JPMorgan Chase Acquires Apple Card Portfolio from Goldman Sachs, Reports Strong Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5h ago
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Source: Yahoo Finance
- Earnings Growth: JPMorgan Chase's latest earnings report reveals significant quarterly profit growth, driving a 1.04% increase in share price over one day, despite a 5.08% decline over the past week; however, a long-term shareholder return of 23.04% indicates strong fundamentals.
- Acquisition Plan: The planned acquisition of Goldman Sachs's Apple Card portfolio not only enhances JPMorgan's market position in the credit card business but also potentially provides new momentum for future profit growth, further solidifying its competitive edge in fintech.
- Valuation Analysis: With JPMorgan's current stock price at $312.47, below the fair value of $328.09, there is a 4.8% upside potential; however, its P/E ratio of 15.1 is higher than the industry average of 11.9, indicating strong market expectations for future growth.
- Market Risks: Despite demonstrating robust growth potential, JPMorgan faces pressures from tighter regulations and rapid fintech advancements that could impact fees and margins, necessitating investor awareness of these risks for informed decision-making.
Analyst Views on JPM
Wall Street analysts forecast JPM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for JPM is 341.38 USD with a low forecast of 260.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
11 Buy
7 Hold
1 Sell
Moderate Buy
Current: 309.260
Low
260.00
Averages
341.38
High
400.00
Current: 309.260
Low
260.00
Averages
341.38
High
400.00
About JPM
JPMorgan Chase & Co. is a financial holding company. The Company is engaged in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. The Company operates through three segments: Consumer & Community Banking (CCB), Commercial & Investment Bank (CIB), and Asset & Wealth Management (AWM). Its CCB segment offers products and services to consumers and small businesses through bank branches, ATMs, digital and telephone banking. Its CIB segment consists of banking and payments and markets and securities services, and offers a suite of investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. AWM segment offers investment and wealth management solutions. It offers multi-asset investment management solutions, retirement products and services, brokerage, custody, estate planning, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
