Trending Stocks of the Week! Boeing and JP Morgan Make Headlines

In this digital age, the concept of ‘trending’ has become a common notion, and stocks are no exception. Using the TipRanks Trending Stocks Tool, we can track stocks that are trending among Wall Street Analysts – meaning they have been recently gaining attention and a high number of analyst ratings. Usually tied to an exciting news release, or the latest earnings report, it is worth taking a closer look at these companies and what has Wall Street buzzing about them.

Today we are taking a closer look at two stocks that are some of the “Most Rated” in the last week – Boeing (BA) and JP Morgan Chase (JPM) Let’s see what has analysts talking about these companies.

Boeing

Boeing (BA) has made several headlines this past week, and not for positive reasons. Throughout the year, they have been continually battling safety concerns regarding their 737 Max Jets. On January 5^th, a door plug for the fuselage of a Boeing 737 Max 9 fell off during an Alaska Airlines ascent. This led to the Federal Aviation Administration (FAA) announcing they were opening an investigation, and would be increasing their oversight on Boeing production and manufacturing. In the days following, Wells Fargo analyst Matthew Akers downgraded the firms rating on the BA stock from a Buy to a Hold. The analyst noted that with the FAA taking a closer look into Boeing’s production, the risk of a delivery impact increases significantly.

Just as news of the downgraded rating was being digested, Boeing made yet another headline when two of their planes collided at the Chicago O’Hare Airport. While the collision was minor, and occurred during taxiing with no related injuries, it was yet another negative headline that Boeing did not need.

Today, Boeing did finally see positive news as India’s Akasa Air just announced they would be ordering 150 Boeing 737 Max planes, seemingly expressing their confidence in the aerospace company.

The BA stock had been climbing into December, following news of a $52B order from the Emirates, but since Dec 15^th, have fallen over 23%. In the last 7 days, 9 analysts have reiterated their ratings on the Boeing stock. While 7 analysts did maintain a Buy rating, several did decrease their price targets.

One analyst weighing in on the stock is Cai von Rumohr, from TD Cowen. He did maintain a Buy rating with a Price Target of $275, commenting “full implications of the Alaska Air incident are unclear. We think it will result in tighter oversight of BA production with headwinds to BA’s 2024 results… We reiterate our PT of $275, but expect the stock to drift until the extent of the MAX 9 fallout comes into better focus”. The firms Price Target of $275 would imply upside of 35% from current prices.

The Boeing stock is currently rated a Strong Buy based on 23 Analyst Ratings, with an Average Price Target of $267.37 implying upside potential of 29%.

JP Morgan Chase

JP Morgan Chase (JPM) has also been making headlines this past week, as the finance behemoth kicked off earnings season. They reported Q4 earnings that missed expectations; however, this was due to a $2.9 billion dollar fee that was part of the FDIC’s special assessment related to failed regional banks last year. Earnings Per Share of $3.04 fell short of the $3.35 expected; the FDIC fee accounted for a $0.74 EPS decrease.

JP Morgan was certainly not the only reporting bank that was affected by these FDIC fees. Other big banks such as Wells Fargo, Bank of America, and Citigroup have recorded charges in this regard, slightly obscuring their reported results.

Shadowed by the earnings miss is the fact that JP Morgan Chase reported their most profitable year ever. Benefiting from higher interest rates, their net profits for the year were $49.6B. Impressively, this figure is the most ever in the history of American banking.

With their Q4 results, Jamie Dimon, Chairman and CEO, commented “Our record results in 2023 reflect over-earning on both NII and credit, but we remain confident in our ability to continue to deliver very healthy returns even after they normalize… The U.S. economy continues to be resilient, with consumers still spending, and markets currently expect a soft landing.”

Within the past 7 days, 11 analysts have weighed in on the JPM stock with 9 Buy ratings and 2 Holds. BMO Capital analyst, James Fotheringham, did raise his Price Target on the JPM stock, but maintained a Hold rating. He says ‘the company’s higher-than-previously modeled net interest income is more than offset by higher expected operating expenses, lower CIB revenues, higher credit costs, and lower buybacks. JPMorgan will be a long-term market share gainer among U.S. banks, but it is too early to buy shares before the credit cycle has even begun.’

Shares of JPM remain fairly flat over the past 5 days, and have seen gains of 15% over the past 3 months. Overall, the stock is rated a Moderate Buy with a Price Target of $186.40, implying upside potential of 12.05% from current prices.

In Conclusion

Both Boeing and JP Morgan have been trending with Wall Street Analysts in the past 7 days. Boeing has been facing many hurdles but has still seen several analysts maintain Buy ratings with bullish outlooks for the future. After a challenging start to 2024, investors will be watching to see if BA can turn things around. While JP Morgan may have fallen short on earnings expectations, it can be understood when looking closer at the FDIC charges included. Overall, record profits bode strongly for the banking giant and many analysts have reiterated their Buy ratings. Investors can keep an eye on TipRanks Trending Stocks to see which stocks gain the spotlight next.