JPMorgan Chase
JPMorgan Chase
JPM
$4.36
2.16%
24%
IBD Stock Analysis
- Flat base has 205.88 buy point, solid support at 10-week moving average.
Industry Group Ranking
Emerging Pattern
Flat Base
* Not real-time data. All data shown was captured at
1:38PM EDT on
07/01/2024.
JPMorgan Chase stock is the IBD Stock of The Day after it tested a buy point, at record highs. JPMorgan Chase (JPM) boosted share buybacks and dividends on Friday after raising its outlook for net interest income in May.
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The Dow Jones giant dominates the U.S. banking industry, with operations in investment and commercial banking, credit cards, retail banking, and asset and wealth management. Analysts expect JPMorgan Chase to continue to benefit from higher-for-longer interest rates, but growth is slowing.
Among other financial stocks, Interactive Brokers (IBKR), KKR (KKR), Toast (TOST) and Axos Financial (AX) earn a spot on the IBD 50 list of top growth stocks.
JPMorgan Chase Stock Flirts With Buy Point
Shares of the money-center bank rose 1.6% on the stock market today. The move put JPMorgan Chase stock briefly above a 205.88 buy point from a flat base, according to MarketSurge pattern recognition. That help JPM stock score an all-time intraday high on Monday, though it closed just below the entry.
The bank stock sits above all the shorter- and longer-term moving averages, a positive sign. However, the relative strength line remains below the consolidation peak. It would be a healthy sign if the RS line catches up with the stock as it tries to break out. That strength indicator has rallied for much of the past year, a sign of JPMorgan stock’s outperformance vs. the S&P 500.
Passes Fed Stress Test, Boosts Buybacks And Dividend
In terms of key IBD ratings, JPM stock shows an SMR Rating of A, which reflects superior sales growth, margins and return on equity. Further, shares of the Dow Jones banking giant bear an up/down volume ratio of 1.4, a sign of healthy institutional demand.
Much of the upside volume came on June 28. JPMorgan said it would raise its quarterly dividend to $1.25 from $1.15. Its board authorized a $30 billion stock buyback as well. On Wednesday, the Federal Reserve announced the bank had passed the annual Fed stress test, showing it is well positioned to survive a possible recession.
Like JPMorgan Chase, Morgan Stanley (MS) says it’s boosting both share repurchases and dividend payouts.
Last week, the markets reacted favorably to former President Donald Trump’s convincing debate win over President Joe Biden, ahead of the November presidential election. Strategists expect financial stocks to benefit from a potential second Trump term.
During a May 20 investor day, JPMorgan raised its outlook for 2024 net interest income to $91 billion from a previous forecast for $89 billion in April.
JPMorgan stock earns a solid 88 Relative Strength Rating out of a best-possible 99. That is down just a bit from 89 four weeks ago. The 88 RS Rating means that JPMorgan Chase stock has outperformed 88% of all stocks in IBD’s database over the past year.
Year to date, JPMorgan Chase stock has jumped more than 21%, thanks to a first-quarter surge.
JPMorgan Chase Earnings Growth To Slow
The No. 1 U.S. bank by assets shows a strong 93 Composite Rating out of a best-possible 99. The Composite Rating combines various technical and fundamental metrics into one easy-to-read score.
JPM stock bears an 88 EPS Rating on the back of an earnings comeback in 2023 after a decline in 2022.
On April 12, JPMorgan Chase beat first-quarter earnings estimates as revenue rose 9%. However, sales growth slowed for a third consecutive quarter and the company’s guidance disappointed some investors.
On a per-share basis, JPMorgan Chase earnings rebounded 34% in 2023 from a 21% slump in 2022, FactSet shows.
Analysts expect the bank’s earnings per share to turn choppy on a quarterly basis, gaining 2.5% in full-year 2024, then slowing to a 0.4% gain in 2025. Its sales are seen rising a respective 5.5% and 0.8% this year and next year.
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