Will a Recent Settlement Allow JPMorgan Chase to Grow?

With shares of JPMorgan Chase (NYSE:JPM) trading around $53, is JPM an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

JPMorgan Chase is a financial holding company that provides various financial services worldwide. The company is engaged in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, asset management, and private equity. Financial services companies like JPMorgan Chase are essential for well-functioning economies around the world.

JPMorgan Chase has reached a settlement with regulators in the U.S. and the U.K. over the $6 billion London Whale trading scandal, agreeing to pay $800 million in fines and admit wrongdoing, which could lead to more private lawsuits. According to a report from the New York Times, the admission of wrongdoing is “groundbreaking,” but the paper still noted the JPMorgan’s senior executives got away without charges. The bank is still facing another fine from the Commodity Futures Trading Commission.