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JPMorgan Chase & Co. (JPM) Gains As Market Dips: What You Should Know

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JPMorgan Chase & Co. (JPM - Free Report) closed at $130.06 in the latest trading session, marking a +0.6% move from the prior day. This move outpaced the S&P 500's daily loss of 0.9%. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.27%.

Coming into today, shares of the company had lost 3.4% in the past month. In that same time, the Finance sector lost 3.22%, while the S&P 500 lost 2.66%.

JPMorgan Chase & Co. will be looking to display strength as it nears its next earnings release, which is expected to be January 13, 2023. The company is expected to report EPS of $3.17, down 4.8% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $33.96 billion, up 16.07% from the year-ago period.

JPM's full-year Zacks Consensus Estimates are calling for earnings of $11.71 per share and revenue of $129.2 billion. These results would represent year-over-year changes of -23.76% and +6.21%, respectively.

It is also important to note the recent changes to analyst estimates for JPMorgan Chase & Co.These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. JPMorgan Chase & Co. is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, JPMorgan Chase & Co. currently has a Forward P/E ratio of 11.05. Its industry sports an average Forward P/E of 9.71, so we one might conclude that JPMorgan Chase & Co. is trading at a premium comparatively.

Also, we should mention that JPM has a PEG ratio of 2.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.21 based on yesterday's closing prices.

The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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