Trade Idea: JPMorgan & Chase Co.
The PSG Wealth research team feels this share offers value, especially because it is trading at 1.7 times its book value. Our analysis found that this companies return-on-equity (ROE) will be supported by tax gains, capital returns ahead of earnings, efficiency gains and higher interest lending margins in a rising interest rate environment. The reduced tax rate will have a direct positive impact on profitability, although no detailed guidance has been given on how these additional profits will be consumed.
Click here to download the presentation slides as a PDF.