In the latest trading session, JPMorgan Chase (JPM - Free Report) closed at $107.64, marking a -0.75% move from the previous day. This change lagged the S&P 500's daily gain of 0.3%. At the same time, the Dow 0%, and the tech-heavy Nasdaq gained 0.92%.
Coming into today, shares of the biggest U.S. bank by assets had gained 3.04% in the past month. In that same time, the Finance sector lost 1.61%, while the S&P 500 lost 4.37%.
JPM will be looking to display strength as it nears its next earnings release, which is expected to be January 11, 2019. The company is expected to report EPS of $2.24, up 27.27% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $27.10 billion, up 12.19% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.28 per share and revenue of $109.73 billion. These totals would mark changes of +35.08% and +10.14%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for JPM. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 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 0.01% lower. JPM is currently a Zacks Rank #3 (Hold).
In terms of valuation, JPM is currently trading at a Forward P/E ratio of 11.68. For comparison, its industry has an average Forward P/E of 11.34, which means JPM is trading at a premium to the group.
It is also worth noting that JPM currently has a PEG ratio of 1.75. 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 industry currently had an average PEG ratio of 1.16 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 97, which puts it in the top 38% 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.