JPMorgan Chase (JPM) — This global financial services company has assets of nearly $2.5 trillion and operates in over 50 countries. Although S&P expects earnings for 2013 to fall to $4.41 versus $5.20 in 2012, they are projected to increase to $5.96 in 2014, assuming a net reduction in shares from a share repurchase plan. JPM’s earnings are expected to increase from an expanding capital markets business that should benefit from a European recovery, a strong asset management business, and expanding income from its U.S. branch network.
S&P anticipates the company will raise its common stock dividend and share repurchase plan in March. Based on fundamental analysis, its analysts have a 12-month target price of $65. The yield is currently 2.6% based on an annual dividend of $1.52 per share.
In May, JPM broke from a consolidation to form a new bull channel that held throughout the year. In November and December, buying volume increased, and the stock broke to a new high on Friday and appears capable of sustaining a breakout to a trading target of $64.
The breakout is supported by twin buy signals from my proprietary internal indicator, the Collins-Bollinger Reversal (CBR), along with a bullish MACD. JPM is also suitable for investors with a long-term objective of growth and income.