Knowing facts before you bet on it

JPMorgan Chase & Co. (JPM) has recently been one of the most sought stocks on Zacks.com. Perhaps you would like to see some of the facts that could affect the performance of the stock at short notice.

The shares of this company returned +12.8% to the Zacks S&P 500 Composite's +12.7% change last month. The Zacks Financial Investment Bank industry, which belongs to JPMorgan Chase & Co., has increased 18% during this period. Now the main question is: where could the inventory be directed at short notice?

While media publications or rumors about a significant change in the business prospects of a company usually carry out its shares as a “trend” and lead to an immediate change in price, there are always some basic facts that ultimately dominate the purchase and hate decision finding.

Instead of concentrating on anything else, we prioritize the evaluation of the change in the profit projection of a company at Zacks. This is due to the fact that we believe that the current value for its shares is determined by the cash value of his future profit current.

We essentially take a look at how analysts that cover the shares reveal their profit estimates in order to reflect the effects of the latest business trends. And if the profit estimates for a company rise, the current value for its shares increases. A higher atmosphere to be used than the current market price gives investors the interest for buying the share, which leads at a higher price. For this reason, empirical research shows a strong correlation between trends in the revisions of the yield estimate and short -term share price movements.

JPMorgan Chase & Co. is expected to make a profit of $ 4.45 per share in the current quarter, which corresponds to a change of +1.1%compared to the previous year. The Zacks consensus estimate has changed +0.3%in the last 30 days.

For the current fiscal year, the consensus estimate of $ 18.34 refers to a change of -7.1% compared to the previous year. This estimate has changed +0.5%in the last 30 days.

For the next financial year, the consensus estimate of $ 19.26 shows a change of +5% compared to what JPMorgan Chase & Co. is expected a year ago. In the past month the estimate has changed +0.4%.

With an impressive externally tested track balance sheet, our proprietary stock assessment tool and the Zacks-Rank-Rank-Rank-Rank-Rank is more conclusive for the short-term price-performance of a share, since it effectively uses the power of the profit assessment revisions. The size of the recent change in the consensus estimate and three other factors in connection with the profit estimates has a Zacks rank #3 (hold) for JPMorgan Chase & Co.