Analysts Weigh In on JPMorgan Chase Stock Before Earnings

2 analysts have slashed their price targets ahead of the event

Deputy Editor
Jul 12, 2022 at 12:14 PM
facebook twitter linkedin


JPMorgan Chase & Co (NYSE:JPM) is slated to take a trip to the earnings confessional before the market's open on Thursday, July 14. The major banking name will report will report second-quarter financial results, and Wall Street is anticipating earnings of $2.90 per share. JPM has a disappointing post-earnings past, with just one of its last eight next-day sessions notching a muted 0.6% gain. Regardless of direction, JPMorgan Chase stock has averaged a 2.4% next-day return, which is lower than the 5% swing options players are pricing in this time around. 

Ahead of the event, at least two analysts have already chimed in with price-target cuts. Specifically, UBS dropped its price objective to $134 from $197, while Citigroup slashed its price target to $135 form $145. Meanwhile, the 12-month consensus target price of $145.04 is a 27.3% premium to current levels, and 10 out of 16 covering brokerages rate JPM a "buy" or better versus six that say "hold" or worse.

The stock was last seen marginally higher, up 0.8% to trade at $113.77. It's been a rough couple of weeks for the security overall, with just two positive sessions in the last 10. The 80-day moving average has weighed on JPMorgan Chase stock all year, most recently capping an early-June rally near the $132 area. Year-to-date, JPM is down 28%.

JPM Chart July 12

While calls are still outnumbering puts overall, there has been an uptick of bearish activity in JPM's options pits. This is per the stock's 50-day put/call volume ratio of 0.55 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 85% of readings from the past year. In other words, there's been a healthier-than-usual appetite for puts lately.

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners