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

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JPMorgan Chase (JPM - Free Report) closed at $104.17 in the latest trading session, marking a +0.28% move from the prior day. This move outpaced the S&P 500's daily loss of 0.15%. Elsewhere, the Dow gained 0.21%, while the tech-heavy Nasdaq lost 0.81%.

Heading into today, shares of the biggest U.S. bank by assets had gained 6.41% over the past month, lagging the Finance sector's gain of 8.81% and the S&P 500's gain of 6.55% in that time.

JPM will be looking to display strength as it nears its next earnings release, which is expected to be April 12, 2019. On that day, JPM is projected to report earnings of $2.43 per share, which would represent year-over-year growth of 2.53%. Meanwhile, our latest consensus estimate is calling for revenue of $28.69 billion, up 2.81% from the prior-year quarter.

JPM's full-year Zacks Consensus Estimates are calling for earnings of $9.94 per share and revenue of $113.84 billion. These results would represent year-over-year changes of +10.44% and +4.41%, respectively.

Any recent changes to analyst estimates for JPM should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.06% lower. JPM is currently a Zacks Rank #3 (Hold).

Investors should also note JPM's current valuation metrics, including its Forward P/E ratio of 10.45. This represents a discount compared to its industry's average Forward P/E of 10.5.

It is also worth noting that JPM currently has a PEG ratio of 1.57. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.27 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 181, putting it in the bottom 30% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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