Wells Fargo & Co (WFC), JPMorgan Chase & Co. (JPM): It Is the Right Time to Scrutinize the Financial Sector?

JPMorgan Chase & Co. (NYSE:JPM) is trading near to its all-time high of $60 per share, showing that the company has been able to completely come out of the financial crisis. Scam issues still are hurting the company’s stock price, however.

Citigroup Inc (NYSE:C) was another bank which was badly hurt in 2008 and was rescued by the U.S. Government. $25 billion in aid was paid to the bank, and another $25 billion was invested afterward along with guarantees for risky assets amounting to $306 billion; the bank has since paid the entire outstanding loan given by the government. The bank’s recent quarterly results have not shown any kind of improvement, however, and that is the reason that investors are staying away from this stock. Another reason is the company’s price-to-earnings ratio of 16.93, showing that the stock is slightly overvalued.

Takeaway

It’s a hard fact that things went haywire in 2008 and the effects of the mess can still be seen in places. Many countries that had investments in the U.S. banking system are still going through a rough patch. Some banks are doing well while others are still struggling to get by. Recovery is slow, but it is coming. It’s a perfect time to invest in banks like Wells Fargo & Co (NYSE:WFC) that have been doing well for the past few quarters.

The article It Is the Right Time to Scrutinize the Financial Sector? originally appeared on Fool.com and is written by quratulain kamila.

quratulain kamila has no position in any stocks mentioned. The Motley Fool recommends Wells Fargo. The Motley Fool owns shares of Citigroup Inc (NYSE:C) , JPMorgan Chase & Co (NYSE:JPM)., and Wells Fargo. quratulain is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.