Is JPMorgan Chase & Co. (JPM) the Best Stock to Invest in for Long Term?

We recently published a list of 10 Best Stocks to Invest in for Long Term. In this article, we are going to take a look at where JPMorgan Chase & Co. (NYSE:JPM) stands against other best stocks to invest in for long term.

The markets have had two monster years with the S&P 500 index surging 24.73% and 24.01% in 2023 and 2024, respectively. Meanwhile, the tech-heavy Nasdaq 100 index increased by a whopping 54.9% and 27.01% during the same periods. This was on the back of an AI boom, which benefitted the stocks of big tech companies. However, policy uncertainties and the risk of a stagflation, where inflation remains high without a significant economic growth, have caused a downtrend in those markets in 2025.

While Risks are Elevated, Opportunities Present Themselves

CNBC recently interviewed Souls’ Dan Greenhaus, Robinhood’s Stephanie Guild, and Invesco’s Brian Levitt. Greenhaus suggested that a lot of the worse-case scenarios have been priced into the market. While he conceded that he still remains cautious, he feels that the effects of the tariffs on inflation may not be as dire as most people think.  This is in line with a Morgan Stanley research which suggested that while the worst may be over, the coast is not clear yet.

However, Stephanie Guild and Brian Levitt are a bit more cautious. Levitt added that he sees uncertainty persisting for longer, which means that volatility is likely to persist. According to Greenhaus, there are times of persistent uncertainty, that cause the risk premium on assets to rise, and present long-term opportunities. However, Levitt pointed out that S&P 500 valuations still remain elevated and are not at prior recession levels. Whereas Guild added that market expectations remain quite high, despite the uncertainty. She said that earnings growth expectations are at 11% and suggested that there is room for earning misses given the risks to the economy, which, in turn, could cause the markets to fall.

While the market is probably going to remain risk-off for a bit, it is likely to offer great discounts on some of the best stocks in the market, sooner or later. Some companies with long runways are already trading at multi-year low levels. Also, these companies with good balance sheets should be able to navigate through a recession, if we were to enter into one, with ease.

Our Methodology

We sifted through the financial media reports to compile a list of the best stocks to invest in for the long-term. We then selected the 10 stocks that were the most popular among elite hedge funds. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

JPMorgan Chase & Co. (NYSE:JPM)

Number of Hedge Fund Holders: 123

JPMorgan Chase & Co. (NYSE:JPM) is a leading U.S.-based financial services firm with global operations. As of December 31, 2024, it reported assets totaling $4.0 trillion and stockholders’ equity of $344.8 billion. The firm operates through three primary segments: Consumer & Community Banking, Commercial & Investment Bank, and Asset & Wealth Management. It serves millions of customers in the U.S. and numerous corporate, institutional, and government clients worldwide.

JPMorgan Chase & Co. (NYSE:JPM) reported strong Q1 2025 results, reporting $14.6 billion in net income and revenue of $46 billion, an 8% year-over-year increase. Markets revenue rose 21%, and noninterest revenue outside of Markets grew 20%, aided by higher asset management and investment banking fees. During JPMorgan’s Q1 earnings call, the management discussed the firm’s outlook amid growing economic uncertainty. CFO Jeremy Barnum explained that although short-term interest rates have dropped, JPMorgan’s net interest income (NII) guidance remains unchanged due to favorable balance sheet factors, higher wholesale deposit balances, and the removal of a placeholder for potential card fee regulation impacts.

Overall, JPM ranks 6th on our list of best stocks to invest in for long term. While we acknowledge the growth potential of JPM, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than JPM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.