JP Morgan Chase & Co. (NYSE:JPM) is in the spotlight Monday ahead of fourth-quarter earnings on Tuesday before the market opens.
Earnings Preview: Expectations And Third-Quarter Results
JP Morgan is expected to report earnings per share of $4.95 and revenue of $46.20 billion.
For the prior quarter, JP Morgan reported earnings per share of $5.07, beating the consensus estimate of $4.84. In addition, the company reported revenue of $47.12 billion, beating the consensus estimate of $45.39 billion.
“While there have been some signs of a softening, particularly in job growth, the U.S. economy generally remained resilient. However, there continues to be a heightened degree of uncertainty stemming from complex geopolitical conditions, tariffs, and trade uncertainty, evaluated asset prices and the risk of sticky inflation. As always, we hope for the best, but these complex forces reinforce why we prepare the Firm for a wide range of scenarios,” said Jamie Dimon, Chairman and CEO of JP Morgan, in its third quarter earnings report.
Analyst Changes: Ahead of the earnings report, multiple analysts issued price target adjustments.
- Barclays analyst Jason Goldberg maintained an Overweight rating on JPMorgan and raised the price target from $342 to $391.
- Truist Securities analyst John McDonald maintained a Hold rating on JPMorgan and raised the price target from $330 to $331.
JPMorgan’s Technical Picture
JPMorgan is currently showing a mixed technical picture with the stock trading just below its 20-day simple moving average (SMA) but above the longer-term averages. The 20-day SMA is at $323.61, and the stock is trading 0.7% below this level, while it remains 2.2% above the 50-day SMA, indicating some short-term weakness but overall strength in the longer trend.
The RSI is currently at 59.11, which is in neutral territory, suggesting that the stock is neither overbought nor oversold. This level indicates that while momentum is present, there is still room for further upside without hitting overbought conditions.
MACD is above its signal line, indicating bullish momentum in the stock. This suggests that traders could expect continued upward pressure, especially if the stock can regain its footing above the 20-day SMA.
Key support is at $320.50, while resistance is at $322.50. If the stock breaks below support, it could signal a potential trend reversal, whereas a move above resistance might lead to further gains.
The stock has been performing well over the past year, with a 12-month return of 34.80%. This strong performance reflects a solid long-term trend, especially as the stock has recently reached a 52-week high of $337.25.
Currently, the stock is positioned at 88.3% of its 52-week range, indicating it’s near its highs. This positioning suggests that while the stock has been strong, traders should be cautious of potential pullbacks as it approaches these elevated levels.
Overall, the technical setup suggests that traders should watch for a potential bounce off support or a breakout above resistance. Maintaining a close eye on the moving averages and momentum indicators will be key in navigating the next moves for JPM.
JPM Price Action: At the time of writing, JP Morgan shares are trading 2.18% lower at $322.03, according to data from Benzinga Pro.
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