JPMorgan Chase & Co. (NYSE: JPM) is scheduled to report its third-quarter financial results after the markets close on Tuesday. According to Thomson Reuters, the consensus estimates are $1.37 in earnings per share (EPS) on $23.69 billion in revenue. In the same period of the previous year, the banking giant posted EPS of $1.36 and $25.16 billion in revenue.
This stock trades at a very low 10.6 times estimated 2015 earnings. JPMorgan is expected to benefit from commercial loan growth and an upturn in capital spending. Wall Street analysts agree that the stock seems attractively valued on 2015 estimated price to earnings and a very solid price-to-book value. Some on Wall Street have cautioned that last year’s divestiture of the physical commodities business could provide an earnings headwind throughout this year.
Improvement in loan growth, terrific equity capital markets and a steady increase in deposits will be a solid plus. Trading at a discount to many of the large cap banks on 2015 earnings estimates helps upside potential as well. With $2.6 trillion in assets on a worldwide basis, and one of Wall Street’s savviest leaders in Jamie Dimon, the stock is a solid buy for investors.
Prior to the earnings being released, a few analysts weighed in on JPMorgan:
- Jefferies reiterated a Buy rating and lowered its price target to $71 from $78.
- Citigroup reiterated a Buy rating and lowered the price target to $70 from $78.
- Nomura has a Buy rating and lowered its price target to $70 from $72.
- Deutsche Bank reiterated a Buy rating.
- Credit Suisse reiterated an Outperform rating with a $75 price target.
So far in 2015, JPMorgan has remained relatively flat, with the stock up only about 1.3%, while over the past 52 weeks shares were up 8.3%.
Shares of JPMorgan were up 0.4% at $61.94 late Tuesday morning. The stock has a consensus analyst price target of $73.25 and a 52-week trading range of $50.07 to $70.61.
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