What’s New With JPMorgan Stock?

JPMorgan stock (NYSE: JPM) has gained about 11% year-to-date, compared to the 1% rise in the S&P 500 index over the same period. In comparison, JPMorgan’s peer Wells Fargo (NYSE: WFC) is up by 6% over the same period. So what’s driven the outperformance in JPMorgan stock?

Strong Q1 Results

The banking major outperformed Street expectations in the first quarter of FY 2025. Revenue for the quarter rose 8% to $46.01 billion, led by stronger asset management and investment banking fees, as well as robust trading results. Trading revenue was particularly impressive, surging 48% to $3.8 billion. Net profits were up 9% to $14.6 billion, or $5.07 a share. The bank’s asset management business has also been faring well due to elevated asset prices. Assets under management surged 15% year-over-year to $4.1 trillion. Separately, if you want upside with a smoother ride than an individual stock, consider the High Quality portfolio, which has outperformed the S&P and clocked >91% returns since inception.

Mixed Outlook, But JPM Better Positioned Than Peers

That said, the bank has struck a cautious note about its outlook due to geopolitical issues, the U.S. imposition of tariffs on trading partners, and concerns about inflation. The concerns about inflation have driven up treasury yields with the 10-year yield standoing at over 4.40%, up from 4.01% in early April, while the yield on the 30-year bond stands just under 5%. This could have a mixed effect on JPMorgan. Higher rates and market volatility could weigh on the investment banking business, as they often lead to delays in IPO listings, mergers, and acquisition activity. However, on the lending side, higher yields widen the spread between what banks earn on loans and pay on deposits, which generally improves net interest income and profitability, although they could impact credit quality to an extent. Market volatility could also be hedged in part by the company’s strength in the trading businesses.

JPM stock trades at about $265 per share currently, or about 2.6x tangible book value. While this makes the bank expensive versus peers, this could be partly justified by a strong capital position, higher credit quality, and proactive risk management, which could make it better positioned to thrive in the current environment. JPM has been doubling down on its capital returns program as well. Over the last quarter, the bank repurchased $7 billion of common stock and also announced a 12% increase in the common dividend. We value JPM stock at about $240 per share, slightly below the market price. See our analysis of JPMorgan Valuation: Expensive or Cheap for more details on what’s driving the stock.

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