Investors who have owned stocks over the past year have generally experienced some big gains. In fact, the SPDR S&P 500 ETF Trust (NYSE:SPY) total return over the last 12 months is 23.9%. But there is no question some big-name stocks performed better than others along the way.
JPMorgan’s Steady Climb: One company that has been a solid investment throughout 2021 has been U.S. megabank JPMorgan Chase & Co. (NYSE:JPM).
JPMorgan was one of several big banks that outperformed last year in an environment of dropping interest rates, elevated financial market trading activity and impressive loan growth.
JPMorgan consistently beat analyst earnings expectations throughout 2021, driven by strength in its investment banking and asset and wealth management divisions. In the most recent quarter, JPMorgan reported $13.2 billion in net interest income, and net interest margins should only expand as interest rates rise in 2022.
Fixed income revenue dropped 20% in the third quarter, but equities trading revenue soared to $2.6 billion. A red-hot U.S. IPO market has also helped boost JPMorgan’s investment bank revenue. Investment banking fee revenue surged 50% to a record $3.28 billion last quarter.
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At the beginning of 2020, JPMorgan shares were trading at $139.79. The stock was trading at around $117 at the start of March, as news of the coronavirus spreading in China prompted concerns about a U.S. pandemic. When the market crashed later that month, JPMorgan shares dropped as low as $76.91.
When the market bounced off pandemic lows, JPMorgan began to rebound as well. The stock recovered to as high as $115.77 in June 2020 before its recovery rally stalled. JPMorgan shares traded all the way back down to $90.78 in July.
JPMorgan In 2022, Beyond: After a huge break-out to the upside in November, JPMorgan finished 2020 back above $125. The stock rallied to new all-time highs in January 2021 and climbed as high as $172.96 in October before pulling back to finish 2021 at around $158. Today, JPMorgan shares are trading at $166.12.
JPMorgan investors who bought one year ago and held on anticipating a big 2021 performance have generated a decent return on their investment at this point. In fact, $1,000 in JPMorgan stock bought on Jan. 10, 2021, would be worth about $1,258 today, assuming reinvested dividends.
Looking Ahead: Analysts are expecting JPMorgan to grind higher in the next 12 months. The average price target among the 24 analysts covering the stock is $184, suggesting a 10.8% upside from current levels.
Photo: Courtesy of Gideon Benari on Flickr