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Top Research Reports for Nike, Bank of America & Chubb

Mark Vickery
Top Research Reports for Nike, Bank of America & Chubb

Tuesday, May 29, 2018

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 Nike (NKE), Bank of America (BAC) and Chubb (CB). 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 >>>

Nike’s shares have outperformed the Zacks Shoes and Retail Apparel industry over the last six months (+19.5% vs. +17.3%), driven by strength in international business and the global NIKE Direct business which has been aiding its quarterly performance. Notably, the company delivered top- and bottom-line beat in third-quarter fiscal 2018 which also marked the 23rd straight earnings beat.

Nike closed the third quarter with expectations of a trend reversal in its North America business in the fourth quarter, backed by the introduction of new innovation platforms and differentiated customer experiences in the marketplace. Consequently, it provided robust guidance for fourth-quarter fiscal 2018 and initial view for fiscal 2019. However, its higher SG&A expenses are likely to continue hurting results in the fourth quarter.

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

Bank of America’s shares have outperformed the Zacks Major Regional Banks industry over the last six months, gaining +7% vs. +1.6%. The company possesses an impressive earnings surprise history, beating expectations in each of the trailing four quarters. Its first quarter 2018 results benefited from higher rates, increase in equity trading income and lower expenses.

The Zacks analyst thinks increase in loan and deposit balances, rising interest rates, and efforts to manage expenses as well as expand into new markets will support profitability. However, a fall in mortgage banking income due to lower volumes and a decline in refinancing activity along with uncertainty related to performance of capital markets remain major concerns. These are expected to hurt the bank's revenues to some extent.

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

Chubb’s shares have lost -12.2% over the past six months, underperforming the Zacks Property, Casualty and Title industry, which has declined -0.2% over the same period. Chubb’s first-quarter 2018 earnings beat expectations but deteriorated year over year on higher catastrophe loss.

However, Chubb stands a good chance of leading the P&C space, benefiting from compelling products as well as services. The company’s inorganic growth story is impressive, helping it achieve a higher long-term ROE. Increased scales, efficiencies and a solid balance sheet will give Chubb a competitive edge. A strong capital position aids Chubb to boost shareholders’ value and invest in strategic initiatives to drive growth.

The company is on track to achieve annual run-rate integration-related savings of $875 million by the end of 2018. But, exposure to cat loss induces volatility in underwriting profitability. Escalating expenses too weigh on margin expansion.

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

Other noteworthy reports we are featuring today include DISH Network (DISH), Hawaiian Electric (HE) and Ameren (AEE).

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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

International & Online Business Aid NIKE's (NKE) Performance

Branch Opening, Higher Rate Aid BofA (BAC), Fee Income a Woe

Higher Premiums Aid Chubb Limited (CB), Rising Costs Ail

Featured Reports

Petrobras (PBR) Aided by Free Cash Flow, Diesel Pricing Hurt

While appreciating Petrobras' strong free cash flow performance, the Zacks analyst is concerned over lost revenues from diesel price cuts.

Williston Acreage to Buoy Whiting (WLL) Amid High Debt Load

The Zacks analyst likes Whiting Petroleum's strategic acreage position in North Dakota's Williston Basin and low oil well costs.

Passenger Revenue Growth Aids Copa (CPA), Fuel Costs Ail

The Zacks analyst likes the company's efforts to modernize its fleet.

Strong Energy Backlog Drives Astec (ASTE) Amid Inflation

Per the Zacks Analyst, Astec will gain from strong backlog in Energy Group.

Partnerships with Amazon And Others to Drive Dolby (DLB)

Per the Zacks analyst, Dolby's partnerships with industry leaders like Apple, Google & Amazon will boost its market traction.

Sling TV Subscriber Growth, Pay-TV Resizing Aids DISH (DISH)

Per the Zacks analyst, DISH's focus on retaining DISH TV subscriber base is paying off, as reflected by lower churn rate.

Varian Medical (VAR) Gains From Flagship Halcyon Platform

Varian Medical continues to gain from its flagship Halcyon cancer treatment platform.

Dr Pepper Snapple (DPS) Strong on RCI & Marketing Programs

The covering analyst stresses that Rapid Continuous Improvement (RCI) program drives revenues and productivity.

New Upgrades

Ameren Corp (AEE) aided by Investments and Stable Financials

Per the Zacks Analyst, Ameren Corp (AEE) expects to invest up to $11.4 billion on its utilities. It's stable financial position also maximizes shareholder value through regular dividend payments.

Achillion (ACHN) Focuses on Early Stage Pipeline and Cost Cuts

Per the Zacks analyst, Achillion's restructuring initiatives is planned to save $10 million in 2018 and focus on its existing early to mid-stage factor D inhibitor candidates.

New Downgrades

Dr. Reddy's (RDY) North America Unit under Pricing Pressure

Per the Zacks analyst, Dr. Reddy's North America base business is witnessing pricing pressures due to enhanced channel consolidation and increased competitive pressure on sales of some of its key gene

Strict Regulations and Rising Expenses hurt CMS Corp. (CMS)

Per the Zacks Analyst, stringent environmental regulations on curbing carbon emissions hurt CMS Corp. (CMS). Also, rising expenses related to removal and disposal of coal ash remains a major concern.

Hawaiian Electric (HE) is hurt by Third-Party Fuel Dependency

Per the Zacks Analyst, Hawaiian Electric (HE) heavily depends on third-party suppliers for fuel and purchased power. Any delay in the supply of fuels may impact the company's performance adversely.

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NIKE, Inc. (NKE) : Free Stock Analysis Report
Hawaiian Electric Industries, Inc. (HE) : Free Stock Analysis Report
DISH Network Corporation (DISH) : Free Stock Analysis Report
Chubb Limited (CB) : Free Stock Analysis Report
Bank of America Corporation (BAC) : Free Stock Analysis Report
Ameren Corporation (AEE) : Free Stock Analysis Report
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