JPM Stock Slips Premarket: Morningstar Says JPMorgan Is Becoming Increasingly Attractive At Current Levels

• Morningstar also added that long-term investors should be ready to buy the stock now on a pullback.
• The research firm cited the company’s market leadership across business lines, wide economic moat, and adept capital allocation as reasons for its bullish stance. 
• The firm assigned JPMorgan a “Wide” Economic Moat rating.

JPMorgan Chase & Co. (JPM) jumped onto the retail radar early Monday even as the company’s shares slipped about 0.3% lower in the premarket session.

The banking stock is down about 0.08% so far this year and is currently trading about 4% below its 52-week high.

Despite the lackluster performance, Morningstar has said that it is “one of the highest-quality financial stocks to own.” In a report published on Friday, the research firm said that the company’s market leadership across business lines, wide economic moat, and adept capital allocation under CEO Jamie Dimon make it “one of the best core stocks to own.”

“A premium price tag has likely left valuation-focused investors on the sidelines,” Morningstar said in its report, adding that long-term investors should be ready to buy the stock now on a pullback.

Why Is Morningstar Bullish On JPM?

According to the research firm, the bank's biggest strength is that its businesses, namely global investment banking fees, institutional trading revenue, domestic deposit market share, payment volume, domestic merchant acquiring, and credit card issuance, reinforce one another to create a comprehensive ecosystem that dominates in the market.

“While each segment is a formidable competitor on its own, we believe the whole is greater than the sum of its parts, allowing the company to forge deeper consumer and commercial relationships more profitably than competing institutions can,” the researcher said.

The firm assigned JPMorgan a “Wide” Economic Moat rating, pointing to the reputation of its investment banking franchise, cost advantages in consumer and commercial banking, and significant switching costs across its operations. Morningstar also sees multiple growth drivers ahead, including branch expansion, stronger deposit gathering, growing customer product penetration, and continued growth in fee-based businesses.

While acknowledging risks tied to economic cycles, regulation, and capital markets activity, Morningstar said that it believes JPMorgan's scale, diversification, and competitive advantages position it to continue outperforming peers over the long term.

JPM Stock: Retail Stance

On Stocktwits, retail sentiment around JPM stock was in the ‘bullish’ territory over the past 24 hours amid ‘high’ message volumes.

Retail sentiment around the stock is at its highest level in the past three months, and retail chatter has jumped 50% in the past 24 hours, according to platform data.

JPM stock has climbed nearly 17% higher in the last year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.