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An All-or-Nothing 2012 for JPMorgan Chase

Dan Caplinger
January 12, 2012

With 2012 just beginning, now's a smart time to gauge how the stocks you're interested in are likely to do this year and beyond. By knowing what stock analysts and fellow investors expect from a stock, you'll be smarter about whether you should buy it for your portfolio -- or sell it if you already own it.

Today, let's take a look at JPMorgan Chase (NYSE: JPM  ) . As I discussed last month, the Wall Street bank didn't have a very good 2011, although it did manage to hold up better than many of its banking peers. With financial challenges around the world, JPMorgan faces a tough road ahead. Can it successfully navigate the threats and recover from 2011's losses? Below, I'll take a closer look at what people expect from JPMorgan Chase and its rivals.

Forecasts on JPMorgan Chase

Median Target Stock Price $46
2011 EPS Estimate $4.52
2012 EPS Estimate $4.80
Expected Annual Earnings Growth, Next 5 Years 8%
Forward P/E 7.5
CAPS Rating (out of 5) ***

Sources: Yahoo! Finance, Motley Fool CAPS.

Will JPMorgan Chase get back on track in 2012?
Analysts see good things ahead for JPMorgan. At $46, the target price for the stock is about 25% higher than current prices, and continued earnings growth of 6%, while slow, would certainly justify the attractive earnings multiple the bank sports right now.

One thing that JPMorgan has going for it is a considerable advantage in dividends over some of its peers. Bank of America (NYSE: BAC