Boston, MA 01/15/2013 (wallstreetpr) – Don’t forget, JPMorgan Chase & Co. (NYSE:JPM) is the largest bank in the U.S. by asset value. The bank’s performance so far is mixed as can clearly be seen in the just released fourth quarter data. The company raised one column and fell on another. Revenue for Q4 was strong at $24.1 billion, but earning came in weaker than expected at $1.30. Analysts had pegged hopes of the company returning $1.35 earnings per share for the quarter.
There is no doubt that JPM fought a good battle to post revenue growth and positive earning even when the condition in the financial sector is still fluid owing to the crippling recession. Basically, the company has got many of its troubles behind it and it is looking at the future with a lot of optimism. Nonetheless, now is the time to ditch this stock.
Full value
The stock of JPMorgan Chase & Co. (NYSE:JPM) looks fully valued and this means that instead of the stock price going up, it is rise for a pullback sooner or later. That being said, this is the time for investors to take profits in the stock and take a walk until good news is seen again.
The fact that the management is not buying back their shares is testimony enough to the fact the stock is expensive. With clear indication that the stock is fully priced at the current range of $58, there is no wiser way to take profits than selling at this expensive price to come back again when the stock has dropped.
Yet another bad news is that the company’s capacity to raise its buyback budget looks limited compared to peers.
Alternative
If you heed the advice that now is the time to sell JPMorgan Chase & Co. (NYSE:JPM), the next question would be what to buy next. For this, I think Well Fargo (NYSE:WFC) and Citigroup (NYSE:C) present much better options in the financial segment.
Bottom line
JPMorgan Chase & Co. (NYSE:JPM) present higher risks potential than reward opportunity at the moment.
