Dimon and the company have been straightforward in saying this is a beatable form of cancer. Cramer says those who are selling the stock should be aware of similar cases, such as Andrew Grove at Intel (INTC), Robert Benmosche at AIG (AIG) and Warren Buffett at Berkshire Hathaway (BRK.B). Each of those figures said they had treatable forms of cancer, which "is not something you can just kind of blithely say," according to Cramer.
All three of those stocks went up not long after the news broke, as investors realized the truth about the curable cancers. Therefore, Cramer says he would not sell J.P. Morgan in the wake of the Dimon news.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The gross profit margin for JPMORGAN CHASE & CO is currently very high, coming in at 88.15%. Regardless of JPM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 20.99% trails the industry average.
- JPMORGAN CHASE & CO's earnings per share declined by 19.5% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, JPMORGAN CHASE & CO reported lower earnings of $4.32 versus $5.19 in the prior year. This year, the market expects an improvement in earnings ($5.38 versus $4.32).
- JPM, with its decline in revenue, slightly underperformed the industry average of 2.7%. Since the same quarter one year prior, revenues slightly dropped by 9.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Net operating cash flow has decreased to $14,667.00 million or 26.53% when compared to the same quarter last year. Despite a decrease in cash flow JPMORGAN CHASE & CO is still fairing well by exceeding its industry average cash flow growth rate of -42.15%.
- You can view the full analysis from the report here: JPM Ratings Report
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