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JP Morgan Chase & Co (JPM)

The "El Patron" of investment banking and financial services in the U.S., JP Morgan Chase & Co could gain momentum back to the glory years sooner than we think. Well, that is if the tariff disputes don't pick up again and steal the limelight.

Investment banking had come a long way since the financial crises back in '08 when banks were under capitalized in relation to their risky assets. Investment banks balance sheets in 2020 are much more robust and can take on the COVID-19 pandemic head-on.


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Fundamentals

The investment back had a lackluster first-quarter earnings release with both Revenue and Earnings Per Share missing analysts' expectations as the COVID-19 pandemic takes hold of the economy. Some highlights showed a record increase of 32% in JP Morgan’s trading division, while Bond trading revenue also shined coming in $1billion higher than analysts expected as Government Bonds.

More headwinds are projected over the short term, but with analysts' annual earnings growth expectations around 26% for the bank, you should look beyond COVID-19. The bank has also built a massive net reserve and is set to continue net reserve builds in the second quarter.

JP Morgan Chase & Co (JPM) share overview:

  • Sector: Financials
  • Market Cap of $297.98 billion.
  • Dividend Yield: 3.64 %
  • Price/Earnings (LTM): 11x
  • Price/Book: 1.29x
  • Next Earnings: 14th of July 2020.
  • 52 Week Range low of $79.03 and $141.09 per share high.

JP Morgan Chase & Co declared a $0.90 per share quarterly dividend, which is going ex-dividend on the 2nd of July 2020. The scheduled dividend payment date is the 31st of July 2020. For more details on other company’s dividends over the week, head on over to the Nasdaq Dividend Calendar. 

Chart Life

The volatile price action can be seen on the chart caused by the coronavirus pandemic uncertainty with a slight uptick higher around mid-June. We might see the price action retreat lower to the $83.51 per share support level as a new wave of uncertainty hits the financial sector in the U.S.

The solid red line on the chart is the current price target expectations of the analyst on JP Morgan Chase & Co (JPM) at $108.92 per share.

jpm chart

Informed decisions

More volatility is expected on the U.S. markets from the trade disputes and the second wave of COVID-19 cases and while the U.S. Dollar bounces around; the Financial sector will be affected.

JP Morgan Chase & Co is well-positioned to take on the coronavirus effects for now, but the U.S. economy might not take lightly to another round of trade disputes coupled with COVID-19.

Portfolio particulars

  • Portfolio Hold (Current)*
  • Portfolio Buy opportunity: above $83.51 per share**
  • WhatsTheBeef long term target price: $138.48 per share.

Know your company: JP Morgan Chase & Co (JPM)

  • JPMorgan Chase & Co. is an American multinational investment bank and financial services holding company headquartered in New York City.
  • S&P Global ranks JPMorgan Chase as the largest bank in the United States, and the sixth-largest bank in the world by total assets and It is also the world's most valuable bank by market capitalization.
  • The J.P. Morgan brand is used by the investment banking, asset management, private banking, private wealth management, and treasury services divisions.
  • Fiduciary activity within private banking and private wealth management is done under the aegis of JPMorgan Chase Bank.
  • The Chase brand is used for credit card services in the United States and Canada, the bank's retail banking activities in the United States, and commercial banking.

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Source – EasyResearch, JP Morgan Chase & Co, CNBC, Zacks Research, Koyfin, Seeking Alpha, Wikipedia.

Take note that all stock data was taken on the 24th of June 2020 during the U.S. stock market open. 

*Portfolio Hold (Current) refers to investors who already hold the stock within their portfolio.

**Portfolio Buy opportunity refers to Technical level crossed, which might imply that the markets behavior would support the outlook and Close above refers to a share price close above a Technical Resistance level

READ:
How to use EasyFX to invest in US stocks

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Barry is a market analyst with GT247, with a wealth of experience in the investment markets. Now in his tenth year in the markets, Barry "The Beef" Dumas brings a combination of technical analysis and fundamental insights to the table

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