JPMorgan and Goldman Sachs: reporting Q1'2021

JPMorgan and Goldman Sachs: reporting Q1'2021

2021-04-06 • Dikemaskini

JPM and Goldman Sachs report their earnings on April 14 for Q1’2021.

As the biggest US banks, JPMorgan and Goldman Sachs are regularly cited for the commentaries and financial evaluations their specialists give in regards to other companies. But what about these banks themselves, are their stocks a good buy?

Performance

JPM’s financial results for the fourth quarter of 2020 came out higher than expected. Observers had predicted an EPS of $2.72 rising 6% to the previous year, and JPMorgan brought an EPS of $3.79 which was considerably higher than the prognosis.

Goldman Sachs beat the expectations, too, but with a far more significant gap. While the EPS of Q4’2020 was forecast to be $7.00, the actual mark came out to be $12.08 – almost twice as high as the prognosis. However, similar to JPM, this stock did not make any gain on the day of the earnings release – in line with most of the market, it fell and erased most of January gains. 

Eventually, both stocks gained value making new all-time highs as fundamentals are not presenting any impediment for these banks to keep expanding.

                               Remember you can trade both stocks in FBS Trader!

Expectations

In general, observers are projecting a 20% value growth for the JPM stock this year. That would mean the price target of around $180 by the last quarter of 2021 against the current area of $150-160. The consensus for the EPS of Q1’2021 is $2.81-2.85 – almost the same as the previously expected mark for the EPS of Q4’2020 that was confidently surpassed by the actual data.

The consensus for the EPS of Q1’2021 of Goldman Sachs is $8.75 – proportionately higher than that of JPM. Noting higher fluctuation of this stock, it may be moved much more in case of a prognosis-beating scenario than JPM. A price area of $360 may well be taken as an optimistic price range.

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