JPMorgan Chase & Co (NYSE:JPM) is down nearly 10% this year and continues to trend lower amid Russia's invasion of Ukraine. Cerity Partners' Jim Lebenthal sees opportunity in JPMorgan shares, suggesting the market may be getting it wrong.
"This one seems so easy," Lebenthal said Monday on CNBC's "Fast Money Halftime Report."
Lebenthal's Thesis: He acknowledged that all of the banks have some sort of exposure to Russia, but "the way these stocks have gone on sale, the financials in particular, just mandates that I migrate there," Lebenthal said.
"Here's the underlying premise: the economy is humming."
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When geopolitical tensions ease and the Fed provides more clarity on rate hikes, he expects the market to focus on strong economic activity. The strength of the economy can be seen in durable goods orders and the increase in factory construction across the country, among other things, he added.
"This all requires financing," Lebenthal said. "That's where JPMorgan steps in."
Lebenthal believes the flattening of the yield curve is a temporary response to overseas activity: "When that is resolved, you will see economic activity shining through."
JPM Price Action: JPMorgan has traded as low as $139.57 and as high as $172.96 over a 52-week period.
The stock was down 2.46% at $144.35 Monday afternoon.
Photo: courtesy of JPMorgan.
