Find out if JPMorgan Chase & Co. (JPM) meets your investment needs. Learn about JPMorgan Chase & Co. stock grades for Growth, Momentum, Quality, and more.
Investing with JPMorgan Chase & Co.
JPMorgan Chase & Co. is a financial holding firm. The Company’s activities include asset management, financial services and investment banking. It has four segments and a corporate segment. Its segments include Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking and Asset Management. Consumer & Community Banking offers services to individuals as well as businesses through bank branches, automated teller machines, online, mobile and telephone banking. The Corporate & Investment Bank Segment includes Banking and Markets and Investor Services and Treasury and Securities Products and Services for Corporations, Investors, Financial Institutions, Government and Municipal Entities. It provides investment banking, prime brokerage, market making, treasury and other security products and services. The Commercial Banking segment offers financial services, including lending, treasury and investment banking, as well as asset-management. The Asset Management segment includes wealth management and investment.
Find out how JPMorgan Chase & Co. ranks based on key metrics and determine if they meet your investment needs.
Latest JPMorgan Chase & Co. (JPM) Stock News
JPMorgan Chase & Co. had a value of $513.3 Billion on October 25, 2021. JPMorgan Chase & Co. has risen 34.9% compared to the Banks median value of $408.9M, an increase of 1.7% over five trading days and an increase of 68.9% at the end of the fiscal year. JPMorgan Chase & Co. currently has a 10.8 rate of price-earnings. JPMorgan Chase & Co. currently generates $57.4 millions in trailing twelve months with a 67.7% profit margin. The year-over-year quarter sales growth was -12.5%. Analysts expect adjusted earnings to reach $14.960 per share for the current fiscal. JPMorgan Chase & Co. currently pays 2.3% dividends.
The outlook for Diversified Banks is positive as credit risk and commercial loan activity improves in 2021 and 2022. The most resilient banks were able to weather the worst of the COVID-19 crisis and are poised to expand during the recovery. One sign is the possibility that loan losses reversed could have a positive effect on future earnings. The Federal Reserve plans to keep rates near zero through 2022. Banks will see lower net interest income (NII). These banks will receive between 50-60% of NII revenue. The wide spread in costs of borrowing, lending, and loan volume activity may partially offset the lower rates. The future will be less uncertain for banks, which will make them more profitable and better able adapt to upcoming NII trends. They also have the ability to earn non-NII income. Low rates are driving consumer loan growth. Low rates are driving consumer loan growth despite the fact mortgage origination and auto loans play an important role. Commercial loans will increase by 1-3% in the second quarter 2021. Another factor is credit card activity. Since the removal of COVID-19 travel restrictions, this has been possible. The Fed’s Dodd Frank Stress Test (DFAST), results have shown that the return on capital is rising in the second quarter 2021. 23 large banks were tested and performed well above the minimum capital requirements based on risk. All large banks are subject to the usual restrictions of theFed’s Stress Capital buffer SCB framework. This establishes the return-of capital guidelines. We have seen significant increases in dividends at JPM and other large banks that are higher than the SCB.
Grading JPMorgan Chase & Co. Stock
Accessing large amounts of data is essential for stock evaluation. You will also need to have the time and knowledge to analyse stock movements, understand financial ratios, and read income statements. A+ Investor is a powerful data tool that simplifies data research, and makes it simple for investors to perform their own data analysis.
A+ Investor is available to help you select your stock grades. These grades provide A-F ratings to each of five key factors that investors should consider: quality, growth momentum earnings revisions, value and quality. This article will discuss JPMorgan Chase & Co. stock grades in terms quality, growth, and value.
JPMorgan Chase & Co. Growth Grade
The assumption behind growth investing is that stocks that experience consistent, strong and sustained growth will perform better than those that experience slower growth. We evaluate several aspects of growth, including year-over-year earnings and sales increases, long(er), historic sales and earnings growth rates as well as analyst-forecasted earnings and long-term earnings gains.
These components are used to measure the company’s ability to increase its earnings, sales and cash flow year over year for the most recent fiscal quarter. This is the five-year average. Higher scores are achieved when the rate is higher than the sector median, in particular.
JPMorgan Chase & Co. has a Growth Score of 39. This score is Weak.
JPMorgan Chase & Co. Quality Grade
The A+ Investor quality rating is determined by the percentile rank for key metrics. The quality score is the percentage rank of key metrics that are at the top of the average percentile rankings for return of assets (ROA), returns of invested capital (ROIC) and gross profit relative assets. This includes accruals, Z-Score and Z prime bankruptcy risk score (Z), as well as buyback yield and change in total liabilities assets.
All eight measures can be taken into account when calculating the score. The score will take into account the valid measures if any of the eight measures is invalid. Stocks must have a valid measure (non null), and the corresponding ranking on at minimum four quality measures in order to be awarded a quality score.
The stock’s “quality score” can be used as a way to assess its “quality”. Stocks with higher quality have greater upside potential and lower downside risk. Backtesting of the quality grade revealed that stocks with higher grades outperformed those with lower grades over the period 1998 to 2019.
Stocks with higher quality components scores get better grades (higher grade) and lower scores for lower scores (lower grade).
JPMorgan Chase & Co. has a Quality Score of 36. This score is Weak.
JPMorgan Chase & Co. Momentum Grade
Stocks with unusually high returns or rates of return are identified by their momentum grades. Research shows that stocks with higher relative momentum outperform stocks with lower levels. Momentum can be defined as the stock’s price change relative to all other stocks during a period.
The relative strength over the preceding four quarters is what we usually consider. The relative price changes over the four most recent quarters are the four-quarter weighted relative strengths ranks. The most recent quarterly price change receives a weighting of 40%, while the prior quarters get a weighting of 20%.
JPMorgan Chase & Co. has a Momentum Score of 68. This score is strong.
Other JPMorgan Chase & Co. grades
A+ Investor provides grades for Quality, Growth and Momentum as well as Value Revisions and Estimate Revisions.
The revision scores used to calculate earnings estimates are based on how big a company’s earnings surprise in the past two quarters. Unexpected results can sometimes lead to more surprises or, at the minimum, sales growth. However, in general, this is not true. Since inception, our stock screen that follows companies with the highest revisions to earnings estimates (i.e. the best grades) has seen a 23.1% return on investment. A screen that only follows companies with the lowest revisions has an average annual return of 5%.
Stock investing is about buying low and selling high. Stock valuation is an important consideration when selecting stocks. Stocks that are expected to increase in value should be bought, even if momentum investors disagree.
PMorgan Chase & Co. Stock: Bottom Line
JPMorgan Chase & Co. stock has a Growth Grade D and Momentum Grade B.
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