Should Investors Buy JPMorgan Stock Ahead of Q3 Earnings?

JPMorgan Chase JPM will kickstart third quarter results from big banks this week as investors look for insight into the effect rate cuts will have on the broader banking industry.To that point, banks can experience benefits and drawbacks from interest rate cuts with loan demands likely to rise although profit margins might decrease.That said, let’s see if it’s time to buy JPMorgan’s stock ahead of its Q3 earnings report on Friday.JPM Q3 Expectations Based on Zacks estimates, JPMorgan’s Q3 sales are expected to be up 3% to $41.01 billion. However, Q3 earnings are thought to have decreased 7% to $4.02 per share versus EPS of $4.33 in the prior-year quarter.Notably, JPMorgan has surpassed the Zacks EPS Consensus for eight consecutive quarters posting an average earnings surprise of 8.38% in its last four quarterly reports.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Image Source: Zacks Investment ResearchJPM’s Earnings Estimate OutlookLooking forward, JPMorgan’s top line is now projected to expand 9% in fiscal 2024 to $172.47 billion although FY25 sales are expected to dip -2%. On the bottom line, 3% EPS growth is expected in FY24 with annual earnings forecasted to be virtually flat next year at $16.72 per share.Image Source: Zacks Investment ResearchJPM’s Stock Performance & ValuationAttributed to its strong market position and financial performance, JPMorgan’s stock has risen over +20% year to date which has edged the benchmark S&P 500 and big bank peers Bank of America BAC, Citigroup C, and Wells Fargo WFC.Image Source: Zacks Investment ResearchDespite soaring over +100% in the last two years, JPM still trades at 12.6X forward earnings and roughly on par with Bank of America, and their Zacks Banks-Major Regional Industry average. JPM does trade at a slight earnings premium to Wells Fargo and Citigroup but is at a significant discount to the benchmark’s 24.1X forward P/E multiple.Image Source: Zacks Investment ResearchBottom LineAhead of its Q3 report, JPMorgan’s stock lands a Zacks Rank #3 (Hold). While it will be important to monitor JPMorgan’s profit margins amid a deflationary environment, holding on to JPM at current levels could certainly be rewarding.Furthermore, there could be more upside in JPM if the banking giant can reach or exceed Q3 expectations and quite any probability fears while giving a positive outlook especially as it pertains to higher loan volumes.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Bank of America Corporation (BAC): Free Stock Analysis Report Wells Fargo & Company (WFC): Free Stock Analysis Report Citigroup Inc. (C): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks