JPMorgan Chase & Co. (NYSE: JPM) is scheduled to release its first-quarter financial results before the markets open on Friday. The consensus estimates are calling for $2.35 in earnings per share (EPS) and $28.45 billion in revenue. The same period of last year reportedly had $2.37 in EPS and $28.52 billion in revenue.
Excluding Thursday’s move, JPMorgan had underperformed the broad markets, with its stock up only 8% year to date. Over the past 52 weeks, the stock was actually down 6%.
There is a market adage that a rising tide lifts all ships. In short, a rising stock market is supposed to lift all stocks. However, it doesn’t always work out that way, and sometimes the performance metrics look quite different. JPMorgan is supposed to be the best of the largest banks in America, with a fortress balance sheet with total assets of about $2.6 trillion and excellent credit metrics for the bank itself and for its customers. Unfortunately, CEO Jamie Dimon’s bank so far has handily underperformed the largest bank holding companies during the 2019 rally. Its underperformance also may be a slight drag on the Dow Jones industrial average.
While a stock may be underperforming over a certain period, one simple explanation may be that JPMorgan generally is considered to be the safest of all the big banks today. And, like it or not, big market rallies tend very frequently to lift weaker stocks more than the stable giants. However, weaker companies tend to fall more than the stable companies when the markets are in a major sell-off as well.
A few analysts weighed in on JPMorgan ahead of the report:
- HSBC has a Neutral rating with a $102 price target.
- BMO has a Market Perform rating and a $116 price target.
- Barclays has a Buy rating with a $140 price target.
- Wells Fargo has an Outperform rating and a $130 price target.
- Morgan Stanley has an Overweight rating with a $124 target.
Shares of JPMorgan were last seen up less than 1% at $106.14, in a 52-week range of $91.11 to $119.24. The consensus price target is $115.48.