Learn more about JPMorgan Chase & Co.’s (JPM), stock grades for Growth, Momentum, and Quality and find out if this bank stock meets your investment requirements.
Investing with JPMorgan Chase & Co. Stock
JPMorgan Chase & Co. operates as a financial holding company. The Company is involved in asset management, financial services, and investment banking. It operates in four segments as well as a Corporate Segment. Its segments are Consumer & Community Banking (Corporate & Investment Bank), Commercial Banking and Asset Management. Consumer & Community Banking provides services to individuals and businesses via bank branches, automatic teller machine, online, mobile, and telephone banking. The Corporate & Investment Bank Segment, which includes Banking and Markets and Investor Services and Treasury and Securities Products and Services to Corporations, Investors, Financial Institutions, Government and Municipal Entities, provides investment banking, prime brokerage, market-making, and treasury and security products and services. The Commercial Banking segment provides financial services such as lending, treasury, investment banking and asset-management. The Asset Management segment consists of wealth management and investment.
Learn more about how JPMorgan Chase & Co. ranks on key metrics to determine if it meets your investment needs.
Latest JPMorgan Chase & Co. (JPM) Stock News
JPMorgan Chase & Co. was worth $513.3 Billion as of October 25, 2021. Compared to the Banks median of $408.9 M, JPMorgan Chase & Co. is up 34.9% by 2021, up 1.7% over the five previous trading days, and up 68.9% by the end of the year. JPMorgan Chase & Co. has a 10.8 price-earnings rate. JPMorgan Chase & Co. is currently generating $57.4 million in trailing 12 months with a 67.7% margin of profit. Most recently, the year-overyear quarterly sales growth was -12.5%. For the current fiscal, analysts anticipate adjusted earnings reaching $14.960 per share. JPMorgan Chase & Co. currently pays 2.3% in dividends.
Diversified Banks’ outlook is good as commercial loan activity and credit risks gradually improve in 2021, and then into 2022. The strongest banks have been able to weather the worst effects of the COVID-19 epidemic and are now poised to continue to grow during the recovery. The possibility of loan loss reverses having a positive impact upon future earnings is one sign. The Federal Reserve intends to maintain rates at near zero until 2022. Banks will experience lower net interest income (NII). These banks receive between 50-60% revenue from NII. This may partially offset the lower rates due to the wide spread between costs of borrowing, lending and loan volume activity. Banks will face less uncertainty in the future, which should make them more profitable and better able to embrace upcoming NII trends. It also helps them to generate non-NII income. Consumer loan growth is driven by low rates. This is despite the fact that mortgage origination and automobile loans play a significant role. The second quarter of 2021 will see a 1-3% increase in commercial loans. Credit card activity is another factor. This has been possible since the lifting of COVID-19 travel restrictions. After the Fed’s Dodd Frank Stress Test (DFAST) results, the return of capital is increasing in the second quarter of 2021. As expected, 23 large banks that were tested performed well above the risk-based minimum capital requirements. All large banks are subjected the normal restrictions of theFed’s Stress Capital buffer SCB framework. This sets the return-of-capital guidelines. JPM and other large banks are above the SCB so we have seen substantial increases in dividends.
Grading JPMorgan Chase & Co. Stock
Stock evaluation requires accessing huge amounts of data. It also requires the knowledge and time to analyze stock movements, make sense of financial ratios and read income statements. A+ Investor is a powerful data suite that simplifies data research and makes it easy for investors to do their own data analysis.
A+ Investor is available for our proprietary stock grades. These provide A-F grades to each of the five key factors for investing: value, growth momentum earnings revisions and quality. This article will examine JPMorgan Chase & Co.’s stock grades in terms of quality, value, and growth.
JPMorgan Chase & Co.’s Growth Grade
Growth investing is based upon the assumption that stocks of companies that have strong, consistent and sustained growth will outperform those with slower growth. We assess several dimensions of growth: year-over-year sales and earnings increases, long(er), historical sales and earnings growth rates, analyst-forecasted earnings growth and long-term earnings growth.
These components measure a company’s success in increasing its sales, earnings and cash flow year-over-year for the latest fiscal quarter. The annualized basis covers the past five years. A higher rate, especially when compared to the sector median leads to better scores.
JPMorgan Chase & Co.’s Growth Score is 39. This score is Weak.
JPMorgan Chase & Co.’s Quality Grade
The percentile rank of key metrics determines the A+ Investor quality rating. The quality grade is the percentage rank of the average percentile ranks for the return of assets (ROA), return of invested capital (ROIC), and gross profit relative assets. This includes buyback yield, change of total liabilities assets, accruals, Z-Score, and Z double prime bankruptcy risk score (Z).
The score can take into consideration all eight measures. If any of those eight measures are invalid, the score will consider the valid remaining measures. Stocks must have a valid (non null) measure and corresponding ranking on at least four of the quality measures to receive a quality score.
A stock’s quality score can be used to determine its “quality”. Higher quality stocks have higher upside potential and less downside risk. Backtesting the quality grade showed that stocks with higher grades outperformed stocks of lower grades in the time period 1998-2019.
Stocks with higher quality subcomponent scores are awarded better grades (higher grades) and lower scores (lower grades) for lower scores.
JPMorgan Chase & Co. has a Quality score of 36. This is Weak.
JPMorgan Chase & Co. Momentum Grade
Momentum grades are used to identify stocks that have unusually high rates or return. Research has shown that stocks with high relative momentum tend outperform those with lower levels. Momentum is calculated by the price change of a stock relative to all other stocks over a given period.
We usually look at the relative strength weighted over the four preceding quarters. The relative price changes for the last four quarters are the weighted four-quarter relative strengths rank. The latest quarterly price change gets a weighting 40% while each of the previous quarters get a weighting 20%.
JPMorgan Chase & Co.’s Momentum Score is 68. This score is Strong.
Other JPMorgan Chase & Co. grades
A+ Investor offers grades for Quality, Growth, Momentum, Quality, as well as Value and Estimate Revisions.
Revision scores for earnings estimates take into account how much a company’s earnings surprise was in the last two quarters. Sometimes, unexpected results lead to further surprises, or at the very least, continued sales growth. In general, however, the reverse is true. Our stock screen which follows companies with the highest revisions in earnings estimates (i.e., best grades) has a 23.1% return to the company since inception. An example screen that follows those with the lowest revisions has an annual return of less than 5%.
Successful stock investing requires you to buy low and sell high. Stock valuation is a crucial consideration when stock selection. Buy stocks that are likely to rise in value, even though momentum investors may disagree.
PMorgan Chase & Co. Stock: Bottom Line
JPMorgan Chase & Co. stocks have a Growth Grade D, Momentum Grade B, and Quality Grade D.
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