JPMorgan Chase posted its fourth-quarter earnings of $3.57 a share, crushing the Wall Street earnings estimates of $3.08 a share (based on FactSet data). The figure is also higher from the year-ago quarter’s level of $3.33 per share.
Net revenue increased to $35.57 billion from $30.35 billion in the year-ago quarter, and beat analysts’ expectations of $34.35 billion, (based on FactSet data).
The bank had $2.3 billion in reserves (including $1.4 billion added over the fourth quarter), exceeding analysts' prediction of a $1.8 billion for credit provisions, amidst "a modest deterioration” in the company’s macroeconomic outlook, now projecting a mild recession in the central scenario.
“The U.S. economy currently remains strong with consumers still spending excess cash and businesses healthy," said JPMorgan CEO Jamie Dimon. "However, we still do not know the ultimate effect of the headwinds coming from geopolitical tensions including the war in Ukraine, the vulnerable state of energy and food supplies, persistent inflation that is eroding purchasing power and has pushed interest rates higher, and the unprecedented quantitative tightening”.
"We remain vigilant and are prepared for whatever happens, so we can serve our customers, clients and communities around the world across a broad range of economic environments," he added.
JPM saw its Momentum Indicator move above the 0 level on June 02, 2023. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 85 similar instances where the indicator turned positive. In of the 85 cases, the stock moved higher in the following days. The odds of a move higher are at .
The Moving Average Convergence Divergence (MACD) for JPM just turned positive on June 02, 2023. Looking at past instances where JPM's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where JPM advanced for three days, in of 315 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 235 cases where JPM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 61 cases where JPM's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where JPM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. JPM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.489) is normal, around the industry mean (0.939). P/E Ratio (10.363) is within average values for comparable stocks, (17.536). Projected Growth (PEG Ratio) (2.953) is also within normal values, averaging (3.223). JPM has a moderately low Dividend Yield (0.029) as compared to the industry average of (0.056). P/S Ratio (3.059) is also within normal values, averaging (2.344).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a major bank
A.I.dvisor indicates that over the last year, JPM has been closely correlated with BAC. These tickers have moved in lockstep 85% of the time. This A.I.-generated data suggests there is a high statistical probability that if JPM jumps, then BAC could also see price increases.