Back to top

Image: Bigstock

JPMorgan Chase & Co. (JPM) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

JPMorgan Chase & Co. (JPM - Free Report) closed the most recent trading day at $150.61, moving +0.8% from the previous trading session. This change outpaced the S&P 500's 0.13% gain on the day. Elsewhere, the Dow gained 0.05%, while the tech-heavy Nasdaq lost 0.5%.

Coming into today, shares of the company had gained 10.64% in the past month. In that same time, the Finance sector gained 5.38%, while the S&P 500 gained 1.1%.

JPM will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.76, up 253.85% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $29.1 billion, up 3% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.61 per share and revenue of $114.82 billion, which would represent changes of +19.48% and -4%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for JPM. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.69% higher. JPM is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, JPM is currently trading at a Forward P/E ratio of 13.95. This represents a premium compared to its industry's average Forward P/E of 13.17.

It is also worth noting that JPM currently has a PEG ratio of 2.79. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Banks - Major Regional industry currently had an average PEG ratio of 2.01 as of yesterday's close.

The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 18% 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.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


JPMorgan Chase & Co. (JPM) - free report >>

Published in