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NEW YORK (TheStreet) -- Shares of JPMorgan Chase  (JPM) - Get JPMorgan Chase & Co. Report fell 1.17% to $61.12 in early afternoon trading Tuesday after Jefferies  (JEF) - Get Jefferies Financial Group Inc. Report reported a 90% drop in its first-quarter profit, a possible sign of what's to come when major banks report earnings next month.

Jefferies, owned by Leucadia National (LUK) , reported profit of $11.7 million for the first quarter 2015, down from $112.4 million in the same period one year earlier. Lower revenue from the company's bond trading and investment banking businesses hurt the profit.

Net revenue fell 34% to $591.7 million. Revenue from the company's fixed income business plunged 56% to $126 million, while revenue from the investment banking business dropped 34% to $272 million.

"We experienced a slow first quarter due to a tepid fixed income trading market and fewer new issues in leveraged finance capital markets," the company said in a statement.

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Separately, TheStreet Ratings team rates JPMORGAN CHASE & CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate JPMORGAN CHASE & CO (JPM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Net operating cash flow has significantly increased by 504.41% to $28,746.00 million when compared to the same quarter last year. In addition, JPMORGAN CHASE & CO has also vastly surpassed the industry average cash flow growth rate of 296.61%.
  • The gross profit margin for JPMORGAN CHASE & CO is currently very high, coming in at 88.82%. 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, JPM's net profit margin of 20.20% significantly outperformed against the industry.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. 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.
  • JPMORGAN CHASE & CO's earnings per share declined by 8.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, JPMORGAN CHASE & CO increased its bottom line by earning $5.29 versus $4.32 in the prior year. This year, the market expects an improvement in earnings ($5.83 versus $5.29).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, JPMORGAN CHASE & CO has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • You can view the full analysis from the report here: JPM Ratings Report