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JPMorgan Chase (JPM) Outpaces Stock Market Gains: What You Should Know

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JPMorgan Chase (JPM - Free Report) closed the most recent trading day at $105.69, moving +0.48% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.18%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.03%.

Heading into today, shares of the biggest U.S. bank by assets had gained 2.18% over the past month, lagging the Finance sector's gain of 2.83% and the S&P 500's gain of 4.28% in that time.

Wall Street will be looking for positivity from JPM as it approaches its next earnings report date. The company is expected to report EPS of $2.42, up 2.11% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $28.68 billion, up 2.79% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.94 per share and revenue of $113.80 billion, which would represent changes of +10.44% and +4.38%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for JPM. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% lower. JPM is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, JPM currently has a Forward P/E ratio of 10.58. This represents a discount compared to its industry's average Forward P/E of 10.85.

Investors should also note that JPM has a PEG ratio of 1.59 right now. 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. JPM's industry had an average PEG ratio of 1.29 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 166, which puts it in the bottom 35% 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.

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