In this article, we discuss the top 5 value stocks from the Goldman Sachs portfolio. If you want to see more stocks in this selection, check out Goldman Sachs Value Stocks: Top 10 Stock Picks.
5. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 104
Goldman Sachs’ Stake Value: $1,609,282,000
P/E Ratio as of November 10: 10.95
JPMorgan Chase & Co. (NYSE:JPM), the American multinational financial services corporation and investment bank, is one of the top Goldman Sachs value stocks to watch. Goldman Sachs owns 14.3 million shares of JPMorgan Chase & Co. (NYSE:JPM) worth $1.60 billion as of June 2022, representing 0.36% of the total securities.
On October 17, Citi analyst Keith Horowitz reiterated a Buy recommendation on JPMorgan Chase & Co. (NYSE:JPM) with a $135 price target following the company’s Q3 results. The analyst noted the bank is “hitting on all cylinders” and that present share levels provide an “excellent entry point” for a “quality franchise.”
Among the hedge funds tracked by Insider Monkey, 104 funds were bullish on JPMorgan Chase & Co. (NYSE:JPM) at the end of June 2022, compared to 110 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the biggest stakeholder of the company, with approximately 8 million shares worth $900 million.
Here is what Vltava Fund has to say about JPMorgan Chase & Co. (NYSE:JPM) in its Q3 2022 investor letter:
“We regard JPM to be the strongest and best- managed bank in the world. It is a leader in investment banking, commercial banking, credit cards, and asset management. Its size (the largest bank in the USA, with nearly USD 4,000 billion in assets) and diversification give it a strong competitive advantage that is compounded by its cost advantages and the high costs to clients associated with switching banks. JPM’s management prides itself on running the only large bank to avoid major instability over the long term.
JP Morgan’s quality and strength first became fully evident in 2008 under the leadership of its CEO Jamie Dimon. Not only did JP Morgan help to stabilize the market by taking over the failing Bear Stearns in the spring of that year, but throughout the Great Financial Crisis it was the only big US bank that did not require government assistance and it was highly profitable even in the difficult year of 2008.
A well-functioning and efficient bank can be a very good long-term investment, because the interest compounding effect works well here. JPM’s return on equity (ROE) is well into the double digits and this puts it in a good position to continue producing better long-term returns than does the market. JPM has been very profitable even during years when interest rates were close to zero. The current – and perhaps not temporary – return to somewhat more normal, higher interest rates should have a significantly positive impact on the bank’s interest income and overall profitability.”
