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6 Bank Stock Picks for Earnings Season From FBR

JPMorgan Chase
Shares of JPMorgan Chase (JPM - Get Report) closed at $42.72 Friday, returning 30% year to date, following a 20% decline in 2011.

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The shares trade for 1.3 times tangible book value and for eight times the consensus 2013 earnings estimate of $5.59 a share. The consensus 2012 EPS estimate is $4.96.

Based on a quarterly payout of 30 cents, the shares have a dividend yield of 2.81%.

JPMorgan reported first-quarter earnings on a managed basis of $5.38 billion, or $1.31 a share, soundly beating the consensus estimate of $1.18. The bank saw a strong recovery in trading revenue, to $4.66 billion in the first quarter, compared to $2.49 billion during a very difficult fourth quarter. Trading revenue was still down 8% year over year.

JPMorgan also reported very strong first-quarter mortgage revenue of $2.01 billion, up from $725 million in the fourth quarter and a loss of $487 million during the first quarter of 2011.

Miller rated JPMorgan outperform with a $50 price target, and said on April 16 that the company's first-quarter results were "relatively in line with expectations given the tailwinds from noninterest income and slow loan growth in what is seasonally the weakest quarter," adding that "the dramatically higher principal transactions net revenue was a welcome development given the poor results we have seen the past two quarters."

Miller also said that "overall, the core business lines continue to produce decent results while we deal with sluggish economic growth, and the company remains one of the best positioned to take advantage of a more robust recovery once the fog clears."

FBR estimated that JPMorgan Chase will earn $4.83 a share this year, followed by 2013 EPS of $5.70.

Interested in more on JPMorgan Chase? See TheStreet Ratings' report card for this stock.

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