JPMorgan Chase has received a "Buy" rating from 22 analysts. But what does this consensus really mean? Analysts often use a mix of technical analysis, which involves examining price momentum, patterns, and trends from historical data, to gauge market sentiment and predict future value. Let's delve into some technical aspects of JPMorgan. The company has a net profit margin of just 0.34%, indicating that even a slight drop in revenue could wipe out profits, leading to a net loss. This margin is significantly below average. Similarly, its net operating margin stands at 0.51%, meaning for every $100 in revenue, only $0.51 is operating income. These figures suggest JPMorgan might need to rethink its competitive strategy to improve profitability.
Key Takeaways
JPMorgan Chase's stock is currently experiencing a challenging phase, with a Price Action Indicator of -0.59 suggesting potential downward pressure. However, the Accumulation Distribution value of 0.02 indicates that there might be some underlying buying interest, hinting at a possible rebound.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of JPMorgan Chase Co. In general, sophisticated investors focus on analyzing JPMorgan Chase stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build JPMorgan Chase's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of
JPMorgan Chase's intrinsic value. In addition to deriving basic predictive indicators for JPMorgan Chase, many experienced traders also check how macroeconomic factors affect JPMorgan Chase price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
How important is JPMorgan Chase's Liquidity
JPMorgan Chase
financial leverage refers to using borrowed capital as a funding source to finance JPMorgan Chase Co ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. JPMorgan Chase financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to JPMorgan Chase's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of JPMorgan Chase's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between JPMorgan Chase's total debt and its cash.
JPMorgan Chase Gross Profit
JPMorgan Chase Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing JPMorgan Chase previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show JPMorgan Chase Gross Profit growth over the last 10 years. Please check JPMorgan Chase's
gross profit and other
fundamental indicators for more details.
Closer look at JPMorgan Chase Variance
JPMorgan Chase Co has current Variance of 2.29. Variance is another measure of security risk that shows the amount of dispersion of equity returns around their mean value. Variance is calculated as the average squared deviations from the mean. Evaluating a set of investment alternatives one can use variance to help determine the volatility when purchasing a specific security. Similar to Standard Deviation, the variance is a measure of how far a set of numbers is spread out around its mean.
Variance is also a measure of stock volatility and can help determine the risk an investor might take on when purchasing a specific security. A relatively big variance indicates that the daily prices or returns are far from the mean and a small variance indicates that they are located around the mean.
Variance | = | SUM(RET DEV)2N |
| = | 2.29 |
| SUM | = | Summation notation |
| RET DEV | = | Actual returns deviation over selected period |
| N | = | Number of points for the period |
Let's now compare JPMorgan Chase Variance to its closest peers:
| JPM | 2.290707601842977 |
| NU | 6.19 |
| BMO | 2.05 |
In the realm of finance, patience often yields the best returns. As we look at JPMorgan Chase's current technical indicators, the stock is trading near its 200-day moving average of 195.58, suggesting a potential pivot point. With a beta of 1.1, the stock exhibits moderate volatility, aligning closely with market movements. Despite a slight dip in momentum, reflected by a period momentum indicator of -0.58, the bank's robust net income of 49.55 billion and a payout ratio of 28.62% provide a solid foundation for potential recovery. Investors should weigh these factors carefully, as the stock's proximity to its Wall Street target price of 214.45 could signal a rebound opportunity..
JPMorgan Chase is epected to finish above $209 in November
JPMorgan Chase's stock is showing encouraging signs as we move into November, with its value at risk dropping to -2.37. This decline in risk suggests a more stable investment climate for the bank, potentially setting the stage for the stock to surpass the $209 mark. For investors, this could be a positive indicator, as the reduced risk implies fewer uncertainties are being factored into the market's view of JPMorgan Chase, aligning with optimistic forecasts for the coming month. The stock exhibits relatively low volatility, with a skewness of -0.88 and kurtosis of 2.18. Understanding these volatility trends can help investors make informed decisions, as volatility indicators allow traders to assess JPMorgan Chase's stock risk in relation to market fluctuations during both rising and falling markets.
Our Final Perspective on JPMorgan Chase
When is the right time to buy or sell JPMorgan Chase Co? Buying stocks such as JPMorgan Chase isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
To conclude, as of the 11th of October 2024, we believe that at this point, JPMorgan Chase is very steady with
very low odds of distress within the next 2 years. From a slightly different point of view, the entity appears to be
fairly valued. Our latest 90 days buy-sell recommendation on the firm is
Strong Hold.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of JPMorgan Chase Co. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
[email protected]