Trade-Ideas: JPMorgan Chase (JPM) Is Today's "Barbarian At The Gate" Stock
Trade-Ideas LLC identified
(
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified JPMorgan Chase as such a stock due to the following factors:
- JPM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $805.2 million.
- JPM has traded 16.2 million shares today.
- JPM traded in a range 211.1% of the normal price range with a price range of $2.32.
- JPM traded above its daily resistance level (quality: 19 days, meaning that the stock is crossing a resistance level set by the last 19 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on JPM:
JPMorgan Chase & Co. operates as a financial services company worldwide. It operates through Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset Management segments. The stock currently has a dividend yield of 2.9%. JPM has a PE ratio of 1. Currently there are 13 analysts that rate JPMorgan Chase a buy, 1 analyst rates it a sell, and 4 rate it a hold.
The average volume for JPMorgan Chase has been 16.2 million shares per day over the past 30 days. JPMorgan Chase has a market cap of $225.5 billion and is part of the financial sector and banking industry. The stock has a beta of 1.21 and a short float of 0.7% with 1.94 days to cover. Shares are down 6.6% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates JPMorgan Chase as a
. The company's strengths can be seen in multiple areas, such as its expanding profit margins and attractive valuation levels. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 2.6%. Since the same quarter one year prior, revenues slightly dropped by 2.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The gross profit margin for JPMORGAN CHASE & CO is currently very high, coming in at 84.27%. 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 21.72% trails the industry average.
- The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and the Commercial Banks industry average. The net income has decreased by 6.7% when compared to the same quarter one year ago, dropping from $5,914.00 million to $5,520.00 million.
- JPMORGAN CHASE & CO's earnings per share declined by 6.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, JPMORGAN CHASE & CO increased its bottom line by earning $5.99 versus $5.28 in the prior year. For the next year, the market is expecting a contraction of 5.8% in earnings ($5.64 versus $5.99).
- You can view the full JPMorgan Chase Ratings Report.
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