NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, notable return on equity and attractive valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The gross profit margin for JPMORGAN CHASE & CO is currently very high, coming in at 79.10%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 15.30% is above that of the industry average.
- 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 Diversified Financial Services 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.
- JPMORGAN CHASE & CO's earnings per share declined by 19.6% 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 $4.47 versus $3.96 in the prior year. This year, the market expects an improvement in earnings ($4.63 versus $4.47).
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 23.7%. Since the same quarter one year prior, revenues fell by 17.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
JPMorgan Chase & Co., a financial holding company, provides various financial services worldwide. The company has a P/E ratio of 8.2, equal to the average banking industry P/E ratio and below the S&P 500 P/E ratio of 17.7. JPMorgan Chase has a market cap of $138.84 billion and is part of the
industry. Shares are up 12.4% year to date as of the close of trading on Monday.
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