JPMorgan shares hit new record high
JPMorgan Chase & Co. hit a fresh record high for the first time in more than two years.
Shares of the largest U.S. bank gained 1.2% to $172.08, surpassing the prior high watermark set in October 2021. The New York-based lender has been a top performer in the sector as it posted record results last year, prompting Chief Executive Jamie Dimon to warn that the bank is “over-earning” in some areas.
JPMorgan rallied 27% last year, easily outperforming the KBW Bank Index’s roughly 5% dip as well as all of its big bank rivals.
The bank’s rebound from its 2022 low pushed its market capitalization to about $500 billion. In 2022, the banking sector and broader market fell due in part to concerns over a recession as the Federal Reserve hiked interest rates. The S&P 500 has also recouped its losses to near a fresh record of its own.
Investors flocked to the largest lender in the wake of the collapse of regional banks in early 2023, and analysts coalesced around a bullish view of JPMorgan. The firm benefited from the acquisition of failed First Republic Bank from the Federal Deposit Insurance Corp. JPMorgan’s stellar performance prompted Wells Fargo analyst Mike Mayo to say that “Goliath is really really winning.”
After a strong run, however, Wall Street has become less certain about whether the stock can maintain its momentum. The expected return potential of the stock is about 3% this year based on analysts’ 12-month price targets, according to data compiled by Bloomberg.
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