Why is JPMorgan Chase & Co. stock outperforming the market?

JPMorgan Chase reported strong fourth-quarter earnings, with an EPS of $4.81, exceeding the consensus estimate of $4.08. This was driven by a 46% increase in investment banking revenue and a 50% rise in net income, totaling $14.0 billion. The bank maintained expense discipline, with core expenses approximately 1% below expectations despite higher revenue. Analysts have a favorable outlook for 2025, with the bank raising its net interest income (NII) ex-markets guidance to around $90 billion. Sequential declines in NII are expected in the first half of 2025, followed by increases due to loan and deposit growth. CEO Jamie Dimon highlighted the resilience of the U.S. economy, noting low unemployment and healthy consumer spending, but cautioned about inflationary pressures and geopolitical complexities. Despite these challenges, JPMorgan distributed a $1.25 per share dividend and repurchased $4.0 billion of common stock. The bank's real estate arm acquired a logistics and storage portfolio in Florida for $25.8 million, aligning with its strategy to invest in high-growth regions. This acquisition is part of broader efforts to capitalize on demand in fast-growing metro areas, reflecting JPMorgan Chase's stable market position while remaining cautious of external economic risks.