JPMorgan Chase is expected to release its Q2 earnings in one week from now. The market is bullish, although the stock price is trading close to previous highs.
The earnings season is upon us once again, with the financial services giants among the first American corporations to release their quarterly earnings. JPMorgan’s stock price is trading with a bullish tone, fuelled by accommodative fiscal and monetary measures in the United States and strong financial performance.
JPMorgan is a diversified bank active in the financial sector. It is also one of America’s oldest corporations, founded in 1799 by the iconic Morgan family. Nowadays, it employs close to 250,000 people across the globe. Headquartered in New York, it recently bought a 40% stake in C6 Bank, active in Brazilian retail banking.
The stock price is up over 20% YTD and over 60% in the last year. JPMorgan is a dividend-paying company with strong financial performance that stands to benefit from the upcoming monetary policy tightening.
The entire financial system performs better when interest rates are above their lows. As the United States recovers from the pandemic, strong growth may lead to the Federal Reserve raising the rates sooner than the market expects.
Analysts Favour Buy Ratings
Of the thirty-six analysts covering JPMorgan stock price, the vast majority of them have issued buy ratings (28). The future estimates for the JPMorgan stock price are above the current price, with the highest of $200 belonging to Wells Fargo.
JPMorgan Stock Price Pushed Higher By Strong Financial Performance
JPMorgan’s revenue growth is higher than the sector’s median – 15.90% vs. 9.81%. The difference to the sector, therefore, is 62.03% and it reflects how the company outperforms its rivals.
The company has beaten earnings expectations in the last three quarters and the sentiment is that it will do so again this time around. The market expects the Earnings Per Share (EPS) to increase 182.42% on the year.