JPMorgan Upgraded by TSC Ratings

TheStreet.com's stock-rating model upgraded JPMorgan (JPM Quote) to "buy."

The numbers: Third-quarter net income surged 581% to $3.6 billion and earnings per share swung from negative 6 cents to positive 80 cents. Revenue grew 31% to $30 billion. Its gross margin rose from 39% to 61% and its operating margin increased from 5% to 34%. The company is adequately capitalized, with $252 billion of cash. A debt-to-equity ratio of 4.2 reflects excessive leverage.

The stock: JPMorgan has risen 49% this year, outpacing major U.S. indices. The stock trades at a price-to-earnings ratio of 39, indicating a premium to the market, but parity with financial service peers. Shares pay a 0.4% dividend yield.

JPMorgan 52-Week Stock Performance

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