Steady Return Stock - JPM

The steady return stock of the day is JP Morgan Chase & Co. (JPM), the New York based financial service company. The past 52 weeks has been strong for the stock. Business wise the company is also expanding with the acquisition of the commercial banking unit of New York Bank, giving it 339 new branches and 700,000 new customers. In addition, the technical and financial side show this is a steady growing stock worth investing:

Technical
The 52 weeks chart shows this is a steady return stocks. First of all since January of this year the 50 day and 200 day moving average have been rising steadily. Then since 50 day MA crossed on top over 200 MA last December, it has stayed relatively close to 200 day moving average. In addition besides the popup in May and the dip in June and July, the stock staying very close to 50 day moving average during so we can confirm this is a steady growing stock.

Financial
The revenue for the past three years has been growing, from $44 billion in 2003 to $57 billion in 2004 and then $80 billion in 2005. In addition the first two quarters of 2006 also show growth over the previous year. Net incomes for the first two quarters are also higher and may result in a strong year for 2006 compared to 2005.

Steady Return Stock Rating(1 ~ 5, 5 means highest):
1. Market Potential(Bank): 4
2. Technical: 4.5
3. Financial: 5
Overall Rating: A