JPMorgan Chase & Co. (JPM) Dips More Than Broader Markets: What You Should Know
JPMorgan Chase & Co. (JPM) closed at $157.07 in the latest trading session, marking a -1.75% move from the prior day. This change lagged the S&P 500's daily loss of 0.58%.
Heading into today, shares of the company had gained 0.59% over the past month, outpacing the Finance sector's loss of 1.05% and the S&P 500's gain of 0.16% in that time.
Investors will be hoping for strength from JPM as it approaches its next earnings release, which is expected to be October 13, 2021. In that report, analysts expect JPM to post earnings of $2.89 per share. This would mark a year-over-year decline of 1.03%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $29.21 billion, up 0.21% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $14.05 per share and revenue of $122.46 billion, which would represent changes of +58.22% and +2.39%, respectively, from the prior year.
Any recent changes to analyst estimates for JPM should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. JPM is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, JPM is currently trading at a Forward P/E ratio of 11.38. Its industry sports an average Forward P/E of 10.91, so we one might conclude that JPM is trading at a premium comparatively.
We can also see that JPM currently has a PEG ratio of 2.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.24 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 127, putting it in the top 50% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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