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JPMorgan Chase Stock: What to Expect in the Future

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Apr. 12 2019, Published 9:53 a.m. ET

JPMorgan Chase stock

As of April 11, JPMorgan Chase (JPM) stock has underperformed the benchmark index. Challenges in the trading revenues and the Fed’s pause on interest rate hikes limited the upside. However, the stronger-than-expected first-quarter results are expected to support the upside in JPMorgan Chase stock in the near term. JPMorgan Chase shares were trading 2.5% higher in the pre-market session on April 12.

JPMorgan Chase’s net interest income improved due to growth in loans and deposits as well as the continued benefit from the higher interest rate. However, persisting challenges in trading revenues limited the overall revenue growth rate.

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Increased investment banking fees and balance sheet expansion are expected to drive JPMorgan Chase’s revenues and earnings in the coming quarters. However, the absence of an interest rate hike and lower market revenues could continue to hurt and limit the upside.

JPMorgan Chase shares have risen 8.8% on a YTD basis as of April 11. Citigroup (C), Goldman Sachs (GS), and Bank of America (BAC) stock have risen 26.6%, 21.4%, and 18.0%, respectively.

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Analysts’ rating

Most of the analysts covering JPMorgan Chase stock still recommend a “hold.” Analysts recommend a “buy” on Citigroup and Bank of America stock. Analysts remain on sidelines regarding Wells Fargo (WFC) and Goldman Sachs (GS) shares.

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