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Top Research Reports for Bank of America, Home Depot & Philip Morris

Mark Vickery

Thursday, October 3, 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 Bank of America (BAC), The Home Depot (HD) and Philip Morris International (PM). 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 >>>

Bank of America’s shares have outperformed the Zacks Major Regional Banks industry year to date (13% vs. 12.8%). The Zacks analyst believes that opening of branches in new regions, improved digital offerings, decent loan growth and efforts to control costs will support profitability amid Fed’s accommodative monetary policy stance.

Further, efforts to focus more on consumer banking business have started bearing fruits The company's enhanced capital deployment actions reflect a strong balance sheet position. However, dismal performance of capital markets continues to hurt the company’s investment banking and trading businesses, which, in turn, will hamper fee income growth.

Litigation issues related to its business misconducts in the pre-crisis period are likely to lead to higher legal costs.

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

Shares of Home Depot have gained 12.5% in the past six months, outperforming the Zacks Retail Building Products industry’s rise of 5.8% over the same period. The Zacks analyst believes that this was made possible by a positive earnings surprise trend recorded for more than five years, which continued in second-quarter fiscal 2019.

Earnings benefited from progress on strategic investments as well as a favorable U.S. consumer backdrop and a steady housing market. Meanwhile, the company’s top line lagged estimates but improved year over year on robust comps performance. Its efforts to provide an interconnected shopping experience, with innovative products and improved productivity, position it well for growth.

Despite these gains, lumber price deflation remained a drag on the company’s sales and comps in the fiscal second quarter. Further, it slashed its sales and comps view for fiscal 2019 on lumber price deflation and fears of potential impact of the newly enacted tariffs.

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

Philip Morris’ shares have lost 4.9% in the past three months, compared with the Zacks Tobacco industry’s decline of 8.9%. The Zacks analyst believes that a sturdy bottom-line trend along with efficient pricing and gains from growth of IQOS in the RRPs arena has been boosting the stock.

These upsides had a positive impact on second-quarter results, wherein earnings and revenues beat the Zacks Consensus Estimate. Also, earnings improved year on year. Further, management raised view for 2019.

However, persistent softness in the cigarette unit is weighing on Philip Morris’ top-line performance. Cigarette shipment volumes are expected to continue declining in 2019. The unit is being weighed down by stringent policies and fading consumer interests. Moreover, unfavorable currency movements are a threat.

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

Other noteworthy reports we are featuring today include NextEra Energy (NEE), AstraZeneca (AZN) and Eli Lilly (LLY).

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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 Openings, Digital Focus Aid BofA (BAC), Trading A Woe


Focus on Pro Customers to Aid Home Depot's (HD) Top Line


Reduced Risk Products to Keep Driving Philip Morris (PM)


Featured Reports

Investment in Infrastructure and Renewable Aid NextEra (NEE)

Per the Zacks analyst, NextEra's $50 to $55B investment in 2019-2022 period to generate more electricity from renewable sources and expand its transmission and distribution lines.

Cancer Drugs Aid AstraZeneca's (AZN) Return to Sales Growth

The Zacks analyst points out that AstraZeneca returned to product sales growth in 2018 with the momentum continuing in 2019 on the back of its cancer drugs, Lynparza, Tagrisso and Imfinzi.

New Drugs to Drive Lilly's (LLY) Sales Amid Generic Pressure

Per the Zacks analyst, higher demand for newer drugs should drive Lilly's sales in the second half.

Colgate's (CL) Innovative Product-Lines to Boost Top Line

Per the Zacks analyst, Colgate's innovations in 2019 will include the re-launch of Colgate Total and Hill's Science Diet.

V.F. Corp (VFC) to Gain from Solid Direct-to-Consumer Sales

Per the Zacks analyst, V.F. Corp is benefiting from its direct-to-consumer business that grew 14% in the recent quarter.

Royal Gold (RGLD) Rides on New Mines & Higher Gold Prices

Per the Zacks analyst, Royal Gold will benefit from the ramping up of new mines and focus on acquisitions aided by its strong balance sheet as well as higher gold prices.

BlackBerry (BB) Rides on Strong Product Cycle & Investments

Per the Zacks analyst, BlackBerry's strong product cycle, including new launches in the next six months, instills optimism. It continues to invest in the right opportunities to drive long-term growth.

New Upgrades

Qualcomm (QCOM) Redefines Mobile Ecosystem With Novel Chips

Per the Zacks analyst, Qualcomm has redefined the computing and mobile ecosystem with 5G system level solutions spanning sub-6, gigahertz and millimeter wave bands and 150 5G design wins to date.

Gartner (IT) Benefits From High-Quality Analysis Offering

The Zacks analyst believes that Gartner's high-quality, timely, thought-provoking and comprehensive analysis offering helps it to counter growing competition.

Solid Cost Savings to Drive Molson Coors' (TAP) Bottom Line

Per the Zacks analyst, Molson Coors' cost-saving initiatives focus on reducing overhead costs to boost profitability. Robust pricing and cost savings partly aided earnings in second-quarter 2019.

New Downgrades

Increasing Competition Will Hurt Exelixis' (EXEL) Cabometyx

Per the Zacks analyst, while momentum in lead drug Cabometyx has been impressive, an increase in competition by new treatments and dependence on one drug for growth pose challenge for Exelixis.

FactSet (FDS) Grapples With Pricing Pressure, Competition

The Zacks analyst believes that stiff competition and pricing pressure continue to act as major headwinds for FactSet thereby weighing on its revenues and market share.

Weakness in Engine Products Segment Hurts Donaldson (DCI)

Per the Zacks Analyst, Donaldson's sales will continue to be hurt by weak Engine Products Segment due to softness in the first-fit on-road & off-road businesses. High operating costs remain concerns.


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Philip Morris International Inc. (PM) : Free Stock Analysis Report
 
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
 
Eli Lilly and Company (LLY) : Free Stock Analysis Report
 
The Home Depot, Inc. (HD) : Free Stock Analysis Report
 
Bank of America Corporation (BAC) : Free Stock Analysis Report
 
AstraZeneca PLC (AZN) : Free Stock Analysis Report
 
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