3 Bank Stocks To Buy Right Now Instead Of JPMorgan (JPM)
Zacks Investment Research | Sep 22, 2016 05:27AM ET
JPMorgan Chase & Co. (NYSE:JPM) , the largest U.S. bank in terms of market capitalization, has been witnessing downward estimate revisions for quite some time now. Over the past 90 days, the Zacks Consensus Estimate for the current quarter has revised 4.9% downward, while it is down nearly 1% for this year. Also, the estimate for 2017 declined 2.9% over the same time frame.
Further, JPMorgan’s current year earnings are projected to decline 1.2% as against the projected earnings growth of 7.22% for the S&P 500. In addition, the stock looks a bit overvalued with respect to its PEG ratio. It currently trades at a PEG ratio of 1.96, compared with the industry average of 1.90.
Moreover, in addition the pressure on net interest margin due to the low-rate environment, limited fee income growth is expected to keep JPMorgan’s revenue growth challenged. Though the company projects interest income to rise in 2016 (mainly driven by loan growth and lower re-pricing), we believe margin will remain under pressure unless there is significant improvement in the rate environment.
JPMorgan currently carries a Zacks Rank #3 (Hold) and a Zacks Investment Research
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