JPM Stock Before Q3 Earnings: Should You Buy Now or Wait for Results?

Core Viewpoint - JPMorgan is set to announce its third-quarter 2025 earnings on October 14, with expectations of solid performance driven by strong investment banking and trading activities, alongside growth in credit card and wholesale loans [1][2]. Financial Performance - The Zacks Consensus Estimate for revenues is $44.66 billion, indicating a 4.7% year-over-year increase [2][10]. - Earnings estimates have risen by nearly 1% to $4.83, reflecting a 10.5% increase compared to the same quarter last year [3][10]. - JPMorgan has a history of exceeding earnings estimates, with an average surprise of 11.95% over the last four quarters [5][7]. Key Revenue Drivers - Net Interest Income (NII): Expected to rise by 3.4% year-over-year to $24.2 billion, supported by stable funding costs and strong lending demand [8][10]. - Investment Banking (IB) Fees: Anticipated to grow by 14.5% year-over-year, with estimates of $2.69 billion in IB revenues [12][10]. - Markets Revenues: Expected to see high-teens percentage growth year-over-year, with equity markets revenues estimated at $2.93 billion (up 12%) and fixed-income markets revenues at $5.34 billion (up 17.9%) [14][13]. Expense and Asset Quality Outlook - Non-interest expenses are projected to increase by 5.8% year-over-year to $23.9 billion due to expansion efforts and technology investments [17]. - Provision for credit losses is estimated at $2.64 billion, down 15.2% year-over-year, while non-performing loans (NPLs) are expected to rise by 24.1% to $10 billion [18][19]. Market Position and Valuation - JPMorgan's stock is currently trading at a forward P/E of 15.13X, higher than the industry average of 14.97X, and at a premium compared to peers like Citigroup and Bank of America [25][27]. - The company benefits from its scale, diversified operations, and market presence, with ongoing initiatives expected to drive future growth despite potential increases in expenses [28].