Missed Nvidia in 2009? This Rare Signal Is Flashing Again.\u00a0In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia.\u00a0For the first time in years, that same “Total Conviction” signal is flashing for a company 1\/100th the size of Nvidia.\u00a0Continue \u00bb<\/a> <\/p>\n Today, Wall Street listens to every word Jamie Dimon utters with extreme interest. For example, when he recently warned about increasing market risk in JPMorgan Chase’s second-quarter earnings release, it was headline-grabbing news. When a CEO has this much prominence, investors can give the companies they oversee a bit of a premium. Some are concerned that this is the case with JPMorgan Chase today. <\/p>\n That’s not an unreasonable assessment. JPMorgan’s chase’s price-to-earnings ratio is 15.5x as of this writing, versus a five-year average of 11.5x. Its price-to-book ratio is 2.7x compared to a longer-term average of 1.8x. So, historically speaking, the stock appears to be trading at a premium. That valuation story gets even worse when you compare JPMorgan Chase to the average bank,<\/a> which has a P\/E of 11.6x and a P\/B of 1.3x. <\/p>\n What could go wrong with the JPMorgan Chase premium? <\/p>\n So long as Jamie Dimon sticks around, there’s no particular reason to worry about a “Jamie premium” going away. But at 70, he’s far closer to retirement than he was in 2006, when he was roughly 50. He will eventually step away from the CEO role, leaving his successor with very large shoes to fill. If you own JPMorgan Chase because of Jamie Dimon’s astute leadership, you might want to consider taking some profits, given the stock’s elevated valuation. <\/p>\n That said, if Jamie Dimon steps aside before the next recession hits, the risk of Wall Street revaluing the shares could be even bigger in a downturn. Investors trust Dimon; they won’t know what to think of the next CEO until that person has proven their management chops. This is a case where good leadership may expose investors to increased risk because emotionally driven investors are placing so much trust in one person. <\/p>\n Should you buy stock in JPMorgan Chase right now? <\/p>\n Before you buy stock in JPMorgan Chase, consider this: <\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a> for investors to buy now\u2026 and JPMorgan Chase wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. <\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $421,997!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!* <\/p>\n Now, it’s worth noting\u00a0Stock Advisor’s total average return is 978% \u2014 a market-crushing outperformance compared to 213% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors. <\/p>\n See the 10 stocks \u00bb<\/a> <\/p>\n *Stock Advisor returns as of September 5, 2026. <\/p>\n JPMorgan Chase is an advertising partner of Motley Fool Money. Reuben Gregg Brewer<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> Image source: JPMorgan Chase & Co. <\/p>\n