In light of the positive JPMorgan Chase (NYSE: JPM) Q4 earnings report, current prices may present a good buying opportunity for investors. JP Morgan reported better-than-expected earnings in Q4 2010, as Benzinga readers are well aware. The EPS of $1.12 beat out estimates of $0.99, as revenue of $26.1 billion outperformed the expectations of $24.44 billion. Despite the optimistic news, shares are only slightly higher, up 0.2% to $44.53 in pre-market trading, according to the Financial Times.

Despite the legal fall-out relating to the robo-signing scandals, according to The Steet, JP Morgan's earnings prevail notwithstanding increased costs related to the scandal. However, the biggest cost for JP Morgan is not foreclosure-related, but rather employee compensation with hiring and bonuses.

The earnings release may be a sign of strength for the company as it surpassed expectations despite significant costs throughout the past quarter. Also, JP Morgan said a significant cost involved new hiring: possibly a sign of expansion. Currently trading at $44.53, with a P/E of 12.43, JP Morgan could be slightly undervalued. Trading above its 200-day value may be seen as a sign of overly robust sentiment, but the financial sector was hit very hard during the financial crisis and may still be on the rebound.

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