Shares of banking giant JPMorgan Chase (NYSE:JPM) were little changed in today’s trading as investors await its Q2 earnings results on July 12 before the market opens. Analysts are expecting earnings per share to come in at $4.20 on revenue of $44.767 billion. This represents a decline from the $4.75 per share seen in the year-ago period, according to TipRanks’ data.
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However, JPM has beaten earnings estimates in six of its last eight quarters, and it’s possible for earnings to grow in comparison to last year’s results.
Still, there are some valid reasons that lend support to analysts’ conservative projections, according to TipRanks’ Bulls Say, Bears Say tool. To begin with, management has indicated that there will be a significant decline in net interest income during the rest of the year. It also doesn’t help that operating expenses are guided to come in at an all-time high of $91 billion.
Options Traders Anticipate a Minor Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting a 2.96% move in either direction.
Is JPM a Buy or Sell?
Analysts remain bullish about JPM stock, with a Moderate Buy consensus rating based on 17 Buys, six Holds, and zero Sells. Over the past year, JPM has increased by more than 44%, and the average JPM price target of $214.34 per share implies an upside potential of 3.48% from current levels.
