The World Is Getting Riskier. Americans Don’t Want to Pay for It.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 19 2025
0mins
Should l Buy JPM?
Source: WSJ
Importance of Insurance: Insurance provides individuals with peace of mind and protection against significant losses through risk pooling.
Challenges Facing Insurance: There is a growing resistance among Americans to pay for insurance, despite increasing risks from various factors such as illness and disasters.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy JPM?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on JPM
Wall Street analysts forecast JPM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for JPM is 341.38 USD with a low forecast of 260.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
11 Buy
7 Hold
1 Sell
Moderate Buy
Current: 322.400
Low
260.00
Averages
341.38
High
400.00
Current: 322.400
Low
260.00
Averages
341.38
High
400.00
About JPM
JPMorgan Chase & Co. is a financial holding company. The Company is engaged in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. The Company operates through three segments: Consumer & Community Banking (CCB), Commercial & Investment Bank (CIB), and Asset & Wealth Management (AWM). Its CCB segment offers products and services to consumers and small businesses through bank branches, ATMs, digital and telephone banking. Its CIB segment consists of banking and payments and markets and securities services, and offers a suite of investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. AWM segment offers investment and wealth management solutions. It offers multi-asset investment management solutions, retirement products and services, brokerage, custody, estate planning, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
JPMorgan Chase Upgraded to Neutral by Baird After Strong Q4 Earnings
- Rating Upgrade: Baird analyst David George upgraded JPMorgan Chase from Underperform to Neutral while maintaining a price target of $280, citing the bank's 'enviable capital position' as a key factor supporting this revision.
- Strong Earnings Report: In its Q4 2025 earnings report, JPMorgan posted an adjusted EPS of $5.23, surpassing the $5.00 consensus, with revenue reaching $46.77 billion, exceeding the $46.20 billion estimate, indicating robust profitability.
- Valuation Concerns: Despite the strong earnings, George noted that JPMorgan's stock trades near 3x tangible book value, suggesting limited margin for disappointment, thus making the risk/reward profile more reasonable but unattractive for new investments.
- Investment Banking Outlook: TD Cowen reiterated its Buy rating on JPMorgan with a price target of $400, despite a 4% drop in shares post-earnings, which analysts deemed 'unwarranted', highlighting a positive outlook for investment banking activity and loan growth in 2026.
See More
How Hershey, United Airlines, and Others Surpassed AI to Become the New Favorites in the Stock Market
Emergence of IoT: The article discusses the growing significance of the Internet of Things (IoT) and how interconnected devices are becoming integral to daily life.
Impact on Industries: It highlights the transformative effects of IoT on various industries, enhancing efficiency and creating new business opportunities.
Consumer Adoption: The piece notes an increase in consumer adoption of smart devices, indicating a shift in how people interact with technology.
Future Prospects: It concludes with insights on the future potential of IoT, suggesting that it will continue to evolve and shape the technological landscape.
See More
Tech Stocks Maintain Strong Earnings Growth Amid Market Volatility
- Sustained Earnings Growth: Deutsche Bank strategists highlighted that tech stocks maintained an earnings growth rate near 30% in Q4, which continues to bolster investor confidence despite a three-day market downturn.
- Software Stocks Struggle: The iShares Expanded Tech-Software Sector ETF (IGV) tumbled nearly 9% over eight consecutive days last week, reflecting investor concerns about potential disruptions to business models from artificial intelligence, leading to increased market volatility.
- Future Earnings Expectations: While analysts anticipate a slowdown in tech profit growth to 23%, forward estimates indicate an uptick in earnings expectations for megacap tech firms, suggesting sustained market confidence in future profitability.
- Market Digestion Phase: CFRA's chief investment strategist noted that the recent volatility in the information technology sector is a necessary digestion of prior gains, with projections for record earnings growth in 2026 and 2027, encouraging investors to remain patient.
See More
AI Drives Investment Opportunities in AppLovin and Robinhood
- AI Technology Transformation: Analysts widely believe that artificial intelligence will be the most transformative technology of the next decade, with its economic impact expected to rival that of the internet, and its adoption rate significantly outpacing that of the internet, indicating strong market potential.
- AppLovin Investment Outlook: AppLovin's Axon ad engine leverages AI to match advertiser demand with publisher supply, with adjusted earnings expected to grow at 48% annually over the next three years; the current P/E ratio of 51 times appears reasonable, and analysts' target price of $771 per share implies an 89% upside.
- Robinhood Market Share Growth: Robinhood is gaining market share across multiple brokerage service categories through payment for order flow and other revenue streams, with adjusted earnings projected to grow at 20% annually over the next three years; the current P/E ratio of 34 times is sensible, and analysts' target price of $152 per share suggests an 81% upside.
- AI Tool Innovation: Robinhood's AI investment tool, Cortex, provides real-time data analysis for Gold subscribers, helping users understand stock price movements, with the CEO stating the goal is to offer users a world-class financial team, further enhancing its appeal among younger investors.
See More
AI Revolutionizes Advertising Industry with Major Stock Upside Potential
- AppLovin AI Engine: AppLovin's AI recommendation engine, powered by Axon technology, enables advertisers to target campaigns effectively, with adjusted earnings expected to grow at 48% annually over the next three years, making the current 51 times earnings valuation appear reasonable and highlighting its strong growth potential in the advertising market.
- Return on Ad Spend: AppLovin delivers a 45% higher return on ad spend (ROAS) than Meta and a 115% higher ROAS than platforms like YouTube and TikTok, indicating the effectiveness of its advertising technology and solidifying its leadership position in the rapidly evolving digital advertising space.
- Robinhood AI Tool: Robinhood's AI investment tool, Cortex, leverages real-time data and analysis to assist users in making informed investment decisions, with adjusted earnings projected to grow at 20% annually over the next three years, showcasing its strong appeal among younger investors.
- Market Share Growth: Robinhood is gaining market share across multiple brokerage service categories, particularly among millennials and Gen Z, boasting twice the customer base of its closest competitor, which is expected to further drive revenue growth and enhance its market position.
See More
Private Credit Markets Face AI Disruption Risks
- Increased Pressure on Software Sector: The introduction of new AI tools by Anthropic has triggered a sell-off in software data provider shares, intensifying uncertainty in the private credit market, particularly regarding lending risks to software companies.
- Decline in Asset Management Stocks: Ares Management fell over 12%, Blue Owl Capital dropped more than 8%, and KKR and TPG saw declines of nearly 10% and 7%, respectively, reflecting investor concerns about AI's potential impact on cash flows and default risks.
- Rising Default Risks: UBS Group has warned that in an aggressive disruption scenario, default rates in U.S. private credit could rise to 13%, significantly higher than the projected stress for leveraged loans and high-yield bonds, estimated at 8% and 4%, respectively.
- Liquidity Issues Intensified: Although strains in private credit predate AI concerns, Jeffrey C. Hooke noted that existing liquidity and loan extension issues have been exacerbated by recent developments, adding new challenges to an already pressured sector.
See More
JPMorgan Chase Upgraded to Neutral by Baird After Strong Q4 Earnings
- Rating Upgrade: Baird analyst David George upgraded JPMorgan Chase from Underperform to Neutral while maintaining a price target of $280, citing the bank's 'enviable capital position' as a key factor supporting this revision.
- Strong Earnings Report: In its Q4 2025 earnings report, JPMorgan posted an adjusted EPS of $5.23, surpassing the $5.00 consensus, with revenue reaching $46.77 billion, exceeding the $46.20 billion estimate, indicating robust profitability.
- Valuation Concerns: Despite the strong earnings, George noted that JPMorgan's stock trades near 3x tangible book value, suggesting limited margin for disappointment, thus making the risk/reward profile more reasonable but unattractive for new investments.
- Investment Banking Outlook: TD Cowen reiterated its Buy rating on JPMorgan with a price target of $400, despite a 4% drop in shares post-earnings, which analysts deemed 'unwarranted', highlighting a positive outlook for investment banking activity and loan growth in 2026.
See More
How Hershey, United Airlines, and Others Surpassed AI to Become the New Favorites in the Stock Market
Emergence of IoT: The article discusses the growing significance of the Internet of Things (IoT) and how interconnected devices are becoming integral to daily life.
Impact on Industries: It highlights the transformative effects of IoT on various industries, enhancing efficiency and creating new business opportunities.
Consumer Adoption: The piece notes an increase in consumer adoption of smart devices, indicating a shift in how people interact with technology.
Future Prospects: It concludes with insights on the future potential of IoT, suggesting that it will continue to evolve and shape the technological landscape.
See More
Tech Stocks Maintain Strong Earnings Growth Amid Market Volatility
- Sustained Earnings Growth: Deutsche Bank strategists highlighted that tech stocks maintained an earnings growth rate near 30% in Q4, which continues to bolster investor confidence despite a three-day market downturn.
- Software Stocks Struggle: The iShares Expanded Tech-Software Sector ETF (IGV) tumbled nearly 9% over eight consecutive days last week, reflecting investor concerns about potential disruptions to business models from artificial intelligence, leading to increased market volatility.
- Future Earnings Expectations: While analysts anticipate a slowdown in tech profit growth to 23%, forward estimates indicate an uptick in earnings expectations for megacap tech firms, suggesting sustained market confidence in future profitability.
- Market Digestion Phase: CFRA's chief investment strategist noted that the recent volatility in the information technology sector is a necessary digestion of prior gains, with projections for record earnings growth in 2026 and 2027, encouraging investors to remain patient.
See More
AI Drives Investment Opportunities in AppLovin and Robinhood
- AI Technology Transformation: Analysts widely believe that artificial intelligence will be the most transformative technology of the next decade, with its economic impact expected to rival that of the internet, and its adoption rate significantly outpacing that of the internet, indicating strong market potential.
- AppLovin Investment Outlook: AppLovin's Axon ad engine leverages AI to match advertiser demand with publisher supply, with adjusted earnings expected to grow at 48% annually over the next three years; the current P/E ratio of 51 times appears reasonable, and analysts' target price of $771 per share implies an 89% upside.
- Robinhood Market Share Growth: Robinhood is gaining market share across multiple brokerage service categories through payment for order flow and other revenue streams, with adjusted earnings projected to grow at 20% annually over the next three years; the current P/E ratio of 34 times is sensible, and analysts' target price of $152 per share suggests an 81% upside.
- AI Tool Innovation: Robinhood's AI investment tool, Cortex, provides real-time data analysis for Gold subscribers, helping users understand stock price movements, with the CEO stating the goal is to offer users a world-class financial team, further enhancing its appeal among younger investors.
See More
AI Revolutionizes Advertising Industry with Major Stock Upside Potential
- AppLovin AI Engine: AppLovin's AI recommendation engine, powered by Axon technology, enables advertisers to target campaigns effectively, with adjusted earnings expected to grow at 48% annually over the next three years, making the current 51 times earnings valuation appear reasonable and highlighting its strong growth potential in the advertising market.
- Return on Ad Spend: AppLovin delivers a 45% higher return on ad spend (ROAS) than Meta and a 115% higher ROAS than platforms like YouTube and TikTok, indicating the effectiveness of its advertising technology and solidifying its leadership position in the rapidly evolving digital advertising space.
- Robinhood AI Tool: Robinhood's AI investment tool, Cortex, leverages real-time data and analysis to assist users in making informed investment decisions, with adjusted earnings projected to grow at 20% annually over the next three years, showcasing its strong appeal among younger investors.
- Market Share Growth: Robinhood is gaining market share across multiple brokerage service categories, particularly among millennials and Gen Z, boasting twice the customer base of its closest competitor, which is expected to further drive revenue growth and enhance its market position.
See More
Private Credit Markets Face AI Disruption Risks
- Increased Pressure on Software Sector: The introduction of new AI tools by Anthropic has triggered a sell-off in software data provider shares, intensifying uncertainty in the private credit market, particularly regarding lending risks to software companies.
- Decline in Asset Management Stocks: Ares Management fell over 12%, Blue Owl Capital dropped more than 8%, and KKR and TPG saw declines of nearly 10% and 7%, respectively, reflecting investor concerns about AI's potential impact on cash flows and default risks.
- Rising Default Risks: UBS Group has warned that in an aggressive disruption scenario, default rates in U.S. private credit could rise to 13%, significantly higher than the projected stress for leveraged loans and high-yield bonds, estimated at 8% and 4%, respectively.
- Liquidity Issues Intensified: Although strains in private credit predate AI concerns, Jeffrey C. Hooke noted that existing liquidity and loan extension issues have been exacerbated by recent developments, adding new challenges to an already pressured sector.
See More
