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The biggest banks in the US have kicked off the second-quarter earnings season for 2023. Learn more about JP Morgan’s second-quarter performance and what the analysts are forecasting for the stock.
| Stock: | JP Morgan Chase Inc |
| Symbol for Invest.MT5 Account: | JPM |
| Date of Idea: | 17 July 2023 |
| Time Line: | 1 – 6 months |
| Entry Level: | $154.00 |
| Target Level: | $196.00 |
| Position Size for Invest.MT5 Account: | Max 5% |
| Risk: | High |
- The Invest.MT5 account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.
All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing.
JP Morgan Q2 2023 Performance
Here are some of the key highlights from the latest second-quarter earnings report from JP Morgan:
- Earnings per share of $4.37 vs $4.00 estimated
- Revenue of $42.4 billion vs $38.96 billion estimated
- Net income up 67% to $14.5 billion
- Revenue up 34% on higher rates and loan growth
- Average loans up 13%
- Deposits down 6%
Banks are often seen as a barometer of US consumer health. During the earnings call, JP Morgan CEO Jamie Dimon stated that the “US economy continues to be resilient” highlighting that consumers are spending but more slowly, that the labor market has softened but job growth remains strong.
In the last quarter, JP Morgan’s investment banking and trading activity was expected to fall but instead topped analyst estimates. Its retail banking division saw a 37% jump in revenue and a 71% jump in profits.
Higher interest rates tend to help banks who can lend at a higher amount than they borrow thereby creating more profit. While there are usually concerns that higher interest rates can cause a slowdown in lending, JP Morgan’s average loan growth was up 13%.
However, this may not be the bullish sign some expect. If people are taking out more loans and borrowing more money to cover higher bills due to inflation or higher rates, then this could be a negative for the economy and corporate sentiment.
In fact, Dimon highlighted this very specific concern during the earnings call. The risk of higher interest rates for a longer period of time, falling consumer bank balances, and continued geopolitical tensions could weigh on the economy and corporate profits.
JP Morgan Stock Forecast – What do the Analysts Say?
According to analysts polled by TipRanks for a JP Morgan stock forecast in the past 3 months, there are currently 17 buy, 5 hold and 0 sell ratings on the stock. The highest price level for a JP Morgan stock forecast is $196.00 with the lowest price target at $145.00.
The average price target for a JP Morgan stock forecast is $163.33.
An Example Trading Idea for the JP Morgan Stock Price
An example trading idea for the JP Morgan share price could be as follows:
- Buy the stock on a break above $154.00 to allow for volatility.
- Target just below the highest analyst price target of $196.00.
- Keep your risk small at a maximum of 5% of your total account.
- Time Line = 1 – 6 months
- If you buy 10 JP Morgan shares:
- If target is reached = $420.00 potential profit [($196.00 – $154.00) * 10 shares].
Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially considering how sensitive banking stocks are to the health of the consumer.
Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.
With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in JP Morgan stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.
There is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall!
How to Buy JP Morgan Stock in 4 Steps
With Admirals, you can buy shares in companies like JP Morgan with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks.
- Open an account with Admirals to access the dashboard.
- Click on Trade on one of your live or demo accounts to open the web platform.
- Search for your stock in the search window at the top right to view the live price chart.
- Click Create New Order from the bottom of the screen to open the trading ticket.
Click on the banner below to trade JP Morgan stock today! ▼▼▼
Do You See the JP Morgan Stock Price Moving Differently?
Remember that all analytics and trading ideas are based on the personal view and experience of the author.
If you believe there is a higher chance JP Morgan’s share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.
The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.
This means you can trade long and short to potentially profit from rising and falling stock prices. Learn more about CFDs in this How to Trade CFDs article.
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals’ investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:
- This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
- Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
- With a view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for the prevention and management of conflicts of interest.
- The Analysis is prepared by an independent analyst, Jitanchandra Solanki (analyst), (hereinafter “Author”) based on their personal estimations.
- Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.
- Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
- Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.
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