$JPM

JPM is a top company. At 13 1/2 PE and 2.49 price to book it is expensive for a bank, cheap as a digital-tech/banking hybrid. Rising growth, deposits, net interest income and average loans; CCT1 ratio 14%, never below 9%, so conservative. He likes it into earnings, expects good results, would not mind being invested.

BullishHe framed it in days
“The Riskiest Earnings Season So Far”
Joseph Carlson After HoursPublished Oct 12 · 7 passages

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7 passages
1:0417:20

For example, we have JP Morgan. That's a big one tomorrow.

Now, looking back through the week, we also have companies like JP Morgan, United Health Group, and Domino's reporting earnings all tomorrow as well. I generally think these companies are going to do well.

With JP Morgan, this is one of the best companies in the market. I actually really like this one. I own JP Morgan for a while. I made some good money buying this one close to COVID.

I sold it at what I thought was a big gain and it was, but the stock just kept going up. So, this was a mistake to sell this one.

It currently trades at a 13 1/2 Ford PE ratio. With banks, you should probably use the price to book. 2.49 is expensive for a bank. So, it depends on how you value this one. If you value it as a digital tech company that also is a little bit of a banking system, then JP Morgan's cheap.

If you value it as primarily just the bank with some tech add-on stuff, then it's expensive.

In any case, the growth has been incredible. Look at how much it's grown in the past 10 years. We also look at the deposit size. We have KPIs here showing that the deposit size is increasing.

More people are saving money, putting their money in JP Morgan. The net interest income is also going up. So, as treasury rates go up, as interest rates go up, the average loan, this is an interesting one.

This is throughout all of their business, commercial and personal, continues to go up as well. So, they have more average loans.

We have another KPI that's been added here. This is one that I actually had to look up. I wasn't familiar with it. I'm not a banking expert, but it's a CCT1 ratio, and this basically says how good the company would be at covering for severe loan losses or their risky investment profile.

If it gets up to a point where they have 15% that's almost like the bank is being too conservative. It just has too much money to cover for even terrible situations. If you get below 9% that's where things start to get dangerous.

And for JP Morgan they've never really gotten down below that 9%. They are right now at 14%. So right now JP Morgan has a very conservative profile. There should be no concerns as far as their banking and their loan profile is involved.

I like it going into this earnings. I think it's going to be good. I think that banks are set up really well right now. I wouldn't mind being invested in JP Morgan.

Watchpoints

JPM's earnings report tomorrow

What this channel has said about $JPM

Joseph Carlson After Hours has only this one call on this stock.

2026-10-12BullishThis one
For example, we have JP Morgan. That's a big one tomorrow.
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