We looked at regional bank BB&T (BBT) earlier, but the reality is that all financials do well with rising interest rates. Even banking giants like J.P. Morgan (JPM) enjoy the benefit of higher rates as they are able to generate greater interest income on the loans that they originate. We saw JPM shares move lower with the overall market over the last week, but the sell off was less pronounced, which was likely a result of traders understanding the benefit of higher rates on the company’s bottom line, as well as the benefits of a strong economy on the company’s overall business. JPM has a has a P/E of 17.7, and analysts forecast earnings growth of 26.15 for the current year, and earnings to rise by 9.2% per annum over the next five years. JPM is currently trading at $112.01, with an average price target of $115.46.
Chart courtesy of www.stockcharts.com