JP Morgan share price Q1 2022 results preview

[MongiIG]

What to expect and how to trade JP Morgan’s upcoming results.

Source: Bloomberg

 Shaun Murison | Senior Market Analyst, Johannesburg | Publication date: Friday 08 April 2022 

In this article we preview the upcoming JP Morgan results and look at how traders and brokers are placed leading into the event.

When are the JP Morgan results expected?

JP Morgan is set to release its first quarter (Q1) 2022 results on the 13th of April 2022.

What is ‘The Street’s’ expectation for the Q1 2022 results?

‘The Street's’ expectations for the upcoming results are as follows:

- Revenue of $30.972bn (-6.48% year on year)

- Earnings per share $2.68 (-41.6% year on year)

How to trade JP Morgan into the results

Source: Refinitiv

 

Refinitiv data shows a consensus analyst rating of ‘hold’ for JP Morgan, although the long-term price target of $167.44 suggests the share is currently trading at a discount of 28% to this level (as of the 8th of April 2022).

Source: IG

 

IG sentiment data shows that 94% of clients with open positions on the share (as of the 8th of April 2022) expect the price to rise over the near term, while 6% of these clients expect the price to fall.

JP Morgan - technical view

Source: ProRealTime

 

The long-term price trend for JP Morgan remains down as the price trades firmly below the 200-day simple moving average (SMA).

In the short-term the price is range-bound in nature trading between levels $128.00 and $142.15. The long-term downtrend suggests keeping a short bias to trades on the company, although the oversold signal near support suggests that we could see a price rebound in the short-term.

To reestablish a long bias to trades we would like to see the short-term rebound (should it manifest) take the price back above range resistance at $142.15. Failure to break this resistance level would see traders considering new short positions on a bearish price reversal before this level.

Alternatively short entry could be considered on a break (confirmed with a close) below the $128 support level. In this scenario, $113 would become a further downside target from the move.

In summary

- JP Morgan Chase and Co. is set to release Q1 2022 results on the 13th of April 2022

- Q1 2022 results are expected to show a year-on-year decline in both revenue and earnings per share (EPS)

- Long-term broker consensus suggests the share is currently a ‘hold’, with a longer term price target of $167.44

- IG clients with open positions on the share are predominantly long

- The long-term price trend for JP Morgan remains down, although in the short-term the price is range-bound in nature with an oversold signal prompting a near term rebound.