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Based in New York City, JPMorgan Chase & Co. (JPM) is a financial powerhouse with a market cap of $585.99 billion. As a banking and financial services leader, JPMorgan offers comprehensive solutions across investment banking, asset management, and consumer banking. It operates in over 100 countries and serves many customers, from individuals to huge organizations and governments.
Shares of JPMorgan have outperformed the broader market considerably over the past year. JPM has gained 30.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 18.2%. In 2024 alone, JPM stock is up 20%, surpassing the SPX’s 11.5% rise on a YTD basis.
Narrowing the focus, JPM has significantly outperformed the Financial Select Sector SPDR Fund (XLF). The stock has comfortably outperformed the exchange-traded fund’s 12.3% YTD returns.
On Jul. 12, JPM’s shares fell over 1% after the company reported Q2 FICC sales and trading revenue of $4.82 billion, missing the $4.85 billion consensus estimate. On Jul. 18, mega-cap technology stocks and money-center banks declined, with JPMorgan leading the Dow Jones Industrials' losses, closing down over 3%.
In addition, on Aug. 5, JPMorgan's stock fell due to a broader market sell-off triggered by Japan's interest rate hike, which made yen-based loans more expensive. This led traders to sell U.S. assets, including those bought with yen loans. Despite the decline, JPMorgan's stock outperformed the broader market, reflecting investor confidence in its stability and strong financial position.
For the current fiscal year, ending in December, analysts expect JPM’s EPS to decline marginally year over year to $16.78 on a diluted basis. The company's earnings surprise history is robust. It beat the consensus estimate in each of the last four quarters.
Among the 24 analysts covering JPM stock, the consensus rating is a “Moderate Buy,” slightly less bullish than “Strong Buy” three months ago. That’s based on 16 “Strong Buy” ratings, one “Moderate Buy,” and seven “Holds.”
On Aug. 5, Matt O’Connor from Deutsche Bank maintained a “Buy” rating on JPMorgan with a price target of $235, which indicates a 15.2% upside from the current levels.
The mean price target of $213.09 represents a 4.4% premium to JPM’s current price levels. The Street-high price target of $241 suggests an upside potential of 18.1%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
