JPM Stock – Betting on Israel Expansion & Clever Investments

JPMorgan, one of the biggest banks, is expanding into Israel. Additionally, a strategic investment in Cleareye.ai should boost JPM stock. With the expansion, the bank is entering the sector of commercial banking for high-tech companies for the first time. The strategic investment seeks to reduce counterparty risk between exporters and importers worldwide. 

JPMorgan Chase & Co. (JPM Stock) – Financial Analysis

Although Israel had its first office of the JPMorgan Bank in 2000, the current initiative falls under the bank’s Innovation Economy banking division. This division aims to cater to the growth of companies, founders, and the venture capital community. 

HSBC also announced its entry into the same sector in Israel after acquiring the European branch of the collapsed Silicon Valley Bank. Similarly, Blackrock acquired Kreos Capital, a highly active firm in the high-tech finance sector. With the IPO market regaining traction on Wall Street, high-tech companies are gaining popularity.

Cleareye.ai, with its platform, claims to remove manual checks in the finance process and offers compliance by analyzing documents and data. 

At press time, JPM Stock is trading at $4142.53 with a drop of 0.51%, and previous close and open were at $143.26 and $142.61, respectively. The 52-week change comes with a hike of 23.75%. With an average volume of 12.41 Million shares, the market cap stays strong at $416.514 billion. 

The trailing twelve-month (ttm) Price to Earnings ratio (P/E) is 10.50, indicating that the stock is highly undervalued. The Earnings per Share (EPS) in a similar time-frame is $13.57. Analysts provided a 2.71 rating for moderate buy and placed the price target at $157.65 with an upside of 10.6%. 

JPM Stock - Betting on Israel Expansion & Clever Investments
Source: MarketBeat; JPM

The last earnings were reported on April 14 where the reported revenue of $38.349 billion beat the estimated value of $36.125 Billion by 6.16%, resulting in a surprise of $2.224 billion. The subsequent earnings are scheduled for July 14 with an estimated revenue of $39.18 billion. 

Data from March shows that the revenue swelled 23.31% to $36.07 billion, while the revenue (ttm) is $129.13 billion. The income per share is $43.57, and the quarterly revenue growth, year-over-year (YoY), hiked by 23.30%. Operating expenses jumped by 4.50% to $19.93 billion, and operating margin increased by 40.58% (ttm). 

Total cash in hand at the end of the most recent quarter (mrq) is $1.42 trillion, while the total debt accounted for $651.85 billion. 

JPM Stock – Candle Exploration

Currently, JPM’s share price is testing the crucial resistance level and is close to creating a new YTD high. The slightly upward trajectory of EMA and the RSI of 61.44 indicates that the resistance shall be broken soon. However, a transparent and sustainable breakthrough that could cross R1 and R2 might occur around the earnings report scheduled for next month. 

JPM Stock - Betting on Israel Expansion & Clever Investments
Source: TradingView; JPM

Price is expected to consolidate for a while, and if it moves downward, it shall first test S1 coinciding with EMA. A drop below S2 is unlikely. However, a negative earnings report could make it possible. 

Disclaimer:

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

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Source: https://www.thecoinrepublic.com/2023/06/21/jpm-stock-betting-on-israel-expansion-clever-investments/