JPMorgan Chase & Co. (JPM) shares ended the last trading session 3.2% higher at $310.11. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 4.8% loss over the past four weeks.
A 25-basis-point interest rate cut and a dovish Fed stance are likely to have turned JPMorgan investors bullish. Also, an upbeat investment banking and markets revenue outlook for the ongoing quarter is a major positive for the company, despite a warning of a steep increase in expenses next year.
This company is expected to post quarterly earnings of $4.90 per share in its upcoming report, which represents a year-over-year change of +1.9%. Revenues are expected to be $45.39 billion, up 6.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For JPMorgan Chase & Co., the consensus EPS estimate for the quarter has been revised 1.2% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on JPM going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
JPMorgan Chase & Co. is part of the Zacks Financial - Investment Bank industry. Wells Fargo (WFC), another stock in the same industry, closed the last trading session 2% higher at $90.69. WFC has returned 3.1% in the past month.
For Wells Fargo, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.66. This represents a change of +16.9% from what the company reported a year ago. Wells Fargo currently has a Zacks Rank of #2 (Buy).
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JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Wells Fargo & Company (WFC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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