Back to top

Analyst Blog

Shares of JPMorgan Chase & Co. (JPM - Analyst Report) reached a new 52-week high, touching $54.96 in the first hour of the trading session on May 22, 2013. The closing price of this major global bank reflected a solid year-to-date return of 20.8%. The trading volume for the session was 46.71 million shares, significantly higher than the average 24.60 million shares over the last 3 months.

Despite the strong price appreciation, this Zacks Rank #2 (Buy) stock has plenty of upside left, given its strong estimate revisions over the last 60 days and expected year-over-year earnings growth of 9.19% for 2013.

Growth Drivers

A rise in the quarterly cash dividend, impressive first-quarter 2013 results – including an earnings surprise of 15.2% and the underlying strength in its business segments – as well as a strong capital position were the primary growth drivers for JPMorgan.

On May 21, JPMorgan announced a 26.7% hike in its quarterly dividend to 38 cents per share. The dividend will be paid on Jul 31 to shareholders of record as of Jul 5. This pegged the company’s quarterly dividend at its highest level.

On Apr 12, the company reported record earnings per share of $1.59, surpassing the Zacks Consensus Estimate of $1.37 and the year-ago figure of $1.19. This marked the fifth straight quarter with a positive earnings surprise for JPMorgan. Results were mainly attributable to reduced non-interest expenses and provision for credit losses, partly offset by a fall in net revenue.

Estimate Revisions Show Strength

Over the last 60 days, 17 out of 21 estimates for 2013 have been revised upward, lifting the Zacks Consensus Estimate by 4.6% to $5.68 per share. For 2014, 13 out of 20 estimates moved higher over the same time frame, helping the Zacks Consensus Estimate advance 3.1% to $5.97 per share.

Other well performing banks include Fifth Third Bancorp (FITB - Analyst Report), The Goldman Sachs Group, Inc. (GS - Analyst Report) and Zions Bancorp. (ZION - Analyst Report), all of which carry the same Zacks Rank as JPMorgan.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%