Will Settlement Concerns Hurt JPMorgan Chase?

With shares of JPMorgan Chase (NYSE:JPM) trading around $51, is JPM an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

JPMorgan Chase is a financial holding company that provides various financial services worldwide. The company is engaged in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, asset management, and private equity. Financial services companies like JPMorgan Chase are essential for well-functioning economies around the world.

JPMorgan Chase could pay between $3 billion and $7 billion to settle investigations into various suspicious practices that the bank is accused of. JPMorgan has offered $3 billion to end a probe into its mortgage business, The Wall Street Journal reports. According to the publication, the Justice Department has rejected that amount as too low due to the high number of cases involved. JPMorgan is facing a series of investigations by the Justice Department that include queries into its mortgage business, hiring practices in China, and energy trading.