Better Buy: JPMorgan Chase vs. Bank of America
I've never been bearish on JPMorgan Chase (NYSE: JPM) long-term, but in the past few months, I've been worried about the kinds of problems the bank might run into in the short term. After all, America's largest bank is a leading lender to the struggling oil industry and has a massive credit card division, which can see losses rack up quickly in a recession. I've also expressed concerns about JPMorgan being able to maintain its current dividend if economic conditions continue to deteriorate.
But after the bank reported a profit of nearly $4.7 billion in the second quarter, while setting aside billions to cover loan losses, there is no doubt in my mind that JPMorgan is a tremendous bank stock to have right now, and probably pretty cheap in the long term at less than $100 per share. Bank of America (NYSE: BAC) is certainly not a bad stock and has fared pretty well during the coronavirus pandemic as far as a bank is concerned, but what JPMorgan did in the second quarter was very special in my opinion. Here's why.
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