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JPMorgan Chase (JPM) Gains But Lags Market: What You Should Know

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In the latest trading session, JPMorgan Chase (JPM - Free Report) closed at $105.35, marking a +0.2% move from the previous day. This move lagged the S&P 500's daily gain of 0.22%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.6%.

Prior to today's trading, shares of the biggest U.S. bank by assets had gained 0.99% over the past month. This has outpaced the Finance sector's loss of 0.06% and lagged the S&P 500's gain of 2.39% 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 $2.33 per share. This would mark a year-over-year decline of 1.69%. Meanwhile, our latest consensus estimate is calling for revenue of $28.07 billion, up 0.59% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.70 per share and revenue of $113.78 billion, which would represent changes of +7.78% and +4.36%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for JPM. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.38% lower within the past month. JPM currently has a Zacks Rank of #3 (Hold).

Digging into valuation, JPM currently has a Forward P/E ratio of 10.84. Its industry sports an average Forward P/E of 10.75, so we one might conclude that JPM is trading at a premium comparatively.

Investors should also note that JPM has a PEG ratio of 1.63 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. The Banks - Major Regional industry currently had an average PEG ratio of 1.23 as of yesterday's close.

The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 98, 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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