JPMorgan Chase Vs. Bank of America: Which Stock Offers More Value?
Portfolio Pulse from Surbhi Jain
JPMorgan Chase & Co (JPM) and Bank of America Corp (BAC) reported Q4 2023 earnings, with JPM outperforming BAC. JPM benefited from new deposits, a low-cost acquisition, and record profits, while BAC faced challenges due to interest rate sensitivity and unrealized losses on long-term securities. With expected rate cuts in 2024, analysts see more upside in BAC stock (11.58%) than JPM (9.66%), despite BAC's risks. The Financial Select Sector SPDR Fund (XLF) gained over 5% in 2023.
January 12, 2024 | 3:48 pm
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POSITIVE IMPACT
Bank of America faced Q4 challenges but is seen by analysts as having a higher upside potential for 2024 compared to JPM.
Bank of America's lower valuation and higher upside prediction by analysts suggest a positive short-term impact, despite the risks involved.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
The Financial Select Sector SPDR Fund (XLF) saw modest gains in 2023, and expected rate cuts in 2024 could further benefit the sector.
The XLF's performance reflects the overall financial sector, which is expected to benefit from the anticipated rate cuts in 2024.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 60
NEUTRAL IMPACT
JPMorgan reported strong Q4 earnings with significant gains in 2023, but analysts see limited upside potential for 2024.
JPMorgan's stock has already seen substantial growth, and with analysts predicting a smaller upside compared to BAC, the short-term impact is likely to be neutral.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80