The second-quarter 2024 earnings cycle is underway. JPMorgan Chase (NYSE:JPM) was among the first megacaps to release their financial data. You’ll be pleased with the results and, after conducting your due diligence, you’ll definitely want to own JPMorgan Chase stock.
JPMorgan CEO Jamie Dimon is famous and doesn’t hesitate to express his opinions on the U.S. economy. JPMorgan exceeded expectations, but Dimon still issued a general warning. Let’s determine if it’s a good time to invest in JPMorgan.
You Can’t Deny JPMorgan’s Street Beats
There’s no shortage of press coverage about the toll that high interest rates are taking on big banks and their customers. Nevertheless, JPMorgan performed well during 2024’s second quarter.
Here’s the lowdown. JPMorgan generated revenue of $50.2 billion in Q2 of 2024, beating the analysts’ consensus estimate of $42.23 billion. Furthermore, the company reported a $18.1 billion quarterly profit, while analysts had only expected $17.3 billion.
In the year-earlier quarter, JPMorgan recorded a $14.47 billion profit, so Q2 2024’s result indicates remarkable improvement.
And here’s another highlight: JPMorgan’s investment-banking revenue increased by 46% year over year to $2.5 billion. Thus, it appears that the company isn’t getting crushed under the weight of high interest rates.
Dimon’s Warning About Geopolitics and More
Despite these solid results, I don’t recommend overloading your portfolio with shares of JPMorgan stock. Instead, just consider using a “spare change” approach and buy a few shares at a time.
After all, there are macro-level risks to keep in mind. On that topic, Dimon stated, “While market valuations and credit spreads seem to reflect a rather benign economic outlook, we continue to be vigilant about potential tail risks.”
This is JPMorgan’s CEO talking, so investors should pay attention. Per Reuters, Dimon feels that the risks include a “changing geopolitical situation, which remains the most dangerous since World War II.”
That’s a fair point, and financial-sector stocks can be sensitive to geopolitical flash points. Dimon further cited inflation and interest rates as risk factors; again, banks are sensitive to these factors.
JPMorgan Chase Stock: Note the Risks and Invest Gradually
Dimon’s wise words needn’t prevent you from sleeping at night. Rather, they should serve as a reminder that over-investing in any company, including JPMorgan, isn’t a great idea.
At the same time, JPMorgan’s Street-beating quarterly results demonstrate the company’s firm financial foundation. Hence, investors should grab some spare change and gradually but confidently build a portfolio position in JPMorgan Chase stock.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) and positions in the securities mentioned in this article.
