How can investors start off the imminent second-quarter earnings cycle in style? One approach is to add JPMorgan Chase (NYSE:JPM) to your watch list and consider buying a few shares before the company’s earnings announcement. I am bullish on JPM stock and am definitely looking forward to JPMorgan Chase’s latest round of quarterly results.
Banking giant JPMorgan Chase and its CEO, Jamie Dimon, are true power players and market movers. If JPMorgan Chase posts a big quarterly earnings beat, this could set a positive tone for the rest of the earnings cycle.
Of course, an earnings miss is also a possibility, so there’s no need to over-invest in JPMorgan Chase right now. However, if you like to buy the bluest of blue chips, then today is a great day to conduct your due diligence on JPMorgan Chase.
Don’t Lose Sleep Over Fintech Collapse Fears
A year or two ago, a handful of over-leveraged regional banks collapsed, and the next thing you know, some social media gurus were predicting a massive run on the banks. Yet, JPMorgan Chase easily survived and withstood the fear, uncertainty, and doubt.
You might have heard similar chatter about a “fintech collapse” recently. In particular, financial start-up Synapse went bankrupt, and allegedly, there’s missing/unaccounted-for money.
I seriously doubt that this will lead to “contagion” in the banking sector. Even when a few regional banks collapsed a year or two ago, JPMorgan Chase only seemed to get stronger. As I recall, Dimon looked like the market’s savior, as he considered absorbing the assets of faltering banks into JPMorgan Chase.
There’s literally no reason to “stress out” about JPMorgan Chase’s financial fitness, as the company just passed the Federal Reserve’s Dodd-Frank Act Stress Test for 2024. As it turns out, JPMorgan Chase’s standardized Common Equity Tier 1 capital ratio of 15% easily exceeds the regulatory requirement of 11.9%. This suggest that JPMorgan Chase can withstand any reasonably anticipated shock to the financial system.
Besides, JPMorgan Chase isn’t behaving like a bank that’s worried about the future. The company recently hiked its quarterly dividend distribution from $1.15 per share to $1.25 per share. Perhaps this shouldn’t be a huge surprise since JPMorgan Chase has a history of regularly increasing its quarterly dividend distributions. In addition, JPMorgan Chase’s management authorized a $30 billion stock repurchase program, which went into effect on July 1.
JPMorgan Chase’s dividend raise and share buyback announcement demonstrates the company’s commitment to respecting its shareholders. Even beyond that, though, these actions show that JPMorgan Chase is in solid financial health, even if some fearmongers might seek to spread stories of collapse and chaos.
JPMorgan Chase Investors, The Big Day Is Almost Here
JPMorgan Chase is the granddaddy of big U.S. banks, so stock traders will undoubtedly be on the lookout for the company’s upcoming second-quarter 2024 earnings release. It won’t be long now, and the expectations are high, but if any company can come through with a beat-and-raise, it’s JPMorgan Chase.
So, here’s the lowdown. JPMorgan Chase is expected to publish its Q2-2024 financial results on Friday, July 12, before the stock market opens for regular trading hours. It’s an important day for the banking sector, as Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC) are also expected to post their earnings reports on July 12.
Starting with the top-line expectations, the consensus estimate calls for JPMorgan Chase to post second-quarter 2024 revenue of $44.767 billion. That’s not outrageously optimistic since the company posted $41.31 billion in revenue in the year-earlier quarter.
Now, I’ll acknowledge that analysts have high hopes for JPMorgan Chase’s Q2-2024 bottom-line results. In particular, the analysts’ consensus forecast calls for earnings of $5.89 per share. This would represent a 24% year-over-year increase when compared to JPMorgan Chase’s earnings of $4.75 per share in the year-earlier quarter.
Therefore, you’ll certainly want to keep your fingers crossed if you choose to invest in JPMorgan Chase prior to the upcoming quarterly report. That said, if JPMorgan Chase really knocks it out of the park, the entire market might breathe a sigh of relief.
Is JPM Stock a Buy, According to Analysts?
On TipRanks, JPM comes in as a Moderate Buy based on 17 Buys and six Hold ratings assigned by analysts in the past three months. The average JPMorgan Chase stock price target is $214.34, implying 3.15% upside potential.
If you’re wondering which analyst you should follow if you want to buy and sell JPM stock, the most accurate analyst covering the stock (on a one-year timeframe) is Chris Kotowski of Oppenheimer, with an average return of 28.11% per rating and a 100% success rate. Click on the image below to learn more.
Conclusion: Should You Consider JPM Stock?
It’s impossible for me to predict whether JPMorgan Chase will beat analysts’ consensus revenue and earnings predictions. Consequently, I don’t plan to overload my portfolio with shares of JPMorgan Chase.
On the other hand, JPMorgan Chase is a banking giant with a pretty good track record of quarterly EPS beats. Moreover, JPMorgan Chase should be able to withstand financial stress and any perceived financial-sector “collapses” or “contagions.” Thus, I would consider purchasing a few shares of JPM stock in anticipation of an exciting quarterly data release.
