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

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In the latest trading session, JPMorgan Chase (JPM - Free Report) closed at $109.60, marking a +0.47% move from the previous day. This move lagged the S&P 500's daily gain of 0.63%. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.64%.

Coming into today, shares of the biggest U.S. bank by assets had lost 5.4% in the past month. In that same time, the Finance sector lost 3.09%, while the S&P 500 lost 4.95%.

Investors will be hoping for strength from JPM as it approaches its next earnings release, which is expected to be January 11, 2019. On that day, JPM is projected to report earnings of $2.24 per share, which would represent year-over-year growth of 27.27%. Meanwhile, our latest consensus estimate is calling for revenue of $27.10 billion, up 12.19% from the prior-year quarter.

JPM's full-year Zacks Consensus Estimates are calling for earnings of $9.28 per share and revenue of $109.73 billion. These results would represent year-over-year changes of +35.08% and +10.14%, respectively.

It is also important to note the recent changes to analyst estimates for JPM. These recent revisions tend to reflect the evolving nature of short-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. Within the past 30 days, our consensus EPS projection has moved 1.39% higher. JPM is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that JPM has a Forward P/E ratio of 11.75 right now. This represents a premium compared to its industry's average Forward P/E of 11.59.

Meanwhile, JPM's PEG ratio is currently 1.76. 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 Banks - Major Regional was holding an average PEG ratio of 1.22 at yesterday's closing price.

The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 87, putting it in the top 34% 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.


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