Analysis of JP Morgan share price for trading

If you want to invest in JP Morgan stock online or buy securities of this company, you must first make sure you have the right information in order to complete your price analysis of this value. This is precisely the purpose of this article in which we will explain how to carry out these analyzes and set up an effective investment strategy. We will in particular present to you this company and its detailed activities as well as its main competitors, its partners and strategic allies and the elements that you must analyze as part of a fundamental analysis of this title.  

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Our advice for trading JP morgan share

Tip number 1

We will closely monitor the dynamism and development of the asset management market in general.

Tip number 2

The market for banking services and credit cards, especially in the United States, will have an undeniable influence on the activities of JP Morgan.

Tip number 3

Of course, we will also pay attention to banking and financial regulations which can be more or less strong constraints for the activities of this group.

Tip number 4

American economic growth but also international growth will also be an impacting factor for the results of this business.

Tip number 5

We will also closely follow the FDIC's insurance premiums and their evolution likely to increase or reduce the margins of JP Morgan.

Tip number 6

In addition to carrying out this fundamental analysis of the JP Morgan share price, we advise you to carry out in parallel a technical analysis of this value in order to compare the signals coming from these two methods

Trade JP Morgan shares!
75% of retail investor accounts lose money when trading CFDs with this provider.

General presentation of JP Morgan:

Let's now explore this business and its activities in order to improve your knowledge regarding its main sources of income and profits.

The JP Morgan Chase & Company group is an American company specializing in finance and, more precisely, one of the main banking groups in the United States. To better understand its activities, it is possible to divide them into several categories according to the share of turnover they generate and in this way:

  • Retail banking activities represent the largest share of the group's revenues with 46.6% of turnover. They relate to the sale of conventional and specialized financial services with real estate loans, car loans and insurance, which are marketed through a network of 5,036 bank branches. The group also offers credit cards.
  • The investment banking and market activities here represent 32.6% of the company's turnover with consultancy services in mergers-acquisitions and restructuring, capital increase, private equity, interventions on the equity, bond and derivative and stock market intermediation markets.
  • Next come asset management activities with 12.7% of turnover and $ 1987 billion in assets under management at the end of 2018.
  • Finally, the commercial banking activities generate 8.1% of the group's turnover.

The group's outstanding deposits currently stand at $ 1,470.70 billion in outstanding deposits and $ 984 billion in outstanding loans.

Geographically, the JP Morgan Chase group now generates 76.4% of its turnover in the United States, 14.8% in Africa, 6.5% in Asia-Pacific and 2.3% in Latin America and the Caribbean islands.

 

Know the competition for JP Morgan shares:

In addition to knowing JP Morgan well, you must of course know its main competitors on the market and in its sector of activity. Here are the companies you should take into account in this analysis:

  • Bank of America or BOA: It is one of the largest American banks in terms of deposit and market capitalization. This group is listed on the NYSE market and joined the Dow Jones index since 2008. It is also one of the 10 largest companies in the world.
  • Citygroup Inc: Also known as Citi, this financial company is also based in the United States and is the result of the merger between Citicorp and Travelers Group in 1998.
  • Deutsche Bank: It is the largest bank in Germany and the eighth largest in Europe in terms of market capitalization. Deutsche Bank subsidiaries are present in more than 75 countries around the world with a major subsidiary in the United States.
  • HSBC: This British interbank company operates in more than 84 countries around the world and has more than 60 million customers.
  • Goldman Sachs: This is an American investment bank created in 1869 and which has offices in the most important financial centers of the world including New York, London, Tokyo or Paris.
  • Morgan Stanley: This American bank is also based in New York. It operates in more than 42 different countries with a network of 1,300 offices and employs over 60,000 people.

 

The strategic alliances set up by the JP Morgan group:

Let us now turn to the analysis of JP Morgan's strategic allies. This bank regularly sets up partnerships with other companies as part of its development and growth strategy. Here are just a few recent examples:

  • BDF: The Banque de France has joined forces with JP Morgan in order to develop its range of gold transaction services for its clients made up of central banks. This partnership enables the Banque de France to offer swap services, loans and remunerated deposits of gold. However, JP Morgan is currently one of the largest banks in terms of gold transactions. This bank is also part of a group managing gold transactions in London.
  • Airplus International: Finally, another strategic partnership set up by JP Morgan is that concluded with AirPlus International which is a major supplier of solutions for managing expenses related to business travel. The two companies have thus created a strategic partnership with the aim of helping multinational organizations to optimize their processes and to strengthen control of their Business Cards and their travel expense management programs.

Frequently Asked Questions

What are the main strengths of JP Morgan?

Currently, JP Morgan's greatest strengths relate to its franchises which are effective among the business divisions. There has also been an improvement in liquidity and capital positions in recent years, which also favors this action. Finally, the group's sources of income are sufficiently diversified, which provides the company with better protection against risk.

What are the weaknesses of the JP Morgan share?

Regarding the main weaknesses of this action of JP Morgan, we note above all a recent increase in expenses on the part of this company, which influences the general cash flow and therefore profitability. Finally, the second weak point of the banking group concerns its significant dependence on the North American market and which makes it vulnerable to its economic cycles.

What has been JP Morgan's involvement in the subprime crisis?

JP Morgan and its subsidiary Washington Mutual played a major role in subprime mortgages and therefore in the 2008 subprime crisis. Following this, the group concluded an amicable agreement in 2013 with the United States justice department and had to pay $ 13 billion, including a $ 2 billion fine and $ 4 billion which was used to compensate individuals.

Where and how to invest in the JP Morgan share price?

You can speculate on the JP Morgan share price online via a trading platform like the one we recommend here and which is among the most reputable brokers of the moment.

Trade JP Morgan shares!
75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.