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Top Analyst Reports for JPMorgan, Intel & Comcast

Mark Vickery
Top Analyst Reports for JPMorgan, Intel & Comcast

Tuesday, January 29, 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 (JPM), Intel (INTC) and Comcast (CMCSA). 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 in the past year (-9.7% vs. -14.4%). Also, the company has an impressive earnings surprise history, having surpassed expectations in three of the trailing four quarters.

Its fourth-quarter 2018 results were adversely impacted by weaknesses in trading and underwriting businesses as well as higher costs. These were partially offset by growth in loans and higher advisory fees.

The Zacks analyst thinks expansion into new markets, focus on the card business, higher rates and increasing loan demand will support profitability. Its enhanced capital deployment actions reflect strong liquidity position.

However, dismal mortgage banking performance (owing to lower origination volume) remains a major concern. Its significant dependence on capital markets is cause for concern. These factors are expected to hurt the bank's fee income growth to an extent.

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

Shares of Intel have outperformed the Zacks General Semiconductor industry in the past year, losing -4.2% vs. a decline of -17.4%. The Zacks analyst thinks Intel is benefiting from robust performance of the Data Center Group, Internet-of-Things Group, Non-Volatile Memory Solutions and Programmable Solutions Group.

These segments form the crux of Intel’s data-centric business model. The company’s strategy of expanding TAM beyond CPU to adjacent product lines like silicon photonics, fabric, network ASICs, and 3D XPoint memory is bearing fruit. Further, expanding customer base in the PSG segment drove top-line growth.

Additionally, lower spending helped in expanding operating margins. However, a declining trend in PC shipments is detrimental to business prospects of Intel, which continues to depend substantially on PC sales. Also, delay in transition to 10-nm process is a concern. Moreover, intensifying competition remains a headwind.

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

Buy-ranked Comcast’s shares have outperformed the Zacks Cable Television industry in the past year, losing -16.5% vs. -20.1%. Comcast’s fourth-quarter 2018 results benefited from solid growth in the number of residential high-speed Internet customers. Advertising revenues also increased due to higher political advertising.

The Zacks analyst thinks Comcast’s strategy to market broadband-only packages to customers is benefiting top-line growth.Expanding Wi-Fi coverage along with innovative xFi control features is improving customer experience.

Moreover, the company’s Xfinity Mobile is now used by more than one million customers. Further, the Sky acquisition expands Comcast’s international reach. Sky’s content portfolio strength is a major growth driver.

NBCUniversal’s upcoming streaming service is a key catalyst. However, the company continues to lose voice and video subscribers due to cord-cutting and stiff competition. Additionally, high debt level is a headwind.

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

Other noteworthy reports we are featuring today include Kinder Morgan (KMI), Air Products (APD) and Discover Financial (DFS).

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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, Rates Aid JPMorgan (JPM), Fee Income a Woe

Intel (INTC) Rides on AI-based Alliances & Product Rollouts

High Speed Internet Subscriber Gains Benefit Comcast (CMCSA)

Featured Reports

Kinder Morgan (KMI) to Gain on PHP Project, Debts High

The Zacks analyst thinks Kinder Morgan's proposed Permian Highway Pipeline (PHP) project will help it generate steady cash flow.

Project Investments, Productivity to Aid Air Products (APD)

While Air Products faces unfavorable currency swings, it will gain from investments in high-return projects and productivity improvement initiatives, per the Zacks analyst.

High Card Sales Aid Discover Financial (DFS), Expenses Hurt

Per the Zacks analyst, increasing card sales volume, supported by alliances and partnerships has driven its performance.

GEAR Up initiatives Aid Comerica (CMA), High Expenses A Woe

Per the Zacks analyst, Comerica's GEAR Up initiatives remains encouraging. It also continues to benefit from easing margin pressure.

Passenger Revenues Aid Alaska Air (ALK) Amid High Costs

The Zacks analyst likes the growth in passenger revenues at Alaska Air Group. Efforts to reward shareholders are encouraging too.

Loans Aid Hilltop Holdings (HTH), Pressure on Margins a Woe

Per the Zacks analyst, rise in demand for loans and inorganic growth efforts will support Hilltop Holdings' revenues, while pressure on margins (despite rising rates) remains a big near-term concern.

Solid Demand for Radixact & CyberKnife Drives Accuray (ARAY)

The Zacks analyst is optimistic about Accuray's strength in China.

New Upgrades

United Rentals (URI) Rides on Acquisitions & Robust Demand

Per the Zacks analyst, prudent investments in fleet, accretive acquisitions and robust end-market demand are the major growth drivers for United Rentals

Improving User Engagement, Partnerships to Drive Snap (SNAP)

Per the Zacks analyst, extended partnerships with the likes of Comcast and Viacom related to new content production are expected to boost Snap's audience base as well as user engagement.

Rising Fee Income & Acquisitions Support BancorpSouth (BXS)

Per the Zacks analyst, BancorpSouth's efforts to drive top-line strength through improving fee income remain encouraging. Moreover, the company's various strategic deals act as a tailwind.

New Downgrades

Higher Energy Costs, Input Cost Headwinds Ail Allegheny (ATI)

Per the Zacks analyst, elevated energy costs may weigh on the results of Allegheny's HPMC unit. The company also faces raw material pricing headwinds at its FRP segment.

Rising Operating Expenses, Legal Issues Hurt Navient (NAVI)

Per the Zacks analyst, mounting expenses due to Navient's investments in technology platforms owing to its business initiatives remains a major headwind. Also, pending legal issues remain a woe.

Scientific Games (SGMS) Hurt By Competition, High Debt Level

Per the Zacks analyst, Scientific Games is negatively impacted by intensifying competition and a highly leveraged balance sheet.

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