Top Stock Reports for Alphabet, JPMorgan & Comcast
Friday, June 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 Alphabet (GOOGL), JPMorgan (JPM) 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 >>>
Alphabet’s shares have outperformed the Zacks Internet Services industry in the last year (the stock is up +21.2% vs. a +9.1% increase for the industry). The Zacks analyst likes the company's focus on innovation, AI, cloud, home automation space, strategic acquisitions and Android OS. These initiatives should continue to generate strong cash flows.
Alphabet's recent partnership with PayPal will strengthen its presence in the digital payment market. Alphabet has shown good execution to date, more or less maintaining its dominant share in a competitive, fast-growing search market. Its diversification strategy is also positive, but requires significant investment and involves uncertain payback periods, particularly since these efforts are at the cutting edge of technology.
However, the company's increased spending on its consumer gadgets, YouTube video app and cloud computing services remain concerns. Also, increasing litigation issues could continue to impact the company’s profits.
(You can read the full research report on Alphabet here >>>).
Shares of JPMorgan have outperformed the Zacks Major Regional Banks industry over the past year (+14.8% vs. +6.3%). This price performance is backed by impressive earnings surprise history, with the company surpassing expectations in each of the trailing four quarters.
The bank’s efforts to expand into new markets, focus on card business, higher interest rates and rising loan demand will likely continue to benefit its financials. Also, lower tax rates will aid profitability in the quarters ahead. Further, enhanced capital deployment plan reflects strong balance sheet.
However, fee income growth challenges (mainly due to a slowdown in capital market activities and dismal mortgage banking performance) remains a major concern for the company. Also, litigation hassles make us apprehensive.
(You can read the full research report on JPMorgan here >>>).
Comcast’s shares have underperformed the Zacks Cable Television industry year to date, losing -18.5% vs. -17.4%. The Zacks analyst thinks Comcast is benefiting from an increasing number of high speed internet subscribers. Also, continuing investment on Theme Parks is a tailwind.
The nationwide rollout of wireless services under the Xfinity Mobile brand is expected to expand subscriber base. Moreover, the company’s plan to buy Fox’s assets will significantly expand its content portfolio and international presence. Moreover, acquisition will boost Comcast’s competitive position against the likes of Netflix and Amazon Prime. And the Sky deal is likely to provide synergies worth $500 million.
Estimates have remained stable lately ahead of company's Q2 earnings release. However, the debt level is expected to shoot up due to the higher bid for Fox’s assets and Sky. Moreover, the company continues to lose voice and video subscribers due to cord-cutting and stiff competition, which remains a concern.
(You can read the full research report on Comcast here >>>).
Other noteworthy reports we are featuring today include American Express (AXP), PNC Financial (PNC) and Micron Technology (MU).
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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
Alphabet (GOOGL) Rides on Diversification, Risks Remain
Interest Rates, Loans Aid JPMorgan (JPM), Fee Income a Woe
Comcast (CMCSA) Banks On Wireless Service, Competition Hurts
Featured Reports
Strong Customer Card Spending, Balance Sheet Aid AmEx (AXP)
Per the Zacks analyst, higher card spending due to a strong economy has led to revenue growth. Its strong balance sheet enables business investments which should drive long-term growth.
Cost Savings Aid PNC, High Exposure to Commercial Loans Ails
Per the Zacks analyst, PNC Financial's focus on driving operational efficiency through cost-containment efforts are encouraging. However, exposure to risky loan portfolio remains a key concern.
Micron (MU) Gains from Surging Demand for DRAM Products
Per the Zacks analyst, Micron is benefiting from a robust demand environment across all business and product segments. A higher mix of server and graphics DRAM offerings is assisting revenue growth.
Acquisitions, Revenue Growth Aid Synchrony Financial (SYF)
Per the Zacks analyst the acquisitions of Citi Health Card portfolio and GPShopper, Loop Commerce should aid its inorganic growth.
Growing Revenues, Strong Balance Sheet Aid Centene (CNC)
Per the Zacks analyst revenues have grown led by expansion into new markets and membership growth.
American Eagle's (AEO) Sturdy Comps Run to Propel Top-Line
Per the Zacks analyst, enhanced online and in-store customer experiences at both brands due to able use of omni-channel strategies should drive sales.
Value Over Volume Strategy to Fuel Conagra (CAG) Top Line
Per the Zacks analyst, Conagra's value over volume strategy is likely to boost sales through innovations, new merchandising, distribution and more.
New Upgrades
UAE Offshore Stakes to Boost PetroChina (PTR)
The Zacks analyst believes that PetroChina's recent acquisition of stakes in two UAE offshore concessions should optimize its asset portfolio and boost its revenues and profits going forward.
Restructuring Initiatives to Aid Molina Healthcare (MOH)
Per the Zacks analyst the company's restructuring and profitability improvement plan should streamline its organizational structure to improve efficiency and restore profitability.
D.R. Horton's (DHI) Solid Backlog Position to Drive Growth
D.R. Horton is poised to benefit in fiscal 2018 from expanding operations in Texas with its recent Forestar buyout and robust backlog position ($4.8 billion as of Mar 31, 2018), per the Zacks analyst.
New Downgrades
AstraZeneca (AZN) Faces Branded, Generic Drug Competition
Per the Zacks analyst, AstraZeneca is facing intense competition from large as well as small and mid-sized pharma companies. Moreover, generic competition has put significant pressure on the company.
Shaw Communications (SJR) Hurt By Internet Subscriber Loss
Per the Zacks analyst, loss of subscribers in the Wireline business doesn't bode well Shaw Communications' top-line growth. Increasing competition is also hurting revenue growth.
Achillion's (ACHN) Early Stage Pipeline Dependence a Concern
Per the Zacks analyst, Achillion's Factor D pipeline candidates are in early stage of clinical development, which is a concern as the company has no approved products.n
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The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report
Micron Technology, Inc. (MU) : Free Stock Analysis Report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Comcast Corporation (CMCSA) : Free Stock Analysis Report
American Express Company (AXP) : Free Stock Analysis Report
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