JPMorgan Chase & Co (JPM) a Buy this week based on the latest stock market ratings, and comparative pricing of its shares. While JPMorgan Chase & Co (NYSE:JPM) Buy recommendation derives some benefit of being in an industry group that is ranked above average in investment attractiveness, its sector is ranked below average in attractiveness which may offset this in whole or in part. The reasoning behind this recommendation includes a ranking in the company's industry group that is in the top third, a ranking in its sector group that is in the top quarter, a quantitative risk/reward calculation that is attractive, and analytical scores that are below average. JPM has recently seen its Portfolio Grader rating upgraded from a Hold to a Buy.
JPM is a $392.8 billion in market value member of the Financial Conglomerates GICS industry group where the ranking for JPM by Portfolio Grader places it 10 among the 30 companies in this industry group, placing it in the top half. JPM is ranked in the top quartile of the sector with a ranking of 222 among the 991 companies in the sector of its Finance sector and 1,281 in the Portfolio Grader company universe.
The Finance sector is ranked number 13 among the 20 sectors in the Portfolio Grader universe putting it in the third quartile of all the GICS sectors. The Financial Conglomerates industry group is ranked 56 among the 129 industry groups within the GICS sectors, placing it near the average in terms of the Proprietary Quantitative Score scoring system.
JPM has realized above-average scores in 2 of the 8 fundamental metrics used by Portfolio Grader and average or below-average grades in 6 of the areas used in the ranking of company stocks.
JPM's operational scores are below the industry norms for sales growth, operating margin, and earnings growth. Scores for visibility of earnings are mixed, with a ranking for earnings revisions that is much better than the industry average but rankings for earnings surprises and earnings momentum that worse than average. JPM's score for return on equity is appreciably better than its industry group average but its ranking for cash flow is below-average. These fundamental scores give JPMorgan Chase & Co a position in the bottom quartile of the industry group.
Portfolio Grader quantitatively measures JPM's shares using the Proprietary Quantitative Score. This metric looks at JPM's shares from the perspective of risk/reward. This unique scoring approach assesses the relative value of the company's shares based on the recent $114.68 share price of the shares relative to its peers, the market and risk associated with its industry and sector groups. Using this risk/reward calculation, JPM currently scores above-average in its industry group compared to its peers.
The Proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results, with A being 'strong buy' and F being 'strong sell'. Explore the tool here.
Commentary provided by UpTick Data Technologies.
