JPM: JPMorgan Pulls Back 11% From Highs at 15x
JPMorgan Chase (NYSE: JPM) has pulled back to $300.30, now sitting 11% below its 52-week high of $337.25 after a sharp 1.9% decline on elevated volume of 18.6 million shares — nearly double the daily average. The sell-off comes amid broader financial sector weakness driven by concerns about AI-driven workforce displacement, with JPMorgan itself reportedly planning to eliminate 40% of positions in certain divisions through automation. The pullback has compressed JPMorgan's trailing P/E to 15.0x, down from 15.5x when we last covered the stock in February. At $300, the stock now trades at 2.48x book value ($130 per share) and just above its 200-day moving average of $299.37 — a level that has served as support in previous corrections. The $810 billion market cap still makes JPMorgan the largest U.S. bank by a wide margin. For investors who viewed JPMorgan as reasonably valued at $310 and 15.5x earnings, the question is whether this pullback represents an opportunity or a warning. Full-year 2025 earnings of $56.8 billion and a return on equity north of 15% remain impressive, but the stock faces headwinds from potential rate cuts, credit cycle concerns, and fresh legal exposure from a Tricolor subprime auto lending lawsuit.