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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 $198.31, denoting a -0.61% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily loss of 0.27%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq lost 0.19%.

Prior to today's trading, shares of the company had gained 3.84% over the past month. This has lagged the Finance sector's gain of 5.74% and the S&P 500's gain of 7.34% in that time.

Market participants will be closely following the financial results of JPMorgan Chase & Co. in its upcoming release. In that report, analysts expect JPMorgan Chase & Co. to post earnings of $4.09 per share. This would mark a year-over-year decline of 6.41%. Simultaneously, our latest consensus estimate expects the revenue to be $41.2 billion, showing a 0.26% drop compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $16.31 per share and revenue of $165.94 billion, indicating changes of +0.49% and +4.95%, respectively, compared to the previous 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.11% increase. JPMorgan Chase & Co. is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that JPMorgan Chase & Co. has a Forward P/E ratio of 12.23 right now. Its industry sports an average Forward P/E of 11.64, so one might conclude that JPMorgan Chase & Co. is trading at a premium comparatively.

We can also see that JPM currently has a PEG ratio of 1.75. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Banks - Major Regional industry held an average PEG ratio of 1.75.

The Banks - Major Regional industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 38, finds itself in the top 16% echelons of all 250+ industries.

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

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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