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Top Analyst Reports for JPMorgan, PayPal & Novo Nordisk

Sheraz Mian
·6 mins read

Friday, September 18, 2020

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), PayPal (PYPL) and Novo Nordisk (NVO). 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 shares have done better than peer group (-29.3% vs. -34.7%), but the stock has nevertheless lagged the broader market given low interest rates and the pandemic-driven economic weakness. That said, the Zacks analyst believes that JPMorgan's robust loan and deposit balances, acquisition of InstaMed, strong liquidity position and initiatives to expand the branch network in new markets will continue supporting profitability.

Also, the company will be keeping the dividend level unchanged in the third quarter, following the clearance of annual stress test results. However, the Fed’s accommodative policy and near-zero rates are expected to hurt the bank’s interest income and margins.

Further, coronavirus-induced economic downturn will likely continue to hamper business activities. Thus, loan growth will likely be muted in the near term.

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

Shares of PayPal have gained +65.1% over the past year against the Zacks Internet Software industry’s rise of +54.4% on the back of robust growth in total payments volume owing to increasing net new active accounts.

Further, strengthening customer engagement on the company’s platform is a major positive. Also, Venmo’s improving monetization efforts and rising adoption rate across various platforms are aiding the total active accounts. Additionally, growing momentum of core peer to peer and PayPal Checkout experiences is a tailwind.

However, increasing credit loss reserves owing to macroeconomic projections on account of coronavirus is a serious matter of concern. Further, intensifying digital payment competition is a risk.

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

Novo Nordisk shares have gained +34% over the past six months against the Zacks Large Cap Pharmaceuticals industry’s rise of +22.5%. The Zacks analyst believes that the initial uptake of Rybelsus looks good. Ozempic, a once-weekly GLP-1, is off to a solid start. The label of Ozempic was further expanded by the FDA to include a cardiovascular indication.

Novo Nordisk has one of the broadest diabetes portfolios in the industry. Tresiba, Victoza, Ozempic, Xultophy and Saxenda maintain momentum for the company. Label expansion of existing drugs will further boost sales for the company.

However, lower realized prices in the Unites States, loss of exclusivity for products in hormone replacement therapy and intensifying competition will impact sales. Moreover, the impact of COVID-19 will affect the performance in the upcoming quarters.

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

Other noteworthy reports we are featuring today include Facebook (FB), Roche (RHHBY) and Toyota Motor (TM).

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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

Card Focus, New Branches Aid JPMorgan (JPM) Amid Low Rates

Portfolio Strength Benefits PayPal (PYPL) Amid Competition

Novo Nordisk (NVO) Boasts Strong Pipeline Amid Competition

Featured Reports

Instagram Strength Aids Facebook (FB) Amid Advertiser Exodus

Per the Zacks analyst, Facebook is benefiting from improving engagement levels for Instagram.

New Drugs Propel Roche (RHHBY) Amid Biosimilar Competition

Per the Zacks analyst, Roche maintains momentum propelled by solid sales of new drugs like Ocrevus, Tecentriq and Hemlibra.

Collaboration with Subaru & Mazda to Aid Toyota (TM)

Strategic alliances with Subaru and Mazda are likely to drive Toyota's ambitious electrification goals and boost its growth prospects, per the Zacks analyst.

ExxonMobil (XOM) Banks on Guyana Discoveries, Refining Weak

ExxonMobil estimates gross recoverable resources of more than 8 billion oil-equivalent barrels from offshore Guyana discoveries. However, weak refining business concerns the Zacks analyst.

Altria (MO) to Benefit From Solid Oral Tobacco Products Unit

Per the Zacks analyst, Altria is set to gain on efforts to expand oral tobacco products unit, wherein revenues rose 9.6% in second quarter.

Low Costs Aid CSX Amid Coronavirus-Induced Volume Softness

Per the Zacks analyst, significant reduction in costs, primarily due to increased operational efficiency and low fuel prices, are keeping CSX afloat amid coronavirus-led weakness in volumes.

Products & Cost Actions Aid Stanley Black (SWK) Amid Pandemic

Per the Zacks analyst, Stanley Black (SWK) is poised to benefit from growing recognition for do-it-yourself products as well as those related to security and health.

New Upgrades

FedEx (FDX) Rides High on Residential-Delivery Volume Growth

The Zacks analyst lauds the uptick in revenues at FedEx's (FDX) Ground unit (up 36% in first-quarter fiscal 2021). Residential-delivery volume growth in the current scenario is aiding results.

Higher Demand & Operating Efficiency to Aid Lennar (LEN)

Per the Zacks analyst, Lennar is poised to benefit from prudent land investment strategies, strength in the housing market and operating efficiency.

Shift in Demand to Essentials & e-Commerce Aid Newell (NWL)

Per the Zacks analyst, consumers' shifting preference for essential items is benefiting Newell Brands' Food business segment. Also, robust e-commerce sales and Project FUEL plan act as growth drivers.

New Downgrades

Weakening Memory Chip Demand to Hurt Micron's (MU) Prospects

Per the Zacks Analyst, Micron's near-term performance might be hurt by the bleak memory chip demand as customers are adjusting inventories in response to the economic recession caused by COVID-19.

Weak Industrial Demand Weighs on PPG Industries (PPG)

According to the Zacks analyst, soft industrial demand due to reduced customer activities in the wake of the coronavirus pandemic will hurt the company's sales volumes.

USA Compression (USAC) Hurt by High Debt, Lower Volumes

The Zacks analyst believes that USA Compression Partners' high debt-to-capitalization of 67% is a concern. Further, the coronavirus-induced decline in volumes is likely to result in lower profits.

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Toyota Motor Corporation (TM) : Free Stock Analysis Report
Roche Holding AG (RHHBY) : Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
Novo Nordisk AS (NVO) : Free Stock Analysis Report
JPMorgan Chase Co. (JPM) : Free Stock Analysis Report
Facebook, Inc. (FB) : Free Stock Analysis Report
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