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

JPMorgan Chase (JPM) closed the most recent trading day at $98.54, moving -0.47% from the previous trading session. This change lagged the S&P 500's daily gain of 0.01%. At the same time, the Dow added 0.35%, and the tech-heavy Nasdaq gained 0.45%.

Heading into today, shares of the biggest U.S. bank by assets had lost 10.67% over the past month, lagging the Finance sector's loss of 7.8% and the S&P 500's loss of 7.29% in that time.

Investors will be hoping for strength from JPM as it approaches its next earnings release, which is expected to be January 11, 2019. In that report, analysts expect JPM to post earnings of $2.23 per share. This would mark year-over-year growth of 26.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $27.10 billion, up 12.19% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.25 per share and revenue of $109.73 billion. These totals would mark changes of +34.64% and +10.14%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for JPM. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.1% lower. JPM is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, JPM is holding a Forward P/E ratio of 10.7. Its industry sports an average Forward P/E of 10.19, so we one might conclude that JPM is trading at a premium comparatively.

We can also see that JPM currently has a PEG ratio of 1.6. 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 1.08 based on yesterday's closing prices.

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.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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