Investors Heavily Search JPMorgan Chase & Co. (JPM): Here is What You Need to Know

JPMorgan Chase & Co. (JPM) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Shares of this company have returned -0.1% over the past month versus the Zacks S&P 500 composite's +1.3% change. The Zacks Financial - Investment Bank industry, to which JPMorgan Chase & Co. belongs, has gained 0.4% over this period. Now the key question is: Where could the stock be headed in the near term?Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.For the current quarter, JPMorgan Chase & Co. is expected to post earnings of $3.82 per share, indicating a change of -3.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.The consensus earnings estimate of $17.62 for the current fiscal year indicates a year-over-year change of +8.6%. This estimate has remained unchanged over the last 30 days.For the next fiscal year, the consensus earnings estimate of $16.77 indicates a change of -4.8% from what JPMorgan Chase & Co. is expected to report a year ago. Over the past month, the estimate has changed +0.5%.With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for JPMorgan Chase & Co.The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:12 Month EPSProjected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.For JPMorgan Chase & Co. the consensus sales estimate for the current quarter of $40.24 billion indicates a year-over-year change of +4.3%. For the current and next fiscal years, $174.79 billion and $167.22 billion estimates indicate +10.6% and -4.3% changes, respectively.Last Reported Results and Surprise HistoryJPMorgan Chase & Co. reported revenues of $42.65 billion in the last reported quarter, representing a year-over-year change of +7%. EPS of $4.37 for the same period compares with $4.33 a year ago.Compared to the Zacks Consensus Estimate of $41.06 billion, the reported revenues represent a surprise of +3.87%. The EPS surprise was +8.71%.The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.JPMorgan Chase & Co. is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about JPMorgan Chase & Co. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.Free Report: 5 Clean Energy Stocks with Massive UpsideEnergy is the backbone of our economy. It’s a multi-trillion dollar industry that has created some of the world’s largest and most profitable companies.Now state-of-the-art technology is paving the way for clean energy sources to overtake “old-fashioned” fossil fuels. 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