On Thursday July 14th, JP Morgan Chase (NYSE:JPM) will release its Q2 earnings results. The company is currently a Zacks Rank #3 (Hold) and shares are down about 8.3% year-to-date.
David Bartosiak will look into JP Morgan Chase’s past earnings, look at what is currently going on with the company, and gives us his thoughts on their upcoming earnings announcement at 2pm EST on YouTube.
Furthermore, Dave will look into some potential options trades for investors looking to make a play on JP Morgan Chase ahead of earnings.
JP Morgan Chase in Focus
JP Morgan Chase is a financial services firm engaged in investment banking, financial services for consumers and small businesses, commercial banking, financial asset management and private equity.
JP Morgan Chase is coming off of an earnings beat of 7.1% in its previous earnings report, posting an EPS that was $0.09 higher than the Zacks Consensus Estimate.
JPM has an average EPS surprise of 4.22% for the last four quarters. In Q2 2015, JPM beat estimates by 6.94% before missing estimates in Q3 2015 by 4.4%. However, in the last two quarters JPM had the same Consensus Estimate, which it beat both times by the same value of $0.09.
Heading into this earnings report, our Most Accurate Estimate for JP Morgan Chase is $1.42, $0.01 lower than the Zacks Consensus Estimate of $1.43.
The financial services sector has experienced pains due to the low interest rates that have characterized the post-Great Recession global economy. This, coupled with Brexit as well as the uncertainty that has followed has put companies like JPM in a difficult spot. Because of Brexit, many financial services companies are strongly considering moving thousands of jobs out of London and into new locations such as Paris, Frankfurt and Dublin.
According to NASDAQ, insiders have sold 778,429 shares of JPM in the last three months. However, JPM increased their buyback by $1.88B in March.
Although the recent macroeconomic climate is some cause for uncertainty, there is currently 86% agreement in upward earnings estimate revisions for JPM this quarter. The current Consensus Estimate reflects an upward shift of $0.02 from the estimates of 60 days ago.
Outlook for the financial services sector is generally more negative, with remaining uncertainty as to whether or not Feds will increase the interest rate. However, the Fed announced that of the 33 banks that were subject to “stress tests,” 31 passed the final round, with JPM being one of then. JPM stock has remained largely stable in the past year, a feat that their peers have not been able to accomplish.
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Dave Bartosiak is the editor of the Momentum Trader and Home Run Investor service. He has over a decade of experience in the financial services industry. He has traded forex, futures, stocks, and options. Mr. Bartosiak is a frequent guest on popular business news TV channels such as Bloomberg TV. He’s also the host of a light-hearted, Millennial-minded series of videos called “Trending Stocks.”
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
JPMORGAN CHASE (JPM): Free Stock Analysis Report
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