Why JPMorgan Is Poised to Keep Rallying

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, financial services giant JPMorgan Chase  (NYSE: JPM  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at JPMorgan and see what CAPS investors are saying about the stock right now.

JPMorgan facts

Headquarters (founded)

New York (1823)

Market Cap

$194.0 billion

Industry

Diversified financial services

Trailing-12-Month Revenue

$91.7 billion

Management

Chairman / CEO James Dimon
CFO Marianne Lake

Return on Equity (average, past 3 years)

10.6%

Dividend Yield

2.4%

Competitors

Bank of America
Barclays
Citigroup 

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 87% of the 4,446 members who have rated JPMorgan believe the stock will outperform the S&P 500 going forward.

Earlier this month, one of those Fools, Googlespooch, highlighted several of JPMorgan's positives:

First of all, they have an excellent management team that has proven itself very capable. In addition to its other executives and management team, JPMorgan has Jamie Dimon who is probably one of the most respected individuals in the entire financial world. ...

Next, JPMorgan is one of the largest banks in the world. Though we all know that this does not guarantee their survival, we do know that this, hopefully, means that it will be able to fend off short-term downturns well and even be able to deal with longer-term issues. ...

In addition, JPMorgan has been able to foresee issues coming at them that many others have not been able to. ...

Finally, JPMorgan has solidly paid dividends even when the U.S. Government was enforcing rules limiting the amount of dividends. As soon as possible, JPMorgan raised their dividend back up to a healthy level with talk of possible further hikes in the value of the dividend.

This is a good company for a play on diversified financial services. They have an investing arm, retail and commercial banking, and consulting services.

With big finance firms still trading at deep discounts to their historic norms, investors everywhere are wondering if this is the new normal, or whether finance stocks are a screaming buy today. The answer depends on the company, so to help figure out whether JPMorgan is a buy today, I invite you to read our premium research report on the company today. Click here now for instant access!

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


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