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Top Analyst Reports for Bank of America, Wells Fargo & Intuit

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Tuesday, May 18, 2021

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Bank of America Corporation (BAC), Wells Fargo & Company (WFC), and Intuit Inc. (INTU). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Shares of Bank of America have gained +92.4% in the past one-year period against the Zacks Banks - Major Regional industry’s gain of +88.8% and the S&P 500 index's +43% gain in the same time period. This reflects the improved interest rate backdrop and the company's greater leverage to higher interest rates relative to its peers. 

The Zacks analyst believes that the company’s first-quarter 2021 results reflected solid capital markets performance, big reserve release and adverse impact of muted loan demand. Further, opening of new branches, enhanced digital offerings, strategic buyouts and efforts to manage expenses will aid profitability in the quarters ahead.

However, low interest rates and no near-term chance of change in the same are expected to keep hurting the bank’s margins and interest income. Also, faltering loan demand poses a concern. But a strong balance sheet and liquidity position are expected to continue aiding its financials. Further, the company will keep enhancing shareholder value through sustained capital deployments.

(You can read the full research report on Bank of America here >>>)

Shares of Wells Fargo have outperformed the Zacks Banks - Major Regional industry in the last six-month period (+83.1% vs. +50.1%). Additionally, the company’s earnings surprise history is impressive, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters.

The Zacks analyst believes that the company's efforts to enhance compliance and risk-management capability, along with streamlining initiatives, seem encouraging. Also, strong deposits balance depicts robust liquidity position. Declining expenses due to its cost savings efforts might aid bottom-line growth.

However, revenues are affected by low rates and legal hassles pose a concern. Further, restrictions on asset growth placed by Federal reserve have taken a toll on the company's loan growth ability. Nevertheless, it carries less credit risk in case of any economic downturn.

(You can read the full research report on Wells Fargo here >>>)

Shares of Intuit have outperformed the Zacks Computer – Software industry in the last one-year period (+46.3% vs. +34.2%). The Zacks analyst believes that Intuit is benefiting from strong momentum in online ecosystem revenues and solid professional tax revenues.

The TurboTax Live offering is also driving growth in the Consumer tax business. Solid momentum in the company’s lending product, QuickBooks Capital, remains a positive. Moreover, the company’s strategy of shifting its business to cloud-based subscription model will help generate stable revenues over the long run.

Nonetheless, Intuit’s near-term prospect looks gloomy as the global lockdown amid the coronavirus crisis has affected small businesses, posing risks to its revenue growth. Additionally, higher costs and expenses due to increased investments in marketing and engineering teams are likely to continue impacting bottom-line results in the near term.

(You can read the full research report on Intuit here >>>)

Other noteworthy reports we are featuring today include Infosys Limited (INFY), Dollar General Corporation (DG) and Lennar Corporation (LEN).

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Sheraz Mian

Director of Research

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

New Branches, Digitization Aid BofA (BAC) amid Lower Rates

Cost Control, Streamlining Initiatives Aid Wells Fargo (WFC)

Intuit (INTU) Rides on Product Refresh, Higher Subscriptions

Featured Reports

Permian Basin Focus, Improving Prices Aid Occidental (OXY)

Per the Zacks analyst Occidental's acquisition of Anadarko expanded its operation and boosted hydrocarbon production from Permian Basin.

Cincinnati Bell (CBB) Rides on Fiber Assets for Greater Scale

Per the Zacks analyst, Cincinnati Bell is poised to benefit from augmented geographic footprint in IT services as it aims to transform itself into a technology firm with contemporary fiber assets.

Strong Domestic Business-to-Business Sales Aid Inogen (INGN)

The Zacks analyst is upbeat about the robust demand of Inogen's portable oxygen concentrators for COVID-19 patients upon hospital discharge.

Lower SG&A Expense Aids Lennar (LEN) Amid Rising Input Costs

Per the Zacks analyst, Lennar's focus on improvement in the SG&A line along with resilient housing market to drive growth.

Digital Transformation, AI Proliferation Aid Infosys (INFY)

Per the Zacks analyst, Infosys is benefiting from large deal wins and higher investments by clients in digital transformation, artificial intelligence and automation.

Soft Same-Store Sales to Hurt Dollar General's (DG) Top Line

Per the Zacks analyst, pull back in pandemic-induced demand is likely to hurt Dollar General's top Line. Management expects same-store sales to decline in the band of 4-6% during fiscal 2021.

Cost Controls Aid American Airlines (AAL) Amid COVID-19 Woes

The Zacks analyst is impressed by the carrier's cost-control measures, which are leading to improvement in the cash burn rate.

New Upgrades

Higher Nitrogen Demand and Prices Aid CF Industries (CF)

Per the Zacks analyst, CF Industries will gain from higher demand for nitrogen fertilizers in major markets. Higher nitrogen prices amid lower supply availability will also drive its margins.

Top-Tier Williston Basin Acreage to Aid Whiting (WLL)

The Zacks analyst believes that Whiting Petroleum's top-tier, deep drilling inventory in North Dakota's Williston Basin will result in attractive oil production growth.

Dillard's (DDS) Inventory Management Efforts Aid Margins

Per the Zacks analyst, better inventory levels and solid demand led to lower markdowns which in turn aided Dillard's margins. This along with reduced costs drove bottom line growth in Q1.

New Downgrades

Corcept's (CORT) High Reliance on Korlym for Revenues a Woe

Per the Zacks analyst, Corcept is solely dependent on lead drug Korlym for revenues, which is a concern. Stiff competition from other companies in the target market also remains a headwind.

Rising Premiums Drive CNA Financial (CNA), Cat Loss Ail

Per the Zacks analyst, CNA Financial is poised to row on rising premiums driven by strong rate and higher new business. However, exposure to cat loss inducing volatility and high expenses concern.

Competition, Delayed Deals Hurt Science Applications (SAIC)

Per the Zacks analyst, Science Applications is facing delays in contracts due to ongoing protests with the Government Accountability Office. Moreover, neck-and-neck competition with CACI is a concern.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Wells Fargo & Company (WFC) : Free Stock Analysis Report
Lennar Corporation (LEN) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
Infosys Limited (INFY) : Free Stock Analysis Report
Dollar General Corporation (DG) : Free Stock Analysis Report
Bank of America Corporation (BAC) : Free Stock Analysis Report
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