January 1, 2025 (Zacks Equity Research) – For those just beginning their investment journey, building a portfolio can feel overwhelming with the vast array of options available. A great strategy for newcomers is to focus on stocks that are poised to outperform the market in the coming months. One such stock that stands out is JPMorgan Chase & Co. (JPM), a leading player in the global financial sector.
Why JPMorgan Chase & Co. Is Worth Your Attention
Headquartered in New York, JPMorgan Chase & Co. is one of the largest and most influential banks worldwide, with assets totaling $4.21 trillion and stockholders’ equity of $345.8 billion as of September 30, 2024. With a global footprint spanning over 60 countries, JPMorgan is a key player in financial services, offering a broad range of solutions from investment banking to asset management.
Since being added to the Zacks Focus List in October 2016 at a share price of $68.11, JPM has seen significant growth, with shares rising by nearly 252% to $239.71. The stock’s performance underscores its robust fundamentals and market confidence.
Earnings Growth and Positive Revisions
JPMorgan Chase & Co. has garnered attention from analysts, with three revising their earnings estimates higher for fiscal 2024 in the past two months. The Zacks Consensus Estimate for the year has risen by $0.50 to $18.82 per share, reflecting strong investor confidence. Additionally, JPM has consistently exceeded earnings expectations, boasting an average earnings surprise of 7.7%.
The company’s earnings are projected to grow by 16% this fiscal year, further highlighting its potential for future growth. This aligns with the general investment strategy of focusing on companies with upward revisions in earnings estimates—stocks with such momentum often see price appreciation.
Why It Could Be the Right Time to Invest
For new investors, JPMorgan Chase & Co. offers a solid entry point. As stocks tend to react to earnings revisions, the upward adjustments to JPM’s estimates could lead to continued price growth. As part of the Zacks Focus List, JPM provides an excellent opportunity to invest in a company that’s likely to see its earnings expectations rise, positioning it for further success.
If you’re looking to build your portfolio with a stock that has proven its strength and is expected to continue outperforming, JPMorgan Chase & Co. could be the perfect place to start.
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