How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in JPMorgan Chase & Co. (JPM) ten years ago? It may not have been easy to hold on to JPM for all that time, but if you did, how much would your investment be worth today?
JPMorgan Chase & Co.'s Business In-Depth
With that in mind, let's take a look at JPMorgan Chase & Co.'s main business drivers.
Headquartered in New York, JPMorgan Chase & Co. is one of the biggest global banks with assets valued at $3.69 trillion and stockholders’ equity worth $280.7 billion as of Mar 31, 2021. With operations in more than 60 countries, the company (incorporated under Delaware law in 1968) is one of the largest financial service firms in the world.
JPMorgan organizes its business through following five reportable segments:
Consumer & Community Banking (CCB) segment (constituting 14.7% of total assets in 2020) serves consumers and businesses through personal service at bank branches and through ATMs, online, mobile and telephone banking. CCB is organized into Consumer & Business Banking, Mortgage Banking, and Card & Auto.
Corporate & Investment Bank (CIB) segment (32.4%) offers a wide range of investment banking (IB), market-making, prime brokerage, and wholesale payments services to a global client base of corporations, investors, financial institutions, government and municipal entities.
Commercial Banking (CB) segment (6.8%) provides lending, wholesale payments, and investment banking services to corporations, municipalities, financial institutions and non-profit entities.
Asset & Wealth Management (AWM) segment (6%) provides services to institutions, retail investors and high-net-worth individuals. It offers global investment management in equities, fixed income, real estate, hedge funds, private equity and liquidity including money market instruments and bank deposits. The segment also offers trust and estate, banking and brokerage services.
Corporate segment (40.1%) consists of Treasury & Chief Investment Office (CIO) and Other Corporate, which includes corporate staff units and centrally managed expenses.
In 2019, JPMorgan acquired InstaMed Holdings Inc.
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in JPMorgan Chase & Co. ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in May 2011 would be worth $3,742.76, or a gain of 274.28%, as of May 14, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 207.41% and gold's return of 17.51% over the same time frame.
Going forward, analysts are expecting more upside for JPM.
JPMorgan's shares have outperformed the industry over the past 12 months. Its earnings have outpaced the Zacks Consensus Estimate in each of the trailing four quarters. Its first-quarter 2021 results reflect strong capital markets performance and reserve releases. Branch openings in new regions, inorganic expansion efforts and strong mortgage banking business are likely to keep supporting financials. While the Fed's accommodative policy and near-zero rates are expected to hurt interest income and margins, and the coronavirus-induced economic downturn that hampered business activities continues to hurt loan demand; gradual economic recovery will likely lead to rise in demand for loans. JPMorgan's impressive capital deployments reflect earnings strength and solid balance sheet. Through these actions it will enhance shareholder value.
The stock is up 6.13% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 9 higher, for fiscal 2021. The consensus estimate has moved up as well.
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