U.S. Markets open in 3 hrs 54 mins

Top Analyst Reports for JPMorgan, Boeing & NVIDIA

Mark Vickery

Friday, December 20, 2019

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 JPMorgan Chase (JPM), Boeing (BA) and NVIDIA (NVDA). 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 >>>

JPMorgan’s shares have outperformed the Zacks Major Regional Banks industry year to date (+41.6% vs. +34.2%). The Zacks analyst believes that decent loan demand, acquisition of InstaMed, opening of new branches and focus on strengthening credit card business will aid financials.

JPMorgan's shares have outperformed the industry over the past six months. The company has an impressive earnings surprise history. The bank has surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Also, enhanced capital deployment plan reflects strong balance sheet position and will enhance shareholder value.

However, the Fed’s accommodative policy will likely hamper top line growth to some extent. The company’s significant dependence on capital markets revenues makes us apprehensive, given the several geopolitical concerns. Further, the company is likely to face challenges in expanding mortgage operations. Hence, these matters are expected to hamper fee revenue growth.

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

Shares of Boeing have lost 12% in the past three months against the Zacks Aerospace & Defense industry’s decline of 4.1%. The Zacks analyst believes that the company’s proposed joint venture with Embraer is expected to strengthen its commercial business significantly. The proposed partnership is expected to be accretive to Boeing’s earnings at the start of 2020 and generate estimated annual pre-tax cost synergies of approximately $150 million by the third year.

Boeing remains the largest aircraft manufacturer globally in terms of revenues, orders and deliveries, and one of the major aerospace and defense contractors. Its proposed joint venture with Embraer is expected to strengthen its commercial business significantly.

However, its commercial business has suffering due to lower 737 deliveries, following its 737 MAX product line's grounding and subsequent costs associated with it. Consequently, its revenues, earnings and cash flow position were affected significantly.

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

NVIDIA's shares have gained 57.5% over the past six months against the Zacks General Semiconductor industry's rise of 28.9%. The Zacks analyst believes that the company is benefiting from strong growth in GeForce desktop and notebook GPUs, which is boosting gaming revenues. Solid momentum of its real-time ray tracing technology is also a positive.

NVIDIA delivered better-than-expected third-quarter fiscal 2020 results. Increase in Hyperscale demand is a tailwind for Data Center business as well. Growing adoption in the inference market is an upside too. Further, the solid uptake of AI-based smart cockpit infotainment solutions is a boon.

Additionally, strength across mobile workstation products is aiding Professional Visualization revenues. However, the company’s bleak guidance for the fourth quarter due to seasonality is a concern. Management expects strong sequential growth in Data Center to be offset by a seasonal decline in GeForce notebook GPUs and SoC modules for gaming platforms.

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

Other noteworthy reports we are featuring today include Roche (RHHBY), AstraZeneca (AZN) and GlaxoSmithKline (GSK).

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>

Mark Vickery
Senior Editor

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

Branch Expansion, Loans Aid JPMorgan (JPM), Fee Income a Woe


Strategic Mergers Aid Boeing (BA), Low 737 Deliveries Hurt


NVIDIA (NVDA) Banks on Recovery in the Data Center Business


Featured Reports

New Drugs Boost Roche (RHHBY) Amid Biosimilar Competition

Per the Zacks analyst, solid performance of Ocrevus, Perjeta, Tecentriq and Hemlibra boost Roche as legacy drugs face biosimilar competition.

AstraZeneca (AZN) Rides on Solid Pipeline, Drug Launches

The Zacks analyst likes AstraZeneca's promising late-stage pipeline that includes immuno-oncology candidates.

Glaxo's (GSK) Pipeline Growing Amid Generic Woes for Advair

The Zacks analyst likes Glaxo's efforts to boost its pipeline, especially oncology. However, a generic of its top-selling drug, Advair has been launched which is eroding the drug's sales.

Tesla's (TSLA) Gigafactory 3 Progress to Aid Amid High Capex

The Shanghai Gigafactory, wherein production is ramping up, is ahead of schedule. This is a positive catalyst for Tesla.

Dominion (D) Gains from Investment, Share Dilution a Concern

Per the Zacks analyst Dominion's plans to invest $26B to strengthen its infrastructure in the next five years will boost performance but share dilution could adversely impact its earnings.

Micron (MU) Rides on Recovery in DRAM Demand Amid Trade Woes

Per the Zacks analyst, revival in DRAM demand on the back of improved customer inventory adjustments is benefiting Micron.

Solid Balance Sheet Supports BNY Mellon (BK) Amid Low Rates

Per the Zacks analyst, solid balance sheet and efforts to improve efficiency through cost control will aid BNY Mellon. Decline in margins due to relatively lower rates will likely hurt the top line.

New Upgrades

LogMeIn (LOGM) Rides on Product Strength, Marketing Efforts

Per the Zacks analyst, LogMeIn is gaining from solid contributions of its growth-oriented products Jive and LastPass. Increasing marketing efforts in support of new GoTo brand are also a positive.

Lithia's (LAD) Acquisition of Dealerships to Boost Prospects

Per the Zacks analyst, Lithia Motors' acquisition of Williams Automotive's Honda and Toyota dealerships are expected to boost its profitability and prospects, going forward.

Advanced Energy (AEIS) Banks on Acquisition Contributions

Per Zacks analyst, Artesyn Embedded Power buyout is aiding the position of Advanced Energy in the data center computing, and telecom and networking markets. This is driving its top-line growth.

New Downgrades

Southern (SO) Wrecked by Vogtle Project Cost Overruns

The Zacks analyst is concerned that continued timing and cost overrun issues related to Southern Company's mega construction project, Vogtle, will lead to high degree of uncertainty.

Wynn Resorts (WYNN) Grapples With High Debt Burden

The Zacks analyst believes that a high debt burden makes it difficult for Wynn Resorts to finance its upcoming projects. Macroeconomic or credit market downturn may further add to its concerns.

Baked Goods & Meal Solutions Hit TreeHouse Foods (THS) Sales

Per the Zacks analyst, TreeHouse Foods' Baked Goods and Meal Solutions units are battling adverse volume/mix and currency woes. Volume declines these units is likely to dent fourth-quarter sales.


undefined undefined
 
Roche Holding AG (RHHBY) : Free Stock Analysis Report
 
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
 
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
 
GlaxoSmithKline plc (GSK) : Free Stock Analysis Report
 
The Boeing Company (BA) : Free Stock Analysis Report
 
AstraZeneca PLC (AZN) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research