The Zacks Analyst Blog Highlights: Bank of America, JP Morgan Chase, Wells Fargo, Wal-Mart Stores and The Coca Cola

Zacks

For Immediate Release

Chicago, IL – March 5, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Bank of America Corporation (BAC), JP Morgan Chase & Co. (JPM), Wells Fargo & Company (WFC), Wal-Mart Stores, Inc. (WMT) and The Coca Cola Company (KO).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Friday’s Analyst Blog:

BofA Considering New Fees Again

It has been over a year since Bank of America Corporation (BAC) has been testing its new fee structure in the states of Arizona, Massachusetts and Georgia. In this context, on Thursday, The Wall Street Journal reported that BofA is planning to impose these fees on its customers.

According to the company, there has been no decision as to how or when these fees would be introduced on new accounts.

According to the source, BofA is considering raising monthly fees on checking accounts. The company is planning to charge $6-$9 per month on basic checking accounts. Apart from this, the company is also mulling monthly fee in the range of $9-$25 on other checking accounts.

However, customers need not worry as there are certain ways to avoid these fees. BofA will be giving its customers various options to avoid these fees by making it compulsory for them to switch to online banking including e-payment of bills. Other than this, the customer can evade increased fees by maintaining minimum balances, taking a loan from the company or using BofA’s credit card.

By opting for e-banking, the customers as well as BofA are expected to benefit in the long run. It would be easier for the customers to keep a track of all the banking records.

Further, by paying bills electronically, the customers can avoid check printing fees and save on postages. Therefore, the company’s expenses will also get reduced as there would be no need of buying papers and sending monthly account statements.

BofA’s decision to give options to its customers is a way to prevent public outcry, which it had faced last year. In 2011, the company had decided to charge $5 per month for using the company’s debit card. However, following stiff opposition from the customers, the company had to withdraw this fee.

With almost all the major banking companies facing revenue losses due to the regulatory curbs on imposition of various service charges and overall weakness in the economy, BofA’s decision to introduce new fees can be seen as a step to increase revenues.

Similar to BofA, other major banks including JP Morgan Chase & Co. (JPM) and Wells Fargo & Company (WFC) are trying to recoup fee revenues by rolling out different plans or pushing the customers to involve in more financial activities with them.

Currently, BofA retains a Zacks #3 Rank, which translates into a short-term Hold rating.

Wal-Mart Ups Annual Dividend

Wal-Mart Stores, Inc. (WMT), with its annual dividend hike to $1.59 per share from $1.46 per share, boasts of a tradition of dividend increase since 1974 annually.

The company’s board of directors has hiked its dividend by 8.9% to $1.59 to be paid in fiscal 2013 which ends on January 13, 2013. The dividend will be paid in four equal quarterly installments of 39.75 cents per share. The first installment would be payable on April 4 to shareholders of record on March 12. We note, however, that the current dividend increase is much less than the previous years’ dividend increases of 21% in fiscal 2012, 11% in fiscal 2011 and 15% in fiscal 2010.

Further, the move comes almost two weeks after the company posted outstanding fourth quarter and fiscal 2012 earnings of $1.44 and $4.49 per share, which were 7.5% and 10.3% higher than the year-ago earnings. In addition, the company also reported better-than-expected comparable store sales last week, and paid $5.0 billion in dividends for the year.

In the recent past, The Coca Cola Company (KO) also hiked its annual dividend by 8.5% to 51 cents per share from 47 cents per share for the year 2012. The first quarterly dividend is payable on April 1, 2012 to shareholders of record on March 15, 2012.

Wal-Mart, which holds a Zacks #3 Rank implying a short-term Hold rating, has 10,130 retail units under 69 different banners in 27 countries. With fiscal year 2012 sales of approximately $444 billion, Wal-Mart employs more than 2 million associates worldwide. Over the long term, we provide a Neutral recommendation on the stock.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com

http://www.zacks.com

Read the analyst report on BAC

Read the analyst report on JPM

Read the analyst report on WFC

Read the analyst report on WMT

Read the analyst report on KO

Zacks Investment Research



More From Zacks.com

Rates

View Comments (0)