JPMorgan vs. Wells Fargo: 1 Stock Technically Stronger Ahead of Earnings

As the earnings season for major financial institutions kicks off, investors are eagerly anticipating the reports from JPMorgan Chase (JPM) and Wells Fargo (WFC). Both banks have shown strong performance in recent quarters, but one stock stands out as technically stronger ahead of their earnings releases. Let's dive into the key indicators that suggest JPMorgan is in a better position than Wells Fargo.



1. Bullish Momentum: JPM stock is trading above its eight, 20, and 50-day simple moving averages (SMAs), indicating a strong bullish trend. In contrast, WFC stock is trading above its eight, 20, and 200-day SMAs, but its 50-day SMA is giving off a bearish signal, suggesting potential weakness in the medium term.
2. Analyst Ratings: Analysts have a positive view of JPMorgan's stock, with eight "buy" and six "hold" ratings among the 14 analysts tracked by Visible Alpha. For Wells Fargo, the average brokerage recommendation is 2.3, indicating an "Outperform" status, but this is less bullish than JPMorgan's ratings.
3. Price Targets: The average target price for JPMorgan is $256.50, suggesting analysts expect the stock to rise this year. In contrast, the average target price for Wells Fargo is $77.38, implying a more modest upside of 9.71% from the current price.
4. Earnings Beat History: JPMorgan has consistently beaten earnings estimates in its first three quarters of the fiscal year. While Wells Fargo also beat earnings expectations in Q3 2024, it missed on revenue, which could indicate a less robust performance compared to JPMorgan.



These technical indicators suggest that JPMorgan is in a stronger position than Wells Fargo heading into their earnings reports. However, it's essential to consider other factors, such as the banks' fundamentals and the broader economic environment, when making investment decisions.

In conclusion, while both JPMorgan and Wells Fargo have shown strong performance, JPMorgan's stock appears to be technically stronger ahead of their earnings releases. Investors should closely monitor the banks' earnings reports and consider the broader context when making investment decisions. As always, it's crucial to do thorough research and consider your risk tolerance before investing in any stock.