JPMorgan: Still Not A Buy After Bank Stress Tests


  • The leading US banks exceeded the minimum capital ratio requirements in the Fed’s annual bank stress tests.
  • JPMorgan stock is valued at a premium, suggesting investors didn’t expect poor stress test results.
  • JPM will not likely increase its stock buybacks aggressively, as it doesn’t make prudent financial sense.
  • However, JPM’s financially stable earnings projections suggest a higher-for-longer Fed should benefit JPM.
  • I explain why caution is still warranted on JPM, as market leadership has also rotated out of JPM recently.

Skyscraper building of JP Morgan in Hong Kong


JPMorgan: Banks Passed The Fed’s Stress Tests

JPMorgan Chase & Co. (NYSE:JPM) investors have likely anticipated the positive results from the Fed’s annual bank stress test for 2024. The Fed’s stress test results demonstrate the resilience of

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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