Ahead of Q4 earnings, JPMorgan Chase & Co. shows a clear split between Seeking Alpha’s Quant (“Hold”) and Wall Street (“Buy”) ratings.
Quant flags valuation as a key concern, with JPM trading at a price-to-book of 3, more than double the sector median of 1. Growth is mixed: dividend growth is strong at 21% YoY, but revenue growth of 3% trails the sector’s 8% pace. Profitability remains a bright spot, with a 35% net income margin versus the sector’s 24%, though negative operating cash flow raises some caution.
On the other hand, Wall Street remains optimistic with a Buy recommendation. JPM is up nearly 33% over the past year, far ahead of the sector’s (XLF) 16% growth, and earnings expectations are improving, with 16 upward EPS revisions in the last three months and 1 lower. Analysts expect the firm to earn $4.86 on revenue of $46.25B in Q4.
Seeking Alpha analysts are also bullish, with a Buy rating on JPM. “JPMorgan Chase & Co. (JPM) remains my top financial sector pick, rated a buy despite elevated multiples, due to robust economic and company-specific outlooks,” SA columnist Carla Magliocco said. “Strong segmental ROE and revenue growth, combined with favorable macro catalysts like tax cuts and lower rates, underpin my optimistic 2026 thesis for JPM,” Magliocco added.