JPMorgan Chase & Co. is the largest US bank by assets. The firm reports strong revenue data regularly. Although stocks of many market giants are usually overvalued, it seems JPM stocks are undervalued. What are the reasons? Will JPM shares go up? What are analysts’ JPM stock forecasts and recommendations? Read on to learn more about JPM stocks.
The article covers the following subjects:
JPMorgan Chase & Co. Stocks: a Brief Summary
JPMorgan Chase & Co. is a banking institution and financial holding with offerings across four segments: Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset & Wealth Management. In addition to the services of the segments, which include investment services, asset management, and treasury, the firm offers ATM, online and mobile, and telephone banking services for individual customers.
JPMorgan Chase & Co. was established in 1799 and turned into a publicly-traded company on October 6, 1978. JPM stock is a component of DJIA, S&P 100, and S&P 500 indices.
Here is some data on JPMorgan Chase & Co.’s stocks (New York Stock Exchange: JPM):
Market cap: $469.75 billion
Shares outstanding: 3 billion
Public float: 3 billion
P/E ratio: 12.33
Payout ratio: 26.97% (based on this year’s estimates)
Dividend Yield: 2.28%
Total return price range (past 5 years): 50.10 – 166.44
Annual dividend: $3.60
Forecast 12-month forward PEG Ratio: 2.36
Average volume: 14.39 million shares
The company’s Return on Equity of 14.2% reflects the fact that JPMorgan Chase & Co. fails to transform the equity of shareholders into returns.
Main Factors That Affect JPM Stock Price in 2021 & Beyond
Factors such as earnings reports, internal conditions, industry news, and global capital markets’ trends affect the whole stock market. In this section, we will highlight the factors that affect shares of JPMorgan Chase & Co. in particular.
Although we mentioned that global market trends affect the whole equity market, the global economic situation affects JPMorgan Chase & Co. significantly. That’s why we should talk about it particularly.
Global market uncertainties lead to falling rates. The rates hurt banks because they affect the spread between the sum that a lender pays out to depositors and the sum that banks collect from borrowers. The interest paid by giant banks to depositors isn’t huge; loan yields’ drop signals a plunge of a key driver of the industry’s profit.
A continuation of the coronavirus pandemic could lead to a decrease in the stock value. In addition, other global events, including Brexit, trade wars, governments’ issues, and signs of recession, will lead to a stock depreciation.
Earnings reports are another trigger for price movements. If you scroll down the article, you will see how the price was historically affected by revenue reports.
The bank has a strong position in the market. JPMorgan Chase & Co.’s efficiency and focus on capital strength can be described by the “fortress balance sheet” term invented by CEO Jamie Dimon. It’s the largest US bank by assets. Positive earnings reports will boost the stock rate.
The company is going to invest $12.5 billion in technology this year. As the firm provides financial services, investments in the technology industry provide a boost for the company’s growth.
The company has plans to acquire new businesses to increase its market coverage. The focus will be set on the asset management business. In the case of a profitable acquisition, the stock value will increase.
JPMorgan Stock Forecast for 2021: Analysts’ Recommendations
Let’s discover JPMorgan stock price predictions. The average 12-month price target of 21 Wall Street analysts is $150.61. A potential maximum price is placed at $200.00; simultaneously, the price can fall to $80.00. The consensus rating is “Buy”, as 14 analysts set it, 5 analysts recommend holding stocks, and only 2 experts advise to sell the shares.
How much is JPM stock today? The current price of JPM stocks is 160.46 US dollars.
Mike Mayo, Wells Fargo
Mike Mayo at Wells Fargo believes the company’s shares have a positive momentum to rise from $195 to $200. As a result, he maintains the “Strong Buy” rating.
John Heagerty, Atlantic Equities
John Heagerty at Atlantic Equities isn’t so optimistic. He downgraded the stocks to hold. The price projection is $150.
David Konrad, DA Davidson
David Konrad at DA Davidson sees strong momentum for the share price. The possible stock quote was increased to $182 from $179. The rating is kept on “Strong Buy”.
Jeffery Harte, Piper Sandler
Jeffery Harte at Piper Sandler is sure it’s time for a “Strong Buy” for JPM shares as the new price target is $182 (vs. $170 previous).
Gerard Cassidy, RBC Capital
Gerard Cassidy at RBC Capital maintained the buying rating but boosted the price target to $160 from $150.
JPMorgan Chase Stock Technical Analysis
To conduct a full technical analysis of the JPMorgan Chase stock market, traders need to be aware of global trends and levels that can stop the price movement. So, let’s analyze the largest timeframe.
The monthly JPM/USD chart clearly shows a bullish trend starting from March 2009. In the last five years, an acceleration of the uptrend has been observed, which indicates its high potential.
Another sign of the strength of the bullish trend is the situation that occurred in March 2020. At that moment, sellers showed abnormally high activity and took advantage of the sharp JPM price decline due to the news. This drop is marked with a blue mark.
However, starting next month, the panic JPMorgan Chase shares price drop did not prevent the market from stabilizing and regaining lost ground.
For a deeper understanding of market processes let’s impose a grid of Fibonacci channels on the trend and determine the trend lifecycle. There are five such phases in total:
- Gray area of the trend bottom (1) – from 0 to 0.236.
- Rapid movement zones (2, 4) – from 0.236 to 0.382 and from 0.618 to 0.786.
- Yellow consolidation zone (3) – from 0.382 to 0.618.
- Peak range (5) – from 0.786 to 1.
The latest spike in the JPM price chart, which began in late spring 2020, has reached the peak zone. This means that a correction may soon replace it. An alternative scenario suggests price consolidation in zone 5 and creating a new consolidation zone from it to continue the trend development.
The price development can be predicted more accurately by analyzing smaller timeframes.
JPMorgan Chase Stock Forecast For Next Three Months
Let’s continue technical analysis on the daily timeframe.
The MACD chart shows a classic bearish divergence. It implies that with a smooth price increase, the indicator chart decreases. With a slowdown of the uptrend, this signal indicates that the JPMorgan Chase projected stock price will reverse down in the future.
The projected fall in the next three months is likely to be quite intense due to the fact that the zone of rapid movements is marked green. Historically the price does not stay there for long. Among the correction targets, the most possible is the upper border between the second and third zones. There is a key level of $115, which witnessed very strong sales in June 2020. This key level will provide strong support to buyers in the current situation.
Long-Term JPMorgan Chase shares Analysis and Forecast for 2022
To make a realistic forecast for the next 12 months, it is worth studying the JPMorgan Chase price history and identifying patterns.
In the near future, the projected price will decline. It may approach the psychological level of 115 dollars in the first quarter of 2022. Since there are no signals for a global trend reversal, the bullish potential of JPMorgan Chase & Co remains. Consequently, when approaching the trend bottom zone, the probability of a JPMorgan Chase price reversal up increases.
JPMorgan Chase projected growth, as in 2021, is likely to be progressive. Short-term corrections will replace intense bullish waves. The potential target for the new bullish impulse will be the peak zone. The JPMorgan Chase price chart is expected to reach it by the end of next year.
The JPMorgan Chase prediction chart above shows the price projections for each month of 2021/2022 in orange. The table below shows the approximate expected trading ranges for JPMorgan Chase for each period.
Monthly JPM to USD price forecast
|Month||JPM stock price in USD|
JPM shares Long-Term Trading Plan
Having made a long-term JPMorgan Chase stock forecast, let’s draw up a long-term trading plan.
Before entering trades with JPMorgan Chase shares, I recommend waiting for a slight price decline to the zone of historical highs.
Another attempt of ATH retest before the decline is possible.
I marked the approximate area where it is reasonable to enter short JPMorgan Chase trades with a blue line in the zone of 170 USD.
The red line on the chart above marks the stop loss, which should be set above the historical high. Take profit is marked with a green line. The target of the bearish correction is around 115 USD. This is where it is reasonable to exit the trades.
In the process of trading, it is better to rely on a trailing stop, since the corrective movement can stop at any of the levels of the Fibonacci grid.
After reaching the target for the short trade, it will be possible to look for an entry point for the long trade. ATH chart will be the target in this case. I would put take profit around 170 USD. In this case, stop loss should be set no higher than the psychological mark of 100 USD. Here traders can also apply a trailing stop, but at large intervals, in order to exclude false reactions to short-term corrections.
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JPM technical analysis is presented by Mikhail Hypov.
JPM Stock Forecast for 2022
What is the future for JPMorgan Chase & Co. stock? Wallet Investor sees an uptrend next year. The price will rise from $168.938 (the opening price in January) to $177.227 (the closing price in December). Investors should remember that large companies such as JPMorgan Chase aren’t subject to high price fluctuations. The range between the high and low prices is $0.8 – $3.8.
Source: Wallet Investor
JPM Stock Forecast for 2023
What are the price expectations for 2023? The source expects a solid uptrend within a narrow range of $177.486 – $185.756. In 2023, price volatility isn’t expected to increase. High and low rates won’t be far from each other.
Source: Wallet Investor
Long-Term JPM Stock Forecast for 2025 and Beyond
According to Wallet Investor, the price will be able to break above the $200 threshold by the end of 2025, starting the year at $194.790; the rate will jump to 203.326 by the end of December. As of 2026, the price will keep surging. By the end of July, we can expect a rate near $205.205. The degree of price fluctuations is still low.
Source: Wallet Investor
How much will JPM stock be worth in 10 years? The website doesn’t submit such a long JPMorgan Chase stock forecast as long-time predictions are affected by many factors that can fully change the rate course. As a result, there is no guarantee that such a long-term JPM stock price forecast will come true.
Price History of JPM Shares: Timeline
Why do we consider price performance? Because historical data can provide clues on the future price direction and explain why the price moved in a certain way in the past. Even last month’s stock movements can help predict future prices.
The overall bullish trend started in 2015. However, we will have a look at a few past years as the recent historical data is more important for the JPM stock forecast.
In 2018, the company performed well, posting 12, 13, 14, and 15 consecutive earnings growth over the calendar year. In March, the company’s stocks set an all-time high near $118.
That year, the stocks mostly traded sideways. Then, a sharp rise happened in July. JPM shares increased by over 10% as the bank reported better-than-anticipated quarterly earnings and raised its dividend.
The most significant decline occurred in December. Why were JPM stocks going down? As we mentioned above, the company depends highly on the economic situation in the world. At the end of 2018, investors worried about the shutting down of the system and a recession.
Only by September 2019, stocks managed to return to the average levels of 2018. In April 2019, the rate surged around 15% due to the company’s strong first-quarter results; the firm experienced broad-based growth.
During 2019 the stocks were under pressure due to the US-China trade dispute. Yet the company’s shares managed to peak at a record high in October after the parties signaled a resumption of negotiations.
Later, the company reported strong growth throughout the three quarters. Return on equity was at a good level of 15%, returns on tangible equity were even higher. Both indicators showed profitability across the business. Overall, the company grew by 42.8%.
The coronavirus pandemic didn’t allow the company’s shares to stay high. On March 9, 2020, JPMorgan Chase slid about 14%, which turned out to be the worst fall since March 2009. The plunge was caused by a dramatic plunge of oil prices and bond yields. Investors worried that the sharp decline due to the start of the coronavirus pandemic could cause a recession. During a month between the middle of February and the middle of March, the price plunged from $137 to $83.
The stocks started recovering only at the end of the year. However, the uptrend has been continuing. On June 4, 2021, the price set a new all-time high of $166.44. Improving global market conditions is the reason for the bull case.
Is Investing in JPMorgan Chase & Co. a Good Idea?
According to AI Pickup LLC, the price will rise within the next 10 years. However, the source is not as optimistic as Wallet Investor. AI Pickup LLC believes the stocks will be rising until 2024. From 2024 to 2025, the price will be falling. The bullish trend will resume only in 2026. However, the bearish market sentiment will pull the price down in 2030.
JPMorgan Chase & Co. is affected by global market conditions. Being the largest US bank, the firm can’t avoid high price volatility. If the coronavirus pandemic disappears, JPM stocks will have a higher chance to appreciate. Until then, the shares will be under constant pressure. Anyway, JPM shares are among the top stocks for investing.
Source: AI Pickup LLC
Although JPMorgan Chase & Co. is a giant company, its shares may suffer ups and downs. Thus, it’s worth considering stock trading. A Litefinance demo account offers a wide range of trading instruments alongside technical tools.
JPMorgan Stock Price Prediction FAQ
Price chart of JPM in real time mode
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.