What To Do With JP Morgan Now? (JPM)

In light of the positive JP Morgan

Q4 earnings report, current prices may present a good buying opportunity for investors. JP Morgan reported better-than-expected earnings in Q4 2010,

. 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

. Despite the legal fall-out relating to the robo-signing scandals, according to

, 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. Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that your own due diligence and consult a certified financial professional for personalized advice about your financial situation.