We recently compiled a list of the 12 Best Big Name Stocks to Invest in Now.In this article, we are going to take a look at where JPMorgan Chase & Co. (NYSE:JPM) stands against other best big name stocks to invest in now.
Big name stocks refer to well-known companies that are widely recognized and have a significant presence in the stock market. These companies are often industry leaders and are included in major stock indices such as the S&P 500, Dow Jones Industrial Average, or Nasdaq Composite. These companies are characterized by their large market capitalizations, stable financial performance, and strong brand recognition.
In an interview on January 22, Dave Sekera, US Market Strategist at Morningstar, provided a detailed outlook for large-cap stocks in 2025. Sekera highlighted that the performance of large-cap stocks in 2024 was particularly strong, driven by several key factors. The explosive demand for artificial intelligence (AI) hardware and platforms, especially in the first half of 2024, significantly boosted the performance of large-cap tech stocks. Additionally, the US economy remained resilient, with faster-than-expected growth, which supported the performance of large-cap stocks. The Federal Reserve’s easing of monetary policy also played a crucial role in driving the market higher.
However, Sekera noted that the rate of monetary policy easing is now slowing, and the market is pricing in fewer rate cuts this year than originally projected. This, combined with sticky inflation and a rise in long-term interest rates, suggests that the tailwinds that supported large-cap stocks in 2024 are beginning to recede.
Furthermore, Sekera pointed out that the concentration of market returns in 2024 was notable, with 10 stocks accounting for 58% of the market gain, despite representing only 30% of the market capitalization. This concentration is less than the 67% peak in June 2024, indicating a broadening of returns in the second half of the year. Despite this broadening, many of these large-cap stocks, particularly those tied to AI, are now trading at significant premiums. Sekera advised investors to be cautious, as very few of these large-cap stocks are currently undervalued, with most trading at 2-star or 1-star ratings, indicating they are overvalued.
Big name stocks remain a compelling investment choice, offering stability, strong financial performance, and long-term growth potential.
Why JPMorgan Chase & Co. (JPM) Is Among the Best Big Name Stocks to Invest in Now?
A group of business people discussing plans around a boardroom table adorned with a financial services company logo.
Our Methodology
To compile our list of the 12 best big name stocks to invest in now, we used Finviz and Yahoo stock screeners to identify well-known, large-cap companies, that have a significant presence in the United States stock market. We then used Insider Monkey’s Hedge Fund database to rank 12 stocks according to the largest number of hedge fund holders, as of Q3 2024. The list is sorted in ascending order of hedge fund sentiment.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
JPMorgan Chase & Co. (NYSE:JPM) is a global financial services firm with a rich history dating back to 1877. The company has a diverse range of businesses, including consumer and community banking, corporate and investment banking, commercial banking, and asset and wealth management. JPMorgan Chase & Co. (NYSE:JPM) operates in over 100 markets and is one of the largest and most well-established financial institutions in the world. The firm operates two divisions, Chase for retail banking and J.P. Morgan for investment banking.
JPMorgan Chase & Co. (NYSE:JPM) is actively pursuing various strategies to acquire new clients, expand its customer base, and drive overall growth in the company. One key area of focus is on acquiring new card accounts to increase its market share in the credit card industry. To achieve this, JPMorgan Chase & Co. (NYSE:JPM) is investing in targeted marketing campaigns, enhancing its digital application and onboarding processes to make it easier for new customers to sign up for its cards. The company is also offering competitive rewards and benefits programs.
JPMorgan Chase & Co. (NYSE:JPM) is also focused on expanding its consumer banking business, with an emphasis on attracting new customers to its deposit products, such as checking and savings accounts. The firm is leveraging its extensive branch and ATM network, as well as its online and mobile banking platforms, to reach new customers and provide them with a seamless and convenient banking experience. The firm is also offering competitive interest rates and terms on its deposit products, as well as new features and services, such as personalized financial planning and investment advice, to help attract and retain new customers.
Overall JPM ranks 8th on our list of the best big name stocks to invest in now. While we acknowledge the potential of JPM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than JPM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
