Stock Of The Day Hits High After Boosting Buybacks And Dividends

July 2, 2024

JPMorgan Chase stock flirts with buy point

Central bank shares rose 1.6% on Stock market todayThe move put JPMorgan Chase shares briefly above 205.88 buy points from a flat base, according to Booming market pattern recognition. This helped push JPM stock to an all-time intraday high on Monday, even though it closed just below the entry level.

The bank stock is above all short-term and long-term moving averages, which is a positive sign. relative strength line The stock remains below the consolidation peak. It would be a positive sign if the RS line catches up with the stock as it attempts to break out of this peak. This strength indicator has been rising for much of the past year, a sign of JPMorgan’s outperformance versus the S&P 500.

Fed Passes Stress Test, Increases Stock Buybacks, Dividends

In terms of IBD Key Ratings, JPM stock is showing a SMR rating of A, which reflects superior growth in sales, margins and return on equity. In addition, shares of banking giant Dow Jones carry a high/low volume ratio of 1.4, a sign of healthy institutional demand.

The bulk of the increase came on June 28. JPMorgan announced it would raise its quarterly dividend from $1.15 to $1.25. Its board also authorized a $30 billion share buyback. On Wednesday, the Federal Reserve announced that the bank had passed the Fed’s annual stress test, showing it was well positioned to survive a possible recession.

Like JPMorgan Chase, Morgan Stanley (MS) says it is increasing both share buybacks and dividend payments.

Last week, markets reacted favorably to former President Donald Trump’s convincing victory over President Joe Biden in the debate before the November presidential election. Strategists expect financial stocks to benefit from a possible second Trump term.

At an investor day on May 20, JPMorgan raised its 2024 net interest income forecast to $91 billion, up from a previous forecast of $89 billion in April.

JPMorgan stock gains solid 88 Relative strength index on a score of 99, which is down slightly from 89 four weeks ago. The RS Rating of 88 means JPMorgan Chase stock has outperformed 88% of all stocks in IBD’s database over the past year.

JPMorgan Chase shares have jumped more than 21% since the start of the year, thanks to a strong first-quarter gain.

JPMorgan Chase Profit Growth Expected to Slow

The largest U.S. bank by assets has a solid 93 Composite note out of a top score of 99. The composite rating combines various technical and fundamental measures into one easy-to-read score.

JPM stock has a rating of 88 EPS rating in the wake of a return to profits in 2023 after a decline in 2022.

On April 12, JPMorgan Chase beats first-quarter profit expectations Revenue rose 9%. However, sales growth slowed for a third straight quarter and the company’s guidance disappointed some investors.

On a per-share basis, JPMorgan Chase’s earnings rebounded 34% in 2023 after falling 21% in 2022, FactSet shows.

Analysts expect the bank’s earnings per share to become choppy on a quarterly basis, gaining 2.5% for the full year of 2024 and then slowing to 0.4% in 2025. Its sales are expected to rise 5.5% and 0.8% this year and next, respectively.

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