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JPMorgan Chase & Co. (JPM) Registers a Bigger Fall Than the Market: Important Facts to Note

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The latest trading session saw JPMorgan Chase & Co. (JPM - Free Report) ending at $153.19, denoting a -0.23% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a loss of 0.2% for the day. Elsewhere, the Dow lost 0.16%, while the tech-heavy Nasdaq lost 0.07%.

The the stock of company has risen by 13.15% in the past month, leading the Finance sector's gain of 9.07% and the S&P 500's gain of 7.49%.

Market participants will be closely following the financial results of JPMorgan Chase & Co. in its upcoming release. It is anticipated that the company will report an EPS of $3.68, marking a 3.08% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $38.82 billion, indicating a 12.38% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $16.68 per share and revenue of $158.22 billion, which would represent changes of +37.97% and +22.94%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for JPMorgan Chase & Co. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.71% higher. JPMorgan Chase & Co. is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, JPMorgan Chase & Co. is currently trading at a Forward P/E ratio of 9.2. For comparison, its industry has an average Forward P/E of 8.66, which means JPMorgan Chase & Co. is trading at a premium to the group.

We can additionally observe that JPM currently boasts a PEG ratio of 1.84. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. JPM's industry had an average PEG ratio of 1.35 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 85, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

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