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JPMorgan Chase (JPM) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, JPMorgan Chase (JPM - Free Report) closed at $105.25, marking a -1.04% move from the previous day. This move lagged the S&P 500's daily loss of 0.55%. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.42%.

Heading into today, shares of the biggest U.S. bank by assets had lost 8.88% over the past month, lagging the Finance sector's loss of 7.26% and the S&P 500's loss of 5.71% in that time.

Wall Street will be looking for positivity from JPM as it approaches its next earnings report date. This is expected to be January 11, 2019. On that day, JPM is projected to report earnings of $2.24 per share, which would represent year-over-year growth of 27.27%. Meanwhile, our latest consensus estimate is calling for revenue of $27.10 billion, up 12.19% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.28 per share and revenue of $109.73 billion, which would represent changes of +35.08% and +10.14%, 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.25% higher. JPM is currently a Zacks Rank #2 (Buy).

In terms of valuation, JPM is currently trading at a Forward P/E ratio of 11.46. Its industry sports an average Forward P/E of 11.22, so we one might conclude that JPM is trading at a premium comparatively.

Investors should also note that JPM has a PEG ratio of 1.72 right now. 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 1.15 at yesterday's closing price.

The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 82, putting it in the top 32% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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