Learn more about JPMorgan Chase & Co.’s (JPM) stock grades for Growth, Momentum, Quality, as well as whether this bank stock will meet your investment requirements.
Investing in JPMorgan Chase & Co. stock
JPMorgan Chase & Co. works as a financial holding organization. The Company engages in investment banking, asset management, and financial services. It operates in four segments, as well as a Corporate segment. It operates in three segments: Consumer & Community Banking (Corporate & Investment Bank), Commercial Banking and Asset Management. Consumer & Community Banking services individuals and businesses through branch banking, automatic teller machines, online and mobile banking, as well as telephone banking. The Corporate & Investment Bank segment includes Banking and Markets and Investor Services and Treasury and Securities Products and Services To Corporations, Investors, Financial Institutions, Government and Municipal Entities. This group provides investment banking, prime broker, market-making, treasury and security services. The Commercial Banking segment provides financial services like lending, treasury banking, investment banking and asset management. The Asset Management segment comprises wealth management and investments.
Learn how JPMorgan Chase & Co. ranks based upon key metrics to help you determine if it is right for your investment needs.
Latest JPMorgan Chase & Co. (JPM) Stock News
JPMorgan Chase & Co.’s value was $513.3 Billion at October 25, 2021. JPMorgan Chase & Co.’s value is higher than the Banks median of $408.9 million. It has risen by 34.9% over 2021, 1.7% over the five preceding trading days, and 68.9% to the end. JPMorgan Chase & Co.’s price-earnings ratio is 10.8. JPMorgan Chase & Co. has a trailing 12-months revenue of $57.4million with a 67.7% margin. Recent year-overyear sales growth was 12.5%. Analysts anticipate that adjusted earnings will reach $14.960 per share in the current fiscal. JPMorgan Chase & Co. currently pay 2.3% in dividends.
The outlook for Diversified Banks looks good, as commercial loan activity and credit risk gradually improve in 2021 and into 2022. The best banks have weathered the worst effects from the COVID-19 outbreak and are now well positioned to continue growing during recovery. One indicator is the possibility of loan loss reverses, which could have a positive impact on future earnings. The Federal Reserve intends that rates will remain near zero until 2022. Banks will have lower net income (NII). These banks earn between 50-60% from NII. This could partially offset lower rates because of the wide spread between costs for borrowing, lending and loan volumes. Future uncertainty will mean banks are more profitable and better able embrace upcoming NII trend. This also allows them to generate non-NII revenue. Low rates drive consumer loan growth. This is despite mortgage origination, and auto loans playing a significant part in the growth of consumer loans. A 1-3% rise in commercial loans is expected for the second quarter of 2021. Another factor is credit cards. This is possible because of the removal COVID-19 travel restrictions. The Fed’s Dodd Frank Stress Test results (DFAST) show that capital returns are increasing in the second quarter. As expected, 23 of the large banks tested scored well above the risk-based capital requirements. All large banks are subjected to the Stress Capital buffer SCB framework. This is the setting of the return-of capita guidelines. The SCB is above JPM, so dividends have increased substantially at other large banks.
Grading JPMorgan Chase & Co. Stock
Stock evaluation involves accessing vast amounts of data. It requires knowledge and time to analyze stock movements and make sense of financial ratios. A+ Investor, a powerful data suite, simplifies data research and makes data analysis easy for investors.
A+ Investor is available for proprietary stock grades. These A-F grades are assigned to each of the key factors for investing, namely value, growth momentum earnings revs and quality. This article will review JPMorgan Chase & Co.’s stock grades in terms growth, quality, and value.
JPMorgan Chase & Co.’s Growth Grade
It is based on the assumption that stocks with strong, consistent and long-term growth will be more successful than stocks with slower growth. We consider several dimensions of growth. These include year-overyear sales and earnings increases as well long(er), historical earnings growth rates and analyst-forecasted earnings growing.
These components indicate a company’s ability increase sales, earnings, and cash flow year-overyear for the current fiscal quarter. The five most recent years are included in the annualized basis. Higher scores can be achieved if the sector median is lower than the rate.
JPMorgan Chase & Co. is scoring 39 on its Growth Score. This score is Weak.
JPMorgan Chase & Co.’s Quality Grade
The A+ Investor quality rating determines the percentile rank of key metrics. The quality rank is the percentage rank for the average percentile ranks in return of assets, return on invested capital (ROIC), or gross profit relative assets. This includes buyback yield, change in total liabilities assets, accruals and Z-Score.
All eight measures are eligible for inclusion in the score. The score will only consider valid measures if one of the eight measures is invalid. Stocks must have at least one of the quality scores and a valid measure.
To determine a stock’s “quality”, it can be determined by its quality score. Stocks of higher quality are more likely to have upside potential and less risk. Backtesting revealed that stocks with higher quality grades performed better than stocks with lower grades between 1998 and 2019.
Stocks that have higher quality subcomponent scores receive better grades (higher scores) for higher scores. Stocks with lower scores (lower scores) are given lower grades.
JPMorgan Chase & Co. received a 36 Quality score. This is Weak.
JPMorgan Chase & Co. Momentum Grade
These are stocks with high returns or rates. Research has shown that stocks having high relative momentum are more likely to outperform those with lower levels. Momentum is measured by the price movement of a stock relative all other stocks for a specific period.
We often look at the relative strength of the last four quarters. The relative price movements for the past four quarters is the weighted ranking of the relative strengths. Each quarter receives a 20% weighting, and the latest quarterly price changes get a 40% weighting.
JPMorgan Chase & Co. is ranked 68 in the Momentum Score. This score is Strong.
Other JPMorgan Chase & Co. Grades
A+ Investor gives grades for Quality and Growth, Momentum, Quality as well Value and Estimate Revisions.
Revision scores are used to estimate earnings. They take into consideration how much an organization’s earnings surprise was over the past two quarters. Sometimes unexpected results can lead to additional surprises or even continued sales growth. The reverse is generally true. Since its inception, the stock screen that tracks companies with the highest revisions of earnings estimates (i.e. best grades) has returned 23.1% to the company. Example screen which follows the lowest revisions has a lower annual return than 5%.
You must be willing to sell low in order to succeed with stock investing. Stock valuation is an essential consideration in stock selection. Even though momentum investors might disagree, it is important to invest in stocks that are likely increase in value.
PMorgan Chase & Co. Stock: Bottom Line
JPMorgan Chase & Co. stocks are rated with a Growth grade D, Momentum grade B, and Quality grade D.
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