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JPM Stock Forecast: Will Shares Reach a Fair Price?

JPMorgan Chase & Co. is the largest US bank by assets. The firm reports strong revenue data regularly. Although stocks of many market giants are usually overvalued, it seems JPM stocks are undervalued. What are the reasons? Will JPM shares go up? What are analysts’ JPM stock forecasts and recommendations? Read on to learn more about JPM stocks.

The article covers the following subjects:

JPMorgan Chase & Co. Stocks: a Brief Summary

JPMorgan Chase & Co. is a banking institution and financial holding with offerings across  four segments: Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset & Wealth Management. In addition to the services of the segments, which include investment services, asset management, and treasury, the firm offers ATM, online and mobile, and telephone banking services for individual customers.

JPMorgan Chase & Co. was established in 1799 and turned into a publicly-traded company on October 6, 1978. JPM stock is a component of DJIA, S&P 100, and S&P 500 indices.

Here is some data on JPMorgan Chase & Co.’s stocks (New York Stock Exchange: JPM):

  • Market cap: $469.75 billion

  • Shares outstanding: 3 billion

  • Public float: 3 billion

  • P/E ratio: 12.33

  • Payout ratio: 26.97% (based on this year’s estimates)

  • EPS: $8.88 

  • Dividend Yield: 2.28%

  • Total return price range (past 5 years): 50.10 – 166.44

  • Annual dividend: $3.60

  • Forecast 12-month forward PEG Ratio: 2.36

  • Average volume: 14.39 million shares

Source: WalletStreetZen

The company’s Return on Equity of 14.2% reflects the fact that JPMorgan Chase & Co. fails to transform the equity of shareholders into returns.

Main Factors That Affect JPM Stock Price in 2021 & Beyond

Factors such as earnings reports, internal conditions, industry news, and global capital markets’ trends affect the whole stock market. In this section, we will highlight the factors that affect shares of JPMorgan Chase & Co. in particular.

Interest Rates

Although we mentioned that global market trends affect the whole equity market, the global economic situation affects JPMorgan Chase & Co. significantly. That’s why we should talk about it particularly.

Global market uncertainties lead to falling rates. The rates hurt banks because they affect the spread between the sum that a lender pays out to depositors and the sum that banks collect from borrowers. The interest paid by giant banks to depositors isn’t huge; loan yields’ drop signals a plunge of a key driver of the industry’s profit.

A continuation of the coronavirus pandemic could lead to a decrease in the stock value. In addition, other global events, including Brexit, trade wars, governments’ issues, and signs of recession, will lead to a stock depreciation.

Strong Reports

Earnings reports are another trigger for price movements. If you scroll down the article, you will see how the price was historically affected by revenue reports.

The bank has a strong position in the market. JPMorgan Chase & Co.’s efficiency and focus on capital strength can be described by the “fortress balance sheet” term invented by CEO Jamie Dimon. It’s the largest US bank by assets. Positive earnings reports will boost the stock rate.

Investments

The company is going to invest $12.5 billion in technology this year. As the firm provides financial services, investments in the technology industry provide a boost for the company’s growth.

Acquisitions

The company has plans to acquire new businesses to increase its market coverage. The focus will be set on the asset management business. In the case of a profitable acquisition, the stock value will increase.

JPMorgan Stock Forecast for 2021: Analysts’ Recommendations

Let’s discover JPMorgan stock price predictions. The average 12-month price target of 21 Wall Street analysts is $150.61. A potential maximum price is placed at $200.00; simultaneously, the price can fall to $80.00. The consensus rating is “Buy”, as 14 analysts set it, 5 analysts recommend holding stocks, and only 2 experts advise to sell the shares.

How much is JPM stock today? The current price of JPM stocks is 150.75 US dollars.

Mike Mayo, Wells Fargo

Mike Mayo at Wells Fargo believes the company’s shares have a positive momentum to rise from $195 to $200. As a result, he maintains the “Strong Buy” rating.

John Heagerty, Atlantic Equities

John Heagerty at Atlantic Equities isn’t so optimistic. He downgraded the stocks to hold. The price projection is $150.

David Konrad, DA Davidson

David Konrad at DA Davidson sees strong momentum for the share price. The possible stock quote was increased to $182 from $179. The rating is kept on “Strong Buy”.

Jeffery Harte, Piper Sandler

Jeffery Harte at Piper Sandler is sure it’s time for a “Strong Buy” for JPM shares as the new price target is $182 (vs. $170 previous).

Gerard Cassidy, RBC Capital

Gerard Cassidy at RBC Capital maintained the buying rating but boosted the price target to $160 from $150.

Technical Analysis of JPM Stocks

Let’s consider current stock performance. On the daily chart of JPMorgan Chase & Co. stocks (NYSE: JPM), the price has broken below the trendline. It’s a negative signal for the future price. Supports are placed at $147 and $138.50. To resume the uptrend, the price should break above $158.20; the next level is USD 167.50.

Oscillators signal buy momentum while Moving Averages predict a bearish trend. Classic pivots are:

S3 — 133.57

S2 — 147.13

S1 — 155.69

P — 160.69

R1 — 169.25

R2 — 174.25

R3 — 187.81

You can check the current buy and sell rates below:

JPM Stock Forecast for 2022

What is the future for JPMorgan Chase & Co. stock? Wallet Investor sees an uptrend next year. The price will rise from $168.938 (the opening price in January) to $177.227 (the closing price in December). Investors should remember that large companies such as JPMorgan Chase aren’t subject to high price fluctuations. The range between the high and low prices is $0.8 – $3.8.

Month

Opening price

Closing price

Minimum price

Maximum value

January

168.938

168.718

168.656

169.435

February

168.888

170.686

168.872

171.096

March

170.693

169.228

168.746

170.693

April

169.257

170.891

169.257

170.925

May

170.807

171.169

170.622

171.169

June

171.066

167.426

167.339

171.131

July

167.411

171.007

167.411

171.042

August

170.869

169.882

169.589

170.930

September

170.038

171.249

170.038

171.368

October

171.124

172.875

171.113

172.875

November

173.078

175.430

173.078

175.458

December

175.578

177.227

175.578

177.227

Source: Wallet Investor

JPM Stock Forecast for 2023

What are the price expectations for 2023? The source expects a solid uptrend within a narrow range of $177.486 – $185.756. In 2023, price volatility isn’t expected to increase. High and low rates won’t be far from each other.

Month

Opening price

Closing price

Minimum value

Maximum value

January

177.486

177.483

177.333

178.097

February

177.448

179.487

177.448

179.758

March

179.296

177.843

177.429

179.296

April

177.988

179.554

177.988

179.581

May

179.490

179.747

179.280

179.834

June

179.829

176.056

176.046

179.829

July

176.113

179.584

176.113

179.686

August

179.658

178.626

178.271

179.658

September

178.652

179.945

178.652

180.036

October

179.817

181.629

179.777

181.629

November

181.632

184.173

181.632

184.173

December

184.195

185.756

184.195

185.756

Source: Wallet Investor

Long-Term JPM Stock Forecast for 2025 and Beyond

According to Wallet Investor, the price will be able to break above the $200 threshold by the end of 2025, starting the year at $194.790; the rate will jump to 203.326 by the end of December. As of 2026, the price will keep surging. By the end of July, we can expect a rate near $205.205. The degree of price fluctuations is still low.

Month

Opening price

Closing price

Minimum value

Maximum value

2025

January

194.790

194.808

194.636

195.424

February

194.983

196.737

194.983

197.073

March

196.333

195.150

194.794

196.333

April

195.327

196.848

195.306

196.943

May

196.930

197.136

196.625

197.164

June

197.029

193.336

193.336

197.095

July

193.473

197.012

193.433

197.058

August

196.934

195.840

195.624

196.934

September

195.961

197.296

195.961

197.389

October

197.182

198.975

197.101

198.975

November

199.186

201.375

199.186

201.375

December

201.498

203.326

201.498

203.326

2026

January

203.523

203.418

203.321

204.088

February

203.537

205.520

203.537

205.742

March

205.154

203.912

203.440

205.154

April

203.887

205.608

203.887

205.609

May

205.563

205.791

205.305

205.808

June

205.731

205.205

205.205

205.815

Source: Wallet Investor

How much will JPM stock be worth in 10 years? The website doesn’t submit such a long JPMorgan Chase stock forecast as long-time predictions are affected by many factors that can fully change the rate course. As a result, there is no guarantee that such a long-term JPM stock price forecast will come true.

Price History of JPM Shares: Timeline  

Why do we consider price performance? Because historical data can provide clues on the future price direction and explain why the price moved in a certain way in the past. Even last month’s stock movements can help predict future prices.

The overall bullish trend started in 2015. However, we will have a look at a few past years as the recent historical data is more important for the JPM stock forecast.

In 2018, the company performed well, posting 12, 13, 14, and 15 consecutive earnings growth over the calendar year. In March, the company’s stocks set an all-time high near $118.

That year, the stocks mostly traded sideways. Then, a sharp rise happened in July. JPM shares increased by over 10% as the bank reported better-than-anticipated quarterly earnings and raised its dividend.

The most significant decline occurred in December. Why were JPM stocks going down? As we mentioned above, the company depends highly on the economic situation in the world. At the end of 2018, investors worried about the shutting down of the system and a recession.

Only by September 2019, stocks managed to return to the average levels of 2018. In April 2019, the rate surged around 15% due to the company’s strong first-quarter results; the firm experienced broad-based growth. 

During 2019 the stocks were under pressure due to the US-China trade dispute. Yet the company’s shares managed to peak at a record high in October after the parties signaled a resumption of negotiations. 

Later, the company reported strong growth throughout the three quarters. Return on equity was at a good level of 15%, returns on tangible equity were even higher. Both indicators showed profitability across the business. Overall, the company grew by 42.8%. 

The coronavirus pandemic didn’t allow the company’s shares to stay high. On March 9, 2020, JPMorgan Chase slid about 14%, which turned out to be the worst fall since March 2009. The plunge was caused by a dramatic plunge of oil prices and bond yields. Investors worried that the sharp decline due to the start of the coronavirus pandemic could cause a recession. During a month between the middle of February and the middle of March, the price plunged from $137 to $83.

The stocks started recovering only at the end of the year. However, the uptrend has been continuing. On June 4, 2021, the price set a new all-time high of $166.44. Improving global market conditions is the reason for the bull case.

Is Investing in JPMorgan Chase & Co. a Good Idea? 

According to AI Pickup LLC, the price will rise within the next 10 years. However, the source is not as optimistic as Wallet Investor. AI Pickup LLC believes the stocks will be rising until 2024. From 2024 to 2025, the price will be falling. The bullish trend will resume only in 2026. However, the bearish market sentiment will pull the price down in 2030.

JPMorgan Chase & Co. is affected by global market conditions. Being the largest US bank, the firm can’t avoid high price volatility. If the coronavirus pandemic disappears, JPM stocks will have a higher chance to appreciate. Until then, the shares will be under constant pressure. Anyway, JPM shares are among the top stocks for investing.

Year

Average

Low Price

High Price

2021

$165.96

$158.83

$174.36

2022

$194.25

$178.3

$206.37

2023

$223.23

$209.14

$230.57

2024

$191.55

$171.79

$225.51

2025

$180.86

$172.54

$207.57

2026

$189.68

$178.84

$206.82

2027

$193.31

$182.22

$203.67

2028

$198.25

$185.98

$209.46

2029

$201.91

$191.07

$208.22

2030

$161.55

$134.11

$201.54

Source: AI Pickup LLC

Although JPMorgan Chase & Co. is a giant company, its shares may suffer ups and downs. Thus, it’s worth considering stock trading. A Liteforex demo account offers a wide range of trading instruments alongside technical tools.   

JPMorgan Stock Price Prediction FAQ

Price chart of JPM in real time mode

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

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