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

Zacks Equity Research
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JPMorgan Chase (JPM) closed at $109.22 in the latest trading session, marking a -0.55% move from the prior day. This change lagged the S&P 500's daily gain of 0.09%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.62%.

Heading into today, shares of the biggest U.S. bank by assets had lost 1.34% over the past month, lagging the Finance sector's gain of 1.07% and the S&P 500's gain of 2.08% in that time.

Investors will be hoping for strength from JPM as it approaches its next earnings release, which is expected to be July 14, 2019. The company is expected to report EPS of $2.55, up 11.35% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $29.38 billion, up 5.86% from the year-ago period.

JPM's full-year Zacks Consensus Estimates are calling for earnings of $10.02 per share and revenue of $115.29 billion. These results would represent year-over-year changes of +11.33% and +5.74%, respectively.

Investors should also note any 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.24% higher. JPM is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, JPM is currently trading at a Forward P/E ratio of 10.96. For comparison, its industry has an average Forward P/E of 10.99, which means JPM is trading at a discount to the group.

Investors should also note that JPM has a PEG ratio of 1.57 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. JPM's industry had an average PEG ratio of 1.33 as of yesterday's close.

The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 99, putting it in the top 39% 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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