JPMorgan stock price forecast for Q4 after beating Q3 earnings expectations

By: Motiur Rahman
Motiur Rahman
Md Motiur enjoys researching how companies are solving challenges the world will face over the coming decades. In his… read more.
on Oct 13, 2021
  • JPMorgan Chase shares edged lower 2.33% after reporting its fiscal Q3 results.
  • The company announced its most recent quarterly results before markets opened, beating EPS estimates.
  • The stock trades at a compelling P/E ratio of 10.78 as of this writing.

On Wednesday, JPMorgan Chase & Co. (NYSE:JPM) shares declined by 2.33% after announcing its most recent quarterly results. The company reported its fiscal Q3 earnings before markets opened, beating analyst expectations. On the other hand, JPM’s revenue matched street expectations, with managed revenue coming in at $30.4 billion.

JPMorgan posted GAAP earnings per share of $3.74, beating the consensus analyst estimate of $3.005, while revenue increased marginally by 1.7% to $29.64 billion, in line with expectations.

Buy the post-earnings pullback?

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From an investment perspective, JPMorgan shares trade at an attractive P/E ratio of about 10.77, making the stock a compelling option for value investors. 

However, with analysts expecting its earnings per share to fall by more than 17% this year, before declining by a further 16% next year, growth investors may opt for alternatives in the market.

Therefore, JPMorgan looks like an exciting buy for investors that target short-term opportunities. As such, Wednesday’s post-earnings pullback could be a perfect opening for buying the stock.

Source – TradingView

How far is the rebound?

Technically, JPM shares seem to have recently pulled back after retesting the trendline resistance of the ascending channel formation. However, the stock price is yet to cross below the 100-day moving average and is still far from reaching oversold conditions.

Therefore, the current downward movement seems set to continue before a rebound occurs. As a result, investors could target extended declines at about $156.67, or lower at $150.65. 

On the other hand, if the stock price bounces back following Wednesday’s post-earnings decline, it could find resistance at $166.55, or higher at $171.37.

Not time to buy yet?

In summary, although JPMorgan shares have pulled back more than 5% this week, the current declines seem poised to continue until the stock hits a crucial support level. 

Moreover, with analysts expecting earnings to fall this year and next year, the current cheap valuation multiples could be a result of the low earnings expectations.

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