JPMorgan Chase & Co. (J.P.M. – Free Report) is one of the most searched stocks on Zacks.com these days. So it's worth looking at some facts that could shape the stock's performance in the short term.
The company's stock has returned -5.1% over the past month versus a -0.9% change in the Zacks S&P 500 Composite Index. The Zacks Bank, a regional key industry that includes JPMorgan Chase & Co., has fallen 0.9% over the period. The key question here is where the stock is likely to go in the short term.
While media reports and rumors about significant changes in a company's business outlook typically trigger stock price trends and lead to immediate price movements, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. Exists.
Regarding revisions to performance forecasts
At Zacks, we prioritize evaluating changes in company earnings estimates rather than focusing on anything else. This is because we believe that the fair value of a stock is determined by the present value of its future income stream.
Our analysis is fundamentally based on how the sell-side analysts covering a given stock are revising their earnings estimates to account for the latest business trends. As a company's earnings expectations rise, so does the fair value of its stock. And if a stock's fair value is higher than its current market price, investors will tend to buy the stock, which will cause the stock price to rise. For this reason, empirical research has shown that there is a strong correlation between trends in earnings forecast revisions and short-term stock price movements.
JPMorgan Chase & Co. is expected to post earnings of $4.05 per share for the current quarter, representing a -7.3% change from the year-ago period. Over the past 30 days, the Zacks Consensus Estimate has changed by -1%.
The consensus earnings estimate for the current fiscal year of $15.88 represents a -2.2% change from the prior year. This estimate has changed by +0.1% over the past 30 days.
Next year's consensus earnings estimate of $16.09 represents a +1.3% change from the earnings that JPMorgan Chase & Co. was expected to report a year ago. Over the past month, the forecast has changed by +1.2%.
The Zacks Rank, a proprietary stock evaluation tool with a strong, outside-audited track record, effectively harnesses the power of earnings estimate revisions to provide a more definitive picture of near-term stock price direction. Provides a complete picture. The magnitude of the recent change in consensus estimates and three other factors related to earnings expectations give JPMorgan Chase & Co. a Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's consensus EPS estimate for the next 12 months.
12 months EPS
Expected revenue growth rate
There's no question that a company's profit growth is the best indicator of its financial health, but nothing will happen if it isn't profitable. It's nearly impossible for a company to expand its bottom line without growing it over the long term. Therefore, it's important to know a company's earnings growth potential.
For JPMorgan Chase & Co., the current quarter's consensus revenue estimate of $40.33 billion represents a -2.4% change from the year-ago period. Estimates for the current and next fiscal year are $161 billion and $162.5 billion, representing changes of +1.8% and +0.9%, respectively.
Last reported results and surprising details
JPMorgan Chase & Co. reported revenue of $41.93 billion in its last reported quarter, representing a +9.4% year-over-year change. EPS for the same period was $4.63, compared to $4.10 a year ago.
The reported revenue represents a surprise of +2.52% when compared to the Zacks Consensus Estimate of $40.9 billion. EPS surprise was +10.77%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company has surpassed consensus revenue estimates three times during this period.
evaluation
You cannot make efficient investment decisions without considering stock valuation. Whether a stock's current price accurately reflects the intrinsic value of the underlying business and the company's growth prospects is a key determinant of future stock performance.
Compare the current value of a company's valuation multiples, such as price to earnings (P/E), price to sales (P/S), and price to cash flow (P/CF), to its own value, while also Value helps determine whether a stock is fairly valued, overvalued, or undervalued, and by comparing a company to its peers based on these parameters, you can determine whether a stock is reasonably priced. I can understand the gender.
Zacks Value Style Score (part of the Zacks Style Scores system). We pay close attention to both traditional and unconventional metrics to rate stocks from A to F (A is better than B, B is better than C, and A is better than B). B is better than C, etc.) and can be very helpful in identifying whether a stock is overvalued, properly valued, or temporarily undervalued.
JPMorgan Chase & Co. is rated C on this score, indicating that it trades on par with its peers. Click here to see the values of some of the metrics that determined this grade.
conclusion
The facts discussed here, and much of the other information on Zacks.com, may help you decide whether the market buzz about JPMorgan Chase is worth paying attention to. However, the company's Zacks Rank #3 suggests it has the potential to perform in line with the broader market. In the short term, the market.
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