4. JP Morgan Chase & Co. (NYSE: JPM)
Number of Hedge Fund Holders: 111
JP Morgan Chase & Co. (NYSE: JPM) ranks 4th on the list of the 10 popular stocks to buy right now. The New York-based multinational investment bank has over 5,100 branches and 17,000 ATMs worldwide. JP Morgan Chase & Co. (NYSE: JPM) also operates through its online mobile banking app, Chase Bank, with over 51 million active customers.
On July 14, Credit Suisse analyst Roth Katzke raised JP Morgan Chase & Co.’s (NYSE: JPM) price target from $170 to $177 and kept his Outperform rating. Shares of JPM rose 57% over the last twelve months.
The company has a market cap of $459.46 billion and offers a dividend yield of 2.37%. In the fiscal second quarter of 2021, JP Morgan Chase & Co. (NYSE: JPM) reported an EPS of $3.78, beating estimates by $3.20. The company’s fiscal second-quarter revenue came in at $30.52 billion, beating the consensus of $29.96 billion.
There were 111 hedge funds that reported owning stakes in JP Morgan Chase & Co. (NYSE: JPM) at the end of the first quarter. The total value of these stakes at the end of Q1 is $5.25 million.
Bretton mentioned JP Morgan Chase & Co. (NYSE: JPM) in its Q4 2020 investor letter. Here is what the fund said:
“After a strong performance in 2019, we wrote this about our bank stocks in last year’s report: “There will be another recession sooner than later, and our banks will see larger loans losses, but we think this is more than priced into the stock, and our banks are well reserved for that eventuality.” Little did we know “sooner” really meant “a few weeks from now.” Despite the economic shock, the banks still have huge capital cushions that can absorb large loan losses. Our remaining bank investments, JPMorgan and Bank of America, increased their reserves significantly at the beginning of the Covid-19 crisis in anticipation of imminent loan defaults, but with the government stimulus and perhaps a more resilient economy than many would have guessed, actual loan losses are up only slightly. They might happen later in 2021, but with an additional stimulus package and the vaccine rolling out, the large-scale losses may not be as bad as most people predicted. The bigger drag on the banks’ earnings power is lower rates, which in our opinion will persist for a long time. Despite this drag, we estimate both JPMorgan and Bank of America will continue to grow revenue and earnings over the next few years, while we believe their stocks remain bargains in a somewhat expensive market. JPMorgan’s earnings per share declined 17% last year, and its stock returned -5.5%. Bank of America’s earnings, which are more sensitive to interest rates, were down 32%, and its stock returned -11.6%.”
