Shares in JP Morgan Chase (NYSE:JPM) declined into the end of March as legal pressure against overdraft fees suggested possibly weaker profitability in coming quarters. The bank’s Russian operations have also been negatively affected by the Ukraine war and resulting sanctions.
Usually, you’d expect banks’ shares to make gains near the beginning of an extended monetary tightening cycle, as seems to be likely now. Participants seem to be concentrating more on negative factors than on greater profitability from interest. Further ahead, though, JPM’s undervaluation based on PE is likely attractive to investors.
JPM is expected to release its earnings report for the first quarter of 2022 on Wednesday, Apr. 13, pre-market. The consensus estimate for earnings per share is $2.71, with the ten estimates ranging from $2.45 to $3.09. However, half of these estimates have been revised down in the last four weeks.
There’s little sign of strength from the chart, with the price firmly below all three moving averages and relatively low volume. ATR’s decline in the second half of last month might suggest consolidation around the lows from early March, but earnings' surprise could significantly alter this impression.