JP Morgan Chase & Co. (JPM) Now Most Valuable Bank


Warning: parse_url(http://) [function.parse-url]: Unable to parse URL in /var/monkey/provers1/blog/wp-content/plugins/sem-external-links/sem-external-links.php on line 165

It took a while after a bad bet cost it more than $50 billion in market cap, but JP Morgan Chase & Co. (NYSE:JPM) has finally climbed the hill Wednesday, passing Wells Fargo & Company (NYSE:WFC) as the nation’s most valuable bank according to market capitalization, according to data compile by Bloomberg. Wells Fargo had been the most valuable bank since late October 2011.

At the end of trading Wednesday, JP Morgan Chase & Co. (NYSE:JPM) was valued at $184.9 billion after rising 1.6 percent on the week, allowing it to pass the $184.2 billion of Wells Fargo & Company (NYSE:WFC). It was just last year that JP Morgan made a losing bet on derivatives that cost the stock about $51 billion in value, so this is a pretty strong comeback. Taking the No. 1 spot was helped a bit by slowing growth at Well Fargo, where some investors seem to be a little skittish about slowing mortgage lending and tighter margins being reported.

JPMorgan Chase & Co. (NYSE:JPM)RBC Capital Markets analyst Gerard Cassidy said, “Capital-market firms like JPMorgan have been burdened quite heavily by the financial debacle, more so than regional or national banks like Wells Fargo. As they continue to throw the baggage overboard, all of these legacy issues that have been hampering profit are going away. Owning the riskier names is more attractive today in this economy.”

Already this year, JP Morgan Chase & Co. (NYSE:JPM) stock has risen 11 percent, while Wells Fargo & Company (NYSE:WFC) has gone up a little more than 2 percent over this same time period. At this point, JP Morgan is trading a 95 percent of book value, while Wells Fargo is currently at 127 percent of book. “If you are less worried about risk you will start to bid up these shares, which are trading at below book,” said Portales Partners analyst Jennifer Thompson. “That’s where you will focus in terms of relative upside.”

What do you think about JP Morgan Chase & Co. (NYSE:JPM)? Are you a believer in the company and its stock? We’d like your thoughts in the comments section below.

DISCLOSURE: I own no positions in any stock mentioned.

Please see these related JPM articles:

JP Morgan’s Earnings Tell You What You Want to Hear

JP Morgan Could Be a Steal Now

3 Reasons to Buy JP Morgan

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!