Outperforming Bank Giant Could Be Eyeing Another Earnings Blowout

JPM tapped an all-time high just last week

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JPMorgan Chase & Co. (NYSE:JPM) is an American multinational investment bank and financial services holding company. JPMorgan Chase is the largest bank in the U.S. and the fifth-largest bank in the world in terms of total assets. JPM offers investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the financial brand serves millions of customers in the U.S., and many prominent corporate, institutional and government clients globally. On Monday, JPM closed down 2% at $166.64.

JPMorgan Chase is slated to report earnings on Wednesday, October 13. So far, the company has outperformed earnings expectations on all four of its most recent earnings reports over the last 12 months. At this time, Wall Street analysts are expecting $3.00 per share in earnings for Q3 of 2021.

For Q3 of 2020, JPM beat analysts’ estimates by a margin of $0.69, reporting an EPS of $2.92. For Q4 of 2020, JPMorgan's EPS increased to $3.79, beating expectations by a margin of $1.17. For Q1 of 2021, JPM posted an increase in earnings, rising to $4.50 per share. The financial services brand also outperformed estimates by a margin of $1.40. Most recently, for Q2 of 2021, JPMorgan Chase reported an EPS of $3.78 and beat expectations by a margin of $0.58.

JPMorgan Chase stock has increased about 64% in price year-over-year and is up 74% since bottoming at a 52-week low of $95.24 last October. Additionally, shares of JPM have grown 25% year-to-date and the stock is currently down 2.8% from its Oct. 7 all-time high of $171.51. Moreover, JPMorgan Chase & Co. offers a forward dividend of $4.00 and a dividend yield of 2.35%.

Analysts are looking split toward the security. This is per the five sporting a "hold" or "sell" recommendation, versus the seven "strong buy" ratings. Lastly, the security's Schaeffer's Volatility Scorecard (SVS) sits at a 78 out of 100, meaning JPM has exceeded option traders' volatility expectations during the past year.

 

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