JPMorgan Chase & Co Stock Buy Recommendation Reiterated (JPM)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

NEW YORK ( TheStreet) -- JPMorgan Chase (NYSE: JPM) has been reiterated by TheStreet Ratings as a buy with a ratings score of B- . The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass

Highlights from the ratings report include:
  • JPM's revenue growth has slightly outpaced the industry average of 2.8%. Since the same quarter one year prior, revenues slightly increased by 2.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 37.25% and other important driving factors, this stock has surged by 38.24% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, JPM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • JPMORGAN CHASE & CO has improved earnings per share by 37.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. 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 ($5.07 versus $4.47).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Diversified Financial Services industry. The net income increased by 33.9% when compared to the same quarter one year prior, rising from $4,262.00 million to $5,708.00 million.
  • The gross profit margin for JPMORGAN CHASE & CO is currently very high, coming in at 84.00%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 20.53% is above that of the industry average.

JPMorgan Chase & Co., a financial holding company, provides various financial services worldwide. JPMorgan Chase has a market cap of $165.28 billion and is part of the financial sector and banking industry. The company has a P/E ratio of 9.2, below the S&P 500 P/E ratio of 17.7. Shares are up 30.8% year to date as of the close of trading on Tuesday.

You can view the full JPMorgan Chase Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

HOLIDAY SPECIAL: Let Jim Cramer show you every trade he is making in his $2.5 Million portfolio. Join now for 14-days FREE. Sign up today to get e-mail alerts before every trade
null

If you liked this article you might like

These Powerful Corporate Executives Could Make a Run at the Presidency in 2020

PayPal CEO Reveals How Silicon Valley Could Repair Its Broken Culture

How JPMorgan Is Helping Businesses Escape the Prison of Paper Checks

JPMorgan CEO Jamie Dimon Attacks Bitcoin Again

SEC's Cyber-Gaffe Highlights Risk of Trump Budget Cuts at Agency