Buy Recommendation Reiterated For JPMorgan Chase & Co

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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 solid stock price performance, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, JPM's share price has jumped by 35.48%, exceeding the performance of the broader market during that same time frame. 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.
  • Net operating cash flow has significantly increased by 259.53% to $26,577.00 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 17.84%.
  • The gross profit margin for JPMORGAN CHASE & CO is currently very high, coming in at 92.77%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -1.48% is in-line with the industry average.
  • JPM, with its decline in revenue, underperformed when compared the industry average of 13.4%. Since the same quarter one year prior, revenues slightly dropped by 8.3%. 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. JPMorgan Chase has a market cap of $209.8 billion and is part of the financial sector and banking industry. The company has a P/E ratio of 13.00, below the S&P 500 P/E ratio of 18.00. Shares are up 27.5% year to date as of the close of trading on Friday.

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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

null

More from Markets

Jim Cramer on Earnings: All Stories Aren't Equal

Jim Cramer on Earnings: All Stories Aren't Equal

Stocks Seek Direction Amid a Rise in Bond Yields, Strong Earnings

Stocks Seek Direction Amid a Rise in Bond Yields, Strong Earnings

4 Stocks Making Important Moves Wednesday

4 Stocks Making Important Moves Wednesday

Dow Futures Turn Positive After Boeing Earnings Blowout; Twitter Boosts Nasdaq

Dow Futures Turn Positive After Boeing Earnings Blowout; Twitter Boosts Nasdaq

Facebook, Boeing, Shire and Credit Suisse - 5 Things You Must Know

Facebook, Boeing, Shire and Credit Suisse - 5 Things You Must Know