Stock (Symbol) |
JP Morgan (JPM) |
Stock Price |
$87 |
Sector |
| Financial |
Data is as of |
| April 27, 2017 |
Expected to Report |
| July 13 |
Company Description |
 JPMorgan Chase & Co. is a financial holding company. The Company is engaged in investment banking, financial services. It operates in four segments, as well as a Corporate segment. The Consumer & Community Banking segment serves consumers and businesses through personal service at bank branches and through automatic teller machines, online, mobile and telephone banking. The Corporate & Investment Bank segment, comprising Banking and Markets & Investor Services, offers investment banking, market-making, prime brokerage, and treasury and securities products and services to corporations, investors, financial institutions, and government and municipal entities. The Commercial Banking segment provides financial solutions, including lending, treasury services, investment banking and asset management. The Asset Management segment comprises investment and wealth management. Source: Thomson Financial |
Sharek’s Take |
 JP Morgan (JPM) has delivered 20% or more profit growth the past two qtrs, and has beaten the street handily the last four qtrs. 2017 profit estimates have increased from $6.51 to $6.55 and $6.69 the past three qtrs. All-in-all JPM is looks pretty good on paper. JP Morgan is the largest bank in the U.S. offering consumer banking, corporate & investment banking, commercial banking and asset management. The stock has an Estimated Long-Term Growth Rate of 6% in addition to a 3% yield. Management also buys back lots of stock. I’m in a spot with this stock, as the Est. LTG of 7% isn’t good enough for the Growth Portfolio, but the Beta of 1.21 means the stock is more volatile than the stock market, thus it’s not a good fit for the Conservative Portfolio. Still, with a P/E of 13 this stock isn’t very expensive and with interest rates trending higher this should be a good choice in the coming years. |
One Year Chart |
 Last qtr profits rose 22% and shot past the 14% estimate as sales grew 6%. Annual profit estimates increased as did qtrly estimates, which now stand at 6%, 8% and 8% and 12%. The P/E of 13 is reasonable. The Est. LTG of 7% is low, but when you add in the 3% yield that makes for a fair 10% estimated total return. |
Fair Value |
 My Fair Value is 14x earnings which gives the stock nice upside if you’re looking out a year or more. |
Bottom Line |
 JP Morgan is doing well, and since it has beaten the street handily the last four qtrs I bet Jamie Dimon will keep that streak going. There’s a lot to like here including the fact profit estimates have been rising. But for me I have a tough time placing it in either of my stock portfolios, thus JPM stays on my radar for the Conservative Portfolio. |
Power Rankings |
Growth Stock Portfolio
N/AAggressive Growth Portfolio N/AConservative Stock Portfolio N/A |
