JPMorgan Chase (JPM) — This global financial services company has assets of nearly $2.5 trillion and operates in over 50 countries. Earnings in 2013 fell to $4.39 per share versus $5.22 in 2012. But S&P has increased its earnings estimate for 2014 to $6.04 from $5.96, and it projects $6.40 for 2015.
The bank’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, which has a 12-month fundamental target of $65, expects JPM to increase its common-stock dividend and share-repurchase plan in March. The current annual dividend is $1.52 per share for a 2.6% yield.
Technically, JPM broke from a consolidation in May to form a new bull channel. The 200-day moving average and the support line of the bull channel continue to frame the price structure.
In November and December, buying volume increased, and the stock broke to a new high. But profit-taking and a difficult month for stocks drove it to support, where it reversed.
JPM is under heavy accumulation, and with support from a new MACD buy signal, it has a trading target of $62 and a longer-term objective of $65.
