JPMorgan posted exceptionally strong earnings across almost all metrics in the first quarter of 2023. GAAP earnings were better than forecast, though the bank has taken reserves of $1.1 billion for the uncertain macro environment. Revenue beat expectations by a stunning $2.3 billion.
Investors receive a 2.93% dividend. Goldman Sachs has set its target price at $171, while JPMorgan Chase stock has a consensus target of $160.68. Monday’s closing print was $137.07.
Morgan Stanley
This is another white glove firm that looks to take advantage if the banking system continues to deteriorate. Morgan Stanley (NYSE: MS) is a financial holding company that provides various financial products and services to corporations, governments, financial institutions and individuals in the Americas, Europe, Asia and elsewhere.
Its Institutional Securities segment offers capital raising and financial advisory services, including services related to the underwriting of debt, equity and other securities, as well as advice on mergers and acquisitions, restructurings, real estate and project finance. This segment also provides equity and fixed income products, comprising sales, financing, prime brokerage, and market-making services; foreign exchange and commodities; corporate and commercial real estate loans, commercial mortgage and secured lending facilities and financing for sales and trading customers, and asset-backed and mortgage lending; and wealth management services, investment and research services.
The Wealth Management segment offers financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; annuity and insurance products; securities-based lending, residential real estate loans and other lending products; banking; and retirement plan services to individual investors and small to medium-sized businesses and institutions.
The Investment Management segment provides equity, fixed income, alternatives and solutions, and liquidity and overlay services to benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors, corporations and individuals through institutional and intermediary channels.
Morgan Stanley stock comes with a 3.65% dividend. The Goldman Sachs price target is $104, above the $98.01 consensus target. The closing share price on Monday was $84.43.
Wells Fargo
This is another top pick at Goldman Sachs as was as another big money center bank benefiting from higher net interest income, and it is perhaps the best value play for 2023. Wells Fargo & Co. (NYSE: WFC) is a diversified financial services company that provides banking, investment, mortgage and consumer and commercial finance products and services in the United States and internationally.
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