Back to top

Image: Bigstock

JPMorgan Chase & Co. (JPM) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

JPMorgan Chase & Co. (JPM - Free Report) closed at $129.44 in the latest trading session, marking a +1.73% move from the prior day. This move lagged the S&P 500's daily gain of 1.99%. Elsewhere, the Dow gained 1.61%, while the tech-heavy Nasdaq added 0.06%.

Prior to today's trading, shares of the company had gained 4.79% over the past month. This has outpaced the Finance sector's loss of 5.79% and the S&P 500's loss of 7.24% in that time.

Investors will be hoping for strength from JPMorgan Chase & Co. as it approaches its next earnings release, which is expected to be July 14, 2022. In that report, analysts expect JPMorgan Chase & Co. to post earnings of $2.78 per share. This would mark a year-over-year decline of 26.46%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $31.16 billion, up 2.22% from the year-ago period.

JPM's full-year Zacks Consensus Estimates are calling for earnings of $11.24 per share and revenue of $125.92 billion. These results would represent year-over-year changes of -26.82% and +3.51%, respectively.

Investors should also note any recent changes to analyst estimates for JPMorgan Chase & Co.These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.86% higher within the past month. JPMorgan Chase & Co. currently has a Zacks Rank of #3 (Hold).

In terms of valuation, JPMorgan Chase & Co. is currently trading at a Forward P/E ratio of 11.32. Its industry sports an average Forward P/E of 10.73, 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 2.26. 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. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.53 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 59, which puts it in the top 24% 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.

Be sure to follow all of these stock-moving metrics, and many 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