JPMorgan Chase & Co. (JPM) closed the most recent trading day at $155.12, moving +0.12% from the previous trading session. This move lagged the S&P 500’s daily gain of 0.42%.
Prior to today’s trading, shares of the company had gained 0.47% over the past month. This has lagged the Finance sector’s gain of 3.25% and the S&P 500’s gain of 6.32% in that time.
JPM will be looking to display strength as it nears its next earnings release, which is expected to be April 14, 2021. In that report, analysts expect JPM to post earnings of $2.95 per share. This would mark year-over-year growth of 278.21%. Meanwhile, our latest consensus estimate is calling for revenue of $29.88 billion, up 5.78% from the prior-year quarter.
JPM’s full-year Zacks Consensus Estimates are calling for earnings of $11.30 per share and revenue of $115.37 billion. These results would represent year-over-year changes of +27.25% and -3.54%, respectively.
It is also important to note the recent changes to analyst estimates for JPM. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 6.09% higher within the past month. JPM is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, JPM currently has a Forward P/E ratio of 13.51. This valuation marks a premium compared to its industry’s average Forward P/E of 13.45.
Investors should also note that JPM has a PEG ratio of 2.7 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Banks – Major Regional was holding an average PEG ratio of 1.75 at yesterday’s closing price.
The Banks – Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 78, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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