Analytical Review of the Stocks of JPMorgan Chase&Co.

Analytical Review of the Stocks of JPMorgan Chase&Co.

4 April 2016, 18:23
Roberto Jacobs
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Analytical Review of the Stocks of JPMorgan Chase&Co.

JPMorgan Chase&Co., #JPM [NYSE]
Finance, Banks, USA

Financial performance of the company:

Index – DJIA, S&P 500;
Beta – 1.65;
Capitalization – 212.84 В;
Return on asset – 0.90%;
Income - 22.41 B;
Average volume – 19.56 М;
P/E - 9.64;
ATR – 1.86.

Analytical review:

  • The company ranks the fourth on capitalization in the sector of finance among the issuers traded in the American stock market.
  • Since mid-February company’s shares grew by 11%. It is expected that the quotes of the company will continue to rise.
  • According to the last report for Q4 of the fiscal year 2015, company’s net profit rose by 10.1% up to 5.43 billion USD. EPS (earning per share) amounted to 1.32 USD, which was above the forecast of 1.25 USD.
  • At the press-conference company’s executives said that financial performance of the company was better than expected due to introduction of the stringent program of cost-cutting. The company reduced legal costs from 1.1 billion USD to 644 billion USD. Total non-interest expenses reduced by 7.4%.
  • This year JPMorgan plans to expand asset repurchase by 1.88 billion USD. Introduction of this program shows optimistic plans of the company and indicates the that issuer is undervalued.
  • Large investment funds and banks (Atlantic Equities, Argus, Keefe Bruyette) predict the rise in company’s shares up to 70 USD.


Summary:

  • Company’s report for Q4 of the fiscal year 2015 showed that the management of the company is on the right track. The company has strong growth potential. The increase in the buyback of shares will increase investors’ confidence in the company. Large investors predict the rise in company’s shares.
  • It is likely that in the near future company’s quotes will go up.


Trading tips for CFD of JPMorgan Chase&Co.

Medium-term trading: the moment the issuer is traded between support and resistance levels of 58.55 - 60.50 USD. After breaking out and testing of resistance level of 60.50 USD in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 1.5% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 63.00 USD, 64.50 USD and 66.50 USD with the use of trailing stop.


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Short-term trading: on the chart with the timeframe 15M the issuer is traded between the local support and resistance levels of 58.95 - 60.15 USD. We recommend to enter the market after breakdown and testing of these levels. Positions can be opened at the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.


k0404JPMM15


The material has been provided by LiteForex - Finance Services Company - www.liteforex.com


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