JPMorgan (NYSE: JPM) Stock

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Contributor, Benzinga
December 8, 2021

JPMorgan, arguably one of the most successful investment banks, was founded in 1871 but has grown into a modern, multinational service.

You can invest in JPMorgan stock today. Learn how with Benzinga’s guide.

How to Buy JPMorgan (NYSE: JPM) Stock

In a few simple steps, you can buy JPMorgan stock. Follow our steps to sign on with a brokerage and learn how to buy stocks today.

Step 1: Pick a brokerage.

A broker acts as the intermediary between you and the stock exchange, in this case, the New York Stock Exchange. The customer places an order via their broker to buy a stock, and the broker carries out those instructions.

For example, if you decide to purchase shares in JPMorgan, you instruct your broker to buy the number of shares you request at the price you set, and it carries out those instructions. 

In return, the broker charges you a fee for its services. The fee varies depending on the broker. It is vital to research costs and other aspects before setting up an account.

Step 2: Decide how many shares you want.

Once you have chosen a broker, you need to fund your account and decide how many shares to buy. Take into account the amount of risk you want to take and the percentage of your account attributed to JPM shares. 

Starting with a small investment and adding consistently over time is a strategy used by many investors. However, before you make your purchase, consider how you will enter the market. 

Step 3: Choose your order type.

This stage requires you to decide on how your position is executed. Different order types exist, but the primary 2 you need to know are market and limit orders. 

Market orders mean you acquire the shares at a price dictated by the market. In other words, you buy at the current market price. Using market orders results in a high chance your order will be filled. 

Limit orders mean that the price you buy the stock at is decided by you. You can determine what price you buy the shares at, but you face the risk that the order won’t be filled if the price doesn’t hit your predetermined level. 

Step 4: Execute your trade. 

After you have completed all the necessary steps to put you in a position to buy the shares, all that is left to do is just that — buy the shares or execute the trade. 

Once you have opened a trade ticket and completed the required fields, the last thing to do is click buy. Once completed, you can monitor the stock and your other positions by navigating to the correct tab on your brokerage platform.

Where to Buy JPMorgan

JPMorgan is among the world’s largest banks, and its stock is listed on the New York Stock Exchange. You won’t have to look hard to find a broker that offers you the chance to invest in JPMorgan shares. 

But finding a broker you trust can be more difficult. Get started with our picks for the top brokers.

JPM Stock History & Value

JPMorgan’s share price has shown positive growth in the current year, gaining 32.65% year-to-date. The company made an excellent start to the year, although movement stagnated and remained quite stale for the companies share price. 

In the previous 3 months, its share price fell 0.56%, displaying low volatility. JPMorgan’s stock price reached all-time highs on October 25, 2021, reaching $172.96. 

Various banks recently reported third-quarter earnings, with megabank JPMorgan leading the way. Its earnings per share beat expectations by 74 cents after coming in at $3.74, although 50 cents of the profits came through a reserve release. In addition, revenue grew 2%, an impressive growth considering the current low-interest rates. Net income came in at $11.7 billion.

Analyzing the current state of the economy holds vast question marks on the future. JPMorgan’s outlook for 2022 is positive and among the most bullish on Wall Street, which could help to see a further upside in the market and JPMorgan’s share price itself.

JPMorgan: What Analysts Are Saying

Markets have been slightly on edge as new Covid variants continue to unfurl. However, the dangers to the economy may not be as bad as previously thought. 

While analyst commentary on JPMorgan shares has been lacking lately, some analysts have provided their opinions on the stock. Take a look at what analysts are saving about JPMorgan.

Zacks Bear Case

While finding a bear case for JPMorgan was challenging to come by, it was recently reported that Morgan Stanley maintained an Underweight rating on the stock but raised its price target to $184.

But research firm Zacks said JPMorgan had solid third-quarter results. It believes lower interest rates and the Federal Reserve’s decision to keep rates the same for the time being are expected to keep harming the firm's profit margins and income from interest.

It added that steadily rising expenses can be expected and may pose a concern to JPMorgan over the coming quarter.

Mike Mayo’s Bull Case

In previous months, 5 different analysts have offered price targets of JPMorgan for the following 12 months. The average came to $188.40 with a high of $210 and one analyst targeting a low of $125.

At the end of October, Wells Fargo analyst Mike Mayo was one analyst who raised the price target on JPMorgan to $210 from $200 and maintained an Overweight rating on the stock. The analyst cites his confidence in JPMorgan’s earnings capacity and consistency.

Pros and Cons of JPMorgan

It is essential to see the arguments of both sides, regardless of whether you favor JPMorgan or look negatively on the stock. Below is a list of the pros and cons to weigh before making an investment.

Pros

  • Low risk, safe stock: The company has been around for a long time and is considered low risk as it has been a market leader for many years.
  • Efficient financials: JPMorgan’s financial stability has helped them overcome many economic downturns. The company has an efficiency ratio of 58% and a return on equity of 19%.
  • Diverse revenue streams: JPMorgan has multiple income streams. It is considered among the largest banks in the world and is a leader in investment banking, asset and wealth management and commercial banking.
  • Growing economy: The current economy has seen improvements in spending and growth. With U.S. rate rises possible on the horizon in 2022, it provides a potential positive outlook for JPMorgan shares. However, this could be seen as a pro with interest rates currently at lows and no guarantees of a rise any time soon.

Cons

  • Uncertainty: Despite improvements in the economy in the last few months, there is still uncertainty around the coronavirus. More specifically, the omicron variant is causing concerns.
  • Inflation: The Fed has announced tapering. However, they have still reinstated that inflation is transitory, which may concern JPMorgan.

Is JPMorgan a Buy, Sell or Hold?

Some bank stocks, including JPMorgan, have made impressive gains since the start of the pandemic and have remained financially stable. Despite interest rates not being in their favor, JPMorgan still managed to beat third-quarter earnings expectations, and its financials have managed to keep up with prior years.

The current uncertainty over the omicron variant poses questions for the future. But if you favor the banking sector, JPMorgan will likely lead the way as a banking stock to consider.

Frequently Asked Questions

Q

What is JPMorgan?

A

JPMorgan is a leading global investment bank and financial services company, holding assets of $2.6 trillion. It specializes in commercial banking, investment banking, private banking, treasuries and securities services and asset management, helping serve consumers and businesses.

 

Q

Is JPMorgan the largest bank in the world?

A

JPMorgan is ranked as the 6th largest bank globally with service in more than 100 countries.

About Sam Boughedda, Stock Market Analyst

He is an expert in the following spaces: stock market news writing, analysis, and research.