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Here's How Much You'd Have If You Invested $1000 in JPMorgan Chase & Co. a Decade Ago

Zacks Equity Research
·3 min read

For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.

What if you'd invested in JPMorgan Chase & Co. (JPM) ten years ago? It may not have been easy to hold on to JPM for all that time, but if you did, how much would your investment be worth today?

JPMorgan Chase & Co.'s Business In-Depth

With that in mind, let's take a look at JPMorgan Chase & Co.'s main business drivers.

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Headquartered in New York, JPMorgan Chase & Co. is one of the biggest global banks with assets worth $3.9 trillion and stockholders’ equity worth $317.4 billion as of Sep 30, 2023. With operations in more than 60 countries, the company (incorporated under Delaware law in 1968) is one of the largest financial service firms in the world.

JPMorgan organizes its business through following five reportable segments:

Consumer & Community Banking (CCB) segment (constituting 41.6% of total net revenues in 2022) serves consumers and businesses through personal service at bank branches and through automated teller machine (ATMs), online, mobile and telephone banking. CCB is organized into Consumer & Business Banking, Mortgage Banking, and Card & Auto.

Corporate & Investment Bank (CIB) segment (36.2%) offers a wide range of IB, market-making, prime brokerage, and wholesale payments services to a global client base of corporations, investors, financial institutions, government and municipal entities.

Commercial Banking (CB) segment (8.7%) provides lending, wholesale payments, and investment banking services to corporations, municipalities, financial institutions and non-profit entities.

Asset & Wealth Management (AWM) segment (13.4%) provides services to institutions, retail investors and high-net-worth individuals. It offers global investment management in equities, fixed income, real estate, hedge funds, private equity and liquidity including money market instruments and bank deposits. The segment also offers trust and estate, banking and brokerage services.

Corporate segment (0.1%) consists of Treasury & Chief Investment Office (CIO) and Other Corporate, which includes corporate staff units and centrally managed expenses.

Bottom Line

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in JPMorgan Chase & Co. ten years ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in November 2013 would be worth $2,732.44, or a 173.24% gain, as of November 21, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.

Compare this to the S&P 500's rally of 155.27% and gold's return of 49.14% over the same time frame.

Analysts are anticipating more upside for JPM.

JPMorgan's shares have outperformed the industry over the past year. High interest rates, buyouts, global expansion efforts and decent loan demand will aid net interest income (NII), though rising funding costs will weigh on it. Our estimates for NII (managed) and loans imply a CAGR of 9.8% and 8.8%, respectively, by 2025. Despite visibility of some green shoots in the investment banking (IB) business, IB fees are less likely to improve soon. This, along with the volatile nature of the capital markets business and high mortgage rates, will likely hamper fee income growth. Owing to these challenges, we expect total non-interest income (managed) to witness a CAGR of just 3.6% by 2025. Mounting costs are a woe and we expect it to rise 10.7% in 2023. Aided by solid earnings strength and balance sheet, it will be able to sustain capital distributions.

The stock has jumped 8.72% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 5 higher, for fiscal 2023; the consensus estimate has moved up as well.

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Zacks Investment Research