In the latest trading session, JPMorgan Chase (JPM) closed at $111.35, marking a +0.52% move from the previous day. This change outpaced the S&P 500's 0.68% loss on the day. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, lost 1.46%.
Coming into today, shares of the biggest U.S. bank by assets had lost 2.37% in the past month. In that same time, the Finance sector lost 2.11%, while the S&P 500 lost 1.19%.
JPM will be looking to display strength as it nears its next earnings release. On that day, JPM is projected to report earnings of $2.56 per share, which would represent year-over-year growth of 11.79%. Meanwhile, our latest consensus estimate is calling for revenue of $29.38 billion, up 5.86% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10 per share and revenue of $115.29 billion, which would represent changes of +11.11% and +5.74%, 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant. JPM is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, JPM currently has a Forward P/E ratio of 11.08. This represents a premium compared to its industry's average Forward P/E of 10.9.
It is also worth noting that JPM currently has a PEG ratio of 1.58. 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. The Banks - Major Regional was holding an average PEG ratio of 1.32 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 152, which puts it in the bottom 41% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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