May 24, 2022
[2 min Read]
JPMorgan Chase & Co. (NYSE: JPM) is due to report earnings before the market opens. And at this point, any bit of good news would have a calming effect on markets. With that in mind, JPMorgan Chase & Co. may be the right company at the right time.
The company is expected to deliver revenue that's in line with analysts' expectations of approximately $119.54B. However, right now it's all about earnings. And the good news for investors is that JPMorgan Chase & Co. is expected to post earnings per share of $3.74.
The answer is it may not calm them down, but it may act as a shot of novocaine. The markets hate uncertainty. And while JPMorgan Chase & Co. only addresses one sector of the market, it could give investors a measure of certainty.
JPM stocks are being repriced across the board. It's about 7.32% from its highs. But this may be giving opportunistic and risk-tolerant investors a second chance to grab shares at a more favourable price.
JPMorgan Chase & Co. has an attractive valuation with a price-to-earnings (P/E) ratio of just over 10.64 as of this writing. And the company's earnings and revenue are expected to post strong gains over the next five years. Plus, investors shouldn't ignore the dividend which currently pays $4.05 annually.
JPMorgan Chase & Co. is becoming one of the leaders in the emerging sector of Banks—Diversified. It leads in capital markets, investment banking, credit cards and consumer banking and has produced superior growth, operating efficiency and returns since the financial crisis. Its shares still trade at premium valuations to other banks.
My short answer is yes. But it's up to you to decide if the risk is worth it for you. However, at the very least you should put JPM stock on your watchlist. The stock may have further fall. Now isn't the time to get reckless. Still, it does appear that this is a case of market repricing, not re-evaluating the company and its stock. And if that's the case then JPM stock remains a solid choice for long-term, value-minded investors who can use this sell-off as a chance to buy shares at a more attractive price.