| Stock (Symbol) | Stock Price | |
JP Morgan (JPM) |
$56 |
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| Data is as of | Expected to Report | Sector |
July 29, 2013 |
10/8 – 10/12 |
Financial |
| Sharek’s Take | ||
 JP Morgan is perfect for the 2013: The Year of the Safe Stocks. It pays a dividend, is undervalued, and is going up like the rst of the safe stocks are. In May I felt JPM was going to go from $50 to $62, and now its half way there. The company just beat estimates by 20 cents and guided 2013 estimates higher, and this will fuel the engine towards $60 even though future quarterly estimates don’t look great (4% profit growth on avg).I wish to be clear: this is not a normal David-Sharek buy-and-hold stock. Look at the ten-year chart. JPM went back and forth like a heart monitor, and profits during the decade were back-and-forth as well. I got JPM because it had huge upside and was going higher. Once the run-is-done I will likely-be-gone. |
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| One-Year Chart | ||
 The big thing that stands out to me in the one-year chart is this stock has a P/E of only 9. Microsoft (MSFT) had a P/E of 9 earlier in the year and then the stock shot up until the P/E reached 12. I feel JPM has a move like that ahead for itself. The breakout point is $51 and JPM is currently $50. |
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| Earnings Table | ||
 Last quarter JPM’s revenue jumped a solid 13%, but for the year revenue is expected to be down slightly compared to last year. Profits jumped a solid 32% last quarter, the stock didn’t move on the news.JPM continues to beat earnings estimates by a wide margin. Now that rates have risen, the company should continue to prosper. Annual Profit Estimates have jumped higher. Quarterly estimates don’t look great after next quarter. Again, this isn’t a growth stock. Still, I feel JPM is due to make a solid move higher. It’s just too cheap. |
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| Fair Value | ||
 As you can clearly see in JPM’s profit history, the stock’s sold for 11 times earnings many times during the past decade. I feel 11 times earnings is JPM’s Fair Value. There’s still 17% upside this year. This stock should be in the mid-$60s before long — and you get paid 2% to wait. |
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| Ten-Year Chart | ||
 Notice JPM just broke out past resistance at $55. This move past $55 is solid and the stock is now running higher. The trend is your friend, so stick with JPM. Also note in 2003 the company made $3.24 and now it could make double that. The stock should be around double that ($35) as well. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
8 of 21 |
JP Morgan continues to push higher, but quarterly estimates aren’t great and I feel JPM is just going higher because the market/financials are. The stock is still undervalued and is working its way to the $60s where it should be. JPM is ranked 8th of 21 stocks in the Growth Portfolio Power Rankings. I put it high here because there’s a solid degree of safety with this stock. JPM ranks 6th of 13 stocks in the Aggressive Growth Portfolio, where I’m just using the stock for a trade. |
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Aggressive Growth Portfolio
9 of 22 |
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