Trading JP Morgan After Q2 Performance

July 18, 2023 20:39

The biggest banks in the US have kicked off the second-quarter earnings season for 2023. Learn more about JP Morgan's second-quarter performance and what the analysts are forecasting for the stock.

Stock: JP Morgan Chase Inc
Symbol for Invest.MT5 Account: JPM
Date of Idea: 17 July 2023
Time Line: 1 - 6 months
Entry Level: $154.00
Target Level: $196.00
Position Size for Invest.MT5 Account: Max 5%
Risk: High
  • The Invest.MT5 account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.

All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing. 

JP Morgan Q2 2023 Performance

Here are some of the key highlights from the latest second-quarter earnings report from JP Morgan: 

  • Earnings per share of $4.37 vs $4.00 estimated 
  • Revenue of $42.4 billion vs $38.96 billion estimated 
  • Net income up 67% to $14.5 billion 
  • Revenue up 34% on higher rates and loan growth 
  • Average loans up 13% 
  • Deposits down 6% 

Banks are often seen as a barometer of US consumer health. During the earnings call, JP Morgan CEO Jamie Dimon stated that the "US economy continues to be resilient" highlighting that consumers are spending but more slowly, that the labor market has softened but job growth remains strong.  

In the last quarter, JP Morgan's investment banking and trading activity was expected to fall but instead topped analyst estimates. Its retail banking division saw a 37% jump in revenue and a 71% jump in profits.  

Higher interest rates tend to help banks who can lend at a higher amount than they borrow thereby creating more profit. While there are usually concerns that higher interest rates can cause a slowdown in lending, JP Morgan's average loan growth was up 13%.  

However, this may not be the bullish sign some expect. If people are taking out more loans and borrowing more money to cover higher bills due to inflation or higher rates, then this could be a negative for the economy and corporate sentiment.  

In fact, Dimon highlighted this very specific concern during the earnings call. The risk of higher interest rates for a longer period of time, falling consumer bank balances, and continued geopolitical tensions could weigh on the economy and corporate profits.

JP Morgan Stock Forecast - What do the Analysts Say?

According to analysts polled by TipRanks for a JP Morgan stock forecast in the past 3 months, there are currently 17 buy, 5 hold and 0 sell ratings on the stock. The highest price level for a JP Morgan stock forecast is $196.00 with the lowest price target at $145.00. 

The average price target for a JP Morgan stock forecast is $163.33.

Source: TipRanks, 17 July 2023


An Example Trading Idea for the JP Morgan Stock Price

An example trading idea for the JP Morgan share price could be as follows:  

  • Buy the stock on a break above $154.00 to allow for volatility. 
  • Target just below the highest analyst price target of $196.00. 
  • Keep your risk small at a maximum of 5% of your total account.   
  • Time Line = 1 – 6 months  
  • If you buy 10 JP Morgan shares:  
    • If target is reached = $420.00 potential profit [($196.00 - $154.00) * 10 shares].

Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially considering how sensitive banking stocks are to the health of the consumer.

Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.

With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in JP Morgan stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.

There is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall! 

How to Buy JP Morgan Stock in 4 Steps  

With Admirals, you can buy shares in companies like JP Morgan with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. 

  1. Open an account with Admirals to access the dashboard.   
  2. Click on Trade on one of your live or demo accounts to open the web platform.   
  3. Search for your stock in the search window at the top right to view the live price chart. 
  4. Click Create New Order from the bottom of the screen to open the trading ticket. 
Source: Admirals MetaTrader 5. JP Morgan. Monthly. Date: Nov 2014 to July 2023, captured on 17 July 2023. Past performance is not a reliable indicator of future results or future performance.


Click on the banner below to trade JP Morgan stock today! ▼▼▼ 

Do You See the JP Morgan Stock Price Moving Differently?   

Remember that all analytics and trading ideas are based on the personal view and experience of the author.  

If you believe there is a higher chance JP Morgan's share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.  

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.  

This means you can trade long and short to potentially profit from rising and falling stock prices. 


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Jitanchandra Solanki
Jitanchandra Solanki Financial Markets Author, Admirals London

Jitanchandra is a financial markets author with more than 15 years experience trading currencies, indices and US equities. He is an accredited Market Technician with a BA Hons degree.