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JPMorgan Chase & Co. (JPM) Exceeds Market Returns: Some Facts to Consider

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In the latest trading session, JPMorgan Chase & Co. (JPM - Free Report) closed at $192.66, marking a +1.24% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.63% for the day. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq gained 0.82%.

Shares of the company witnessed a gain of 6.3% over the previous month, beating the performance of the Finance sector with its gain of 2.48% and the S&P 500's gain of 1.76%.

The investment community will be closely monitoring the performance of JPMorgan Chase & Co. in its forthcoming earnings report. The company is scheduled to release its earnings on April 12, 2024. It is anticipated that the company will report an EPS of $4.25, marking a 3.66% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $40.94 billion, reflecting a 6.76% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $15.93 per share and a revenue of $160.43 billion, representing changes of -1.85% and +1.47%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for JPMorgan Chase & Co. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 0.36% higher within the past month. JPMorgan Chase & Co. presently features a Zacks Rank of #3 (Hold).

In the context of valuation, JPMorgan Chase & Co. is at present trading with a Forward P/E ratio of 11.95. For comparison, its industry has an average Forward P/E of 10.74, which means JPMorgan Chase & Co. is trading at a premium to the group.

Also, we should mention that JPM has a PEG ratio of 2.39. 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. The average PEG ratio for the Banks - Major Regional industry stood at 1.54 at the close of the market yesterday.

The Banks - Major Regional industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 76, placing it within the top 31% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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