Brian Madden JP Morgan Chase & Co JPM-N TOP PICK Jun 25, 2025

Friday kicks off bank earnings season, a sector that has been crushed, because Wall Street expects a downturn in the economy. JPM is down from 14x to 11x, and shares from $280 to $210, -7.48% today alone. An incredible fall.

Flagship US bank. Dimon has done a spectacular job. Pristine risk controls. Trading ~13x PE. Either #1 or #2 in all of its major businesses. Still growing and gaining market share. Core holding in any portfolio. Time is ripe to buy the best, you don't have to go down the food chain. Yield is 2.73%.

Financial sector offers great promise, though it's reacted to current markets by pricing in a potential recession. Slower economic growth would not be good for banks. Absent a recession, with consumer confidence returning and unleashing M&A, the sector provides a good opportunity.

Don't value it on PE. Instead look at price to book, and it's expensive at 1.8x. Less expensive options include BAC and C.

Strongest broad-based financial. One of his larger positions.

Very efficient, with the lowest overhead ratio and highest ROE of all competitors. Very strong balance sheet, and it's very liquid. Should outperform peers in any type of economic environment. Stock's pulled back on tariff uncertainties about 17% from its highs, now trading ~12.5x forward PE. Increased dividend last week. Yield is 2.42%.

High quality. Globalization is starting to move in a different direction, so this option provides a more domestic focus.

Will benefit from the strong US economy and interest rates.

Buy the leader. Strongest on the way up, most resilient on the way down. Best bank in the world. Global financials represent the most clearly defined leadership theme in the market right now.

Among the banks, they've done the best with their digital strategy, close to MS. They stay abreast of what's happening in fintech and adapt that for their customers/users.