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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 $106.80, marking a -0.36% move from the previous day. This change lagged the S&P 500's daily loss of 0.01%. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, added 0.12%.

Prior to today's trading, shares of the biggest U.S. bank by assets had gained 1.55% over the past month. This has outpaced the Finance sector's gain of 1.53% and lagged the S&P 500's gain of 2.24% in that time.

Investors will be hoping for strength from JPM as it approaches its next earnings release, which is expected to be April 12, 2019. In that report, analysts expect JPM to post earnings of $2.35 per share. This would mark a year-over-year decline of 0.84%. Our most recent consensus estimate is calling for quarterly revenue of $28.11 billion, up 0.73% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.73 per share and revenue of $114.38 billion, which would represent changes of +8.11% and +4.9%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for JPM. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. Within the past 30 days, our consensus EPS projection has moved 2.08% lower. JPM currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, JPM is holding a Forward P/E ratio of 11.01. This represents a discount compared to its industry's average Forward P/E of 11.07.

Investors should also note that JPM has a PEG ratio of 1.65 right now. 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. 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 102, which puts it in the top 40% 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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