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Blue-Chip Bank Stock Rallying Ahead of Earnings

JPM is on track for its fifth-straight day of gains, and yesterday hit a more than 52-week high

Deputy Editor
Jul 13, 2023 at 11:53 AM
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JPMorgan Chase & Co (NYSE:JPM) is one of many banks kicking off the second-quarter earnings season, announcing its report before the open on Friday, July 14. Today, JPM is on track for its fifth-straight day of gains, up 0.6% at $195.05 at last glance. The shares are moving back toward last session's peak of $149.87, which was their highest level since Feb. 2022. 

Year-to-date, the equity is up 11.2%. The stock is currently above all notable short- and long-term moving averages, including its 150-day trendline, which provided support for May pullbacks. Plus, the stock recently overcame pressure at the $144 level. 

Over the past two years, only the last three consecutive post-earnings sessions have finished positive. Over this time frame, the stock has averaged a next-day swing of 3.6%, regardless of direction, which is around the 3.8% the options pits are pricing in this time around. 

Options traders have been firmly bullish over the past 10 weeks. This is per the security's 50-day call/put volume ratio of 2.31 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than all other readings from the past year. 

Of the 21 analysts in coverage, 15 carry a "buy" or better rating on the bank name, while the 12-month consensus price target of $162.75 is a 9.1% premium to current levels. 

 

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