JPMorgan Chase Wards Off Recession Fears To Deliver Standout Q3 Results

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Summary

  • JPMorgan Chase & Co. delivered very strong Q3 2022 results that showed the value of its diversified business model, and shares are far too cheap below 9x earnings.
  • Consumer banking profits improved sequentially thanks to higher rates and credit loss reserves actually declined, a pleasant surprise.
  • While IB fee revenue was hard hit, volatile markets boosted trading income.
  • JPMorgan Chase benefits from higher rates, which outweigh higher credit costs, and the firm should be done building capital by Q1 2023.
  • With buybacks poised to restart next year, JPMorgan Chase stock should move to at least $130 or 10x 2023 earnings.

JP Morgan Chase and Co

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Shares of JPMorgan Chase & Co. (NYSE:JPM) rose about 2% in early trading on Friday as the company reported genuinely strong results. This quarter showed the value of JPM's diversified business and prudent underwriting policies, which should assuage concerns of an

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Over ten years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!

Disclosure: I/we have a beneficial long position in the shares of COF, JPM, SYF either through stock ownership, options, or other derivatives. 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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