In This Article:
JPMorgan Chase (NYSE: JPM) recently reported impressive financial results for the three-month period that ended March 31, corresponding to first-quarter 2025. The massive banking institution exceeded Wall Street expectations, posting revenue growth of 8% and diluted earnings-per-share growth of 14%. Shares were up slightly following the upbeat announcement.
This top bank stock has been a wonderful investment in the past 10 years. Including dividends, it has produced a total return of 378%. That outperformed the broader S&P 500 Index.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
But shares are facing some pressure recently, thanks to concerns about the state of the economy. They're down 18% in the past couple of months (as of April 16). Is now a good time to invest $10,000 in JPMorgan Chase stock and hold for 10 years?
What's not to like?
JPMorgan continues to demonstrate that it's a dominant force in the financial services industry. It generated revenue of $45.3 billion in Q1. While net interest income was up just 1%, non-interest income soared 17%. That latter figure was boosted by a significant jump in equity markets revenue.
The business added 500,000 new checking accounts during the quarter, showcasing the ability to bring on new customers in droves. The asset and wealth management division now has $4.1 trillion in total assets under management, rising 15% year over year.
By having such a notable presence in all areas of the industry, JPMorgan benefits from a diversified business model where strength in one segment can more than offset weakness in another. That minimizes risk in the eyes of investors.
What's more, this company has some core competitive advantages that support its long-term durability. The brand is incredibly powerful and well-known as a trusted financial partner for clients. These customers have switching costs due to their deep relationships with JPMorgan. And because of its tremendous scale, the business certainly possesses some cost advantages, being able to leverage huge expenses for things like marketing and technology.
These factors make up the company's economic moat. This allows JPMorgan to outcompete rivals.
Dealing with the unknown
"The economy is facing considerable turbulence (including geopolitics)," CEO Jamie Dimon commented in the press release.
If you look at the company's latest financial figures, it's hard to be pessimistic. However, the CEO's words should force investors to at least acknowledge that we might be in for a more challenging economic environment in the near term.