JPMorgan has many operating divisions, including investment and corporate banking, asset management, retail financial services, commercial banking, credit cards and financial transaction services.
Top analysts are very positive on the stock, largely because the industry titan faces a continued broad recovery in nearly every aspect of its business:
- Leading M&A advisory and capital markets product set and market share
- Massive footprint of corporate and commercial banking customers
- Sizable wholesale payments businesses.
The company has proven that it has the wherewithal to continually invest in people, products and platforms to further its market share base, extending its competitive advantage versus most peers.
JPMorgan Chase stock investors receive a 3.02% dividend. Oppenheimer has a $186 price objective. The consensus target is $158.37, and shares closed at $131.25 on Monday.
Morgan Stanley
This is another of Wall Street’s white glove firms, and it may be among the best buys in the banking and investment arena after this disaster. Morgan Stanley (NYSE: MS) is a global investment bank with leading positions in investment banking (M&A and equity underwriting), equity trading and wealth management, which contributes nearly 50% of firmwide revenues. The firm also has an asset management business, which adds to the lower-risk business profile the firm has pursued since the financial crisis.
In 2020, the Wall Street investment bank completed a $13 billion purchase of discount brokerage E-Trade. With 5.2 million customers, E-Trade was once a revolutionary platform that “helped usher in a dramatic shift among financial services firms” and fueled the rise of indexes and exchange-traded funds, making investing vastly easier for do-it-yourself investors.
Shareholders receive a 3.52% dividend. Morgan Stanley stock has a $102 price target at Credit Suisse, in line with the $102.14 consensus target. Shares ended Monday trading at $87.99.
Again, three of these six top Wall Street giants are solid positions in Buffett’s Berkshire Hathaway. It may make sense to buy partial positions now and see how this shakes out over the next few weeks. The financial crisis in 2008 forced banks to tighten their risk parameters and controls, and all the mega-cap banks are in far better shape now than they were then. Yet, since another shoe could drop, so caution makes sense when adding these on-sale blue-chip giants.
Originally published at 24/7 Wall St.
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