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

JPMorgan Chase (JPM) closed at $109.83 in the latest trading session, marking a +1.11% move from the prior day. This move outpaced the S&P 500's daily loss of 0.03%. Meanwhile, the Dow lost 0.36%, and the Nasdaq, a tech-heavy index, lost 0.04%.

Coming into today, shares of the biggest U.S. bank by assets had lost 4.97% in the past month. In that same time, the Finance sector lost 3.45%, while the S&P 500 lost 3.08%.

JPM will be looking to display strength as it nears its next earnings release, which is expected to be January 11, 2019. The company is expected to report EPS of $2.24, up 27.27% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $27.10 billion, up 12.19% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.28 per share and revenue of $109.73 billion. These totals would mark changes of +35.08% and +10.14%, respectively, from last year.

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 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. 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 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 1.27% higher. JPM is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note JPM's current valuation metrics, including its Forward P/E ratio of 11.7. For comparison, its industry has an average Forward P/E of 11.66, which means JPM is trading at a premium to the group.

It is also worth noting that JPM currently has a PEG ratio of 1.75. 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 1.18 as of yesterday's close.

The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 81, putting it in the top 32% 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.

To follow JPM in the coming trading sessions, be sure to utilize Zacks.com.

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