Top Stock Reports for Apple, JPMorgan & Union Pacific
Wednesday, December 23, 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 Apple (AAPL), JPMorgan Chase (JPM) and Union Pacific (UNP). 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 >>>
Apple shares have outperformed the broader market in the year to date period (+79.6% vs. +16.3%). The Zacks analyst believes that the company is benefiting from continued momentum in the Services segment, driven by a robust performance of App Store, Apple Music, video and cloud services.
Moreover, demand remains healthy for other Apple devices including iPad, Mac and Wearables. Although Apple didn’t provide any guidance due to uncertainties triggered by the coronavirus pandemic, it expects iPhone sales to grow in the first quarter of fiscal 2021.
Apple’s near-term prospects are bright, driven by new iPhones that support 5G, revamped iPad and Mac line-up of devices, health-focused Apple Watch 6 and robust growth in the Services business. Moreover, a solid balance sheet and strong cash flow generating ability are key catalysts. However, increasing scrutiny and legal woes over App Store are headwinds.
(You can read the full research report on Apple here >>>)
Shares of JPMorgan have lost -11.6% over the past year against the Zacks Major Regional Banks industry’s loss of -21.1%. The Zacks analyst believes that branch openings in new regions, acquisition of InstaMed, strong mortgage banking business and focus on credit card operations are likely to continue supporting the bank's financials.
Further, despite restriction of capital deployments with an to conserve liquidity, the company’s cash position remains robust. However, the Federal Reserve’s accommodative policy and near-zero rates are expected to hurt the bank’s interest income and margins.
Additionally, coronavirus-induced economic downturn is likely to continue hampering business activities. Thus, loan demand will be muted in the near term.
(You can read the full research report on JPMorgan here >>>)
Union Pacific’s shares have gained +21.7% over the past six months against the Zacks Rail industry’s rise of +28.4%. The Zacks analyst is pleased by the company's efforts toward promoting safety and enhancing productivity.
Echoing the last few quarters' performance, Union Pacific’s fourth-quarter 2020 results are expected to be hurt by dwindling freight revenues due to coronavirus-induced depressed volumes. Deterioration in the debt-to-EBITDA ratio is an added woe.
However, efforts to control costs, courtesy of the precision scheduled railroading model, are a positive, particularly, in the wake of revenue concerns. Mainly owing to cost-cutting efforts, the operating ratio (operating expenses as a % of total revenues) is predicted to improve.
(You can read the full research report on Union Pacific here >>>)
Other noteworthy reports we are featuring today include Pfizer (PFE), Shopify (SHOP) and Lockheed Martin (LMT).
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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
Robust Portfolio, Services Strength to Benefit Apple (AAPL)
New Branches, Loan Balance Aid JPMorgan (JPM) Amid Low Rates
Cost Cuts Amid Volume Weakness Boost Union Pacific (UNP)
Featured Reports
Pfizer's (PFE) COVID-19 Vaccine Development Progress Rapid
The Zacks analyst believes that Pfizer has progressed rapidly with the development plans of its COVID-19 vaccine candidate which is now approved for emergency use in more than 40 countries.
Product Rollouts & Growing Merchant Base Aid Shopify (SHOP)
Per the Zacks analyst, Shopify is riding on solid uptake of new applications amid coronavirus crisis led e-commerce boom.
Order Growth Boosts Lockheed (LMT), Tiff With Turkey Ails
Per the Zacks analyst, steady order flow continues to boost Lockheed's revenue growth.
Credit Card Business Aid Capital One (COF), High Costs a Woe
Per the Zacks analyst, Capital One's solid card and online banking business, along with restructuring efforts will aid revenues.
Business Streamlining, Solid Balance Sheet Aid MetLife (MET)
Per the Zacks analyst, the separation of a number of low-return high-risk businesses has enabled the company to focus on core areas; its strong capital position aids strategic investments.
General Mills (GIS) Benefits From High At-Home Consumption
Per the Zacks analyst, General Mills (GIS) is gaining from demand due to coronavirus-led higher at-home consumption.
Growing Top Line Aids, High Leverage Ails Centene (CNC)
Per the Zacks analyst, its rising revenues on the back of buyouts, solid Health Insurance Marketplace business, and expansions poise it well for growth.
New Upgrades
Guidewire (GWRE) Benefits from Higher Subscription Revenues
Per the Zacks analyst, Guidewire is benefitting from increases in subscription revenues and robust demand for its cloud-based products. Further, strategic acquisitions and collaborations bode well.
Xerox (XRX) Rides on Project Own It Transformation Program
The Zacks analyst believes that Xerox's bottom line has been benefiting from Project Own It, intended to increase productivity and operational efficiency, reduce costs, and realign business.
Product Innovation & Cost Control to Drive Manitowoc (MTW)
Per the Zacks analyst, product innovation, a solid pipeline of acquisitions as well as focus on cost controls, and increasing productivity are likely to drive Manitowoc's results.
New Downgrades
Dismal Comps & Traffic Continues to Hurt Darden (DRI)
Per the Zacks analyst, dismal comps and traffic owing to the coronavirus pandemic are likely to hurt Darden's performance in the coming quarters.
Whirlpool's (WHR) Asia Business Operating Margins Soft
Per the Zacks analyst, Whirlpool has been witnessing soft demand in its Asia business, reflecting negative EBIT in China.
Weak Market Demand and High Debt Affect Allegion (ALLE)
Per the Zacks analyst, Allegion is struggling with weakness across its commercial and institutional end markets, due to the coronavirus outbreak-led issues. Also, the high debt level poses a concern.
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Union Pacific Corporation (UNP) : Free Stock Analysis Report
Shopify Inc. (SHOP) : Free Stock Analysis Report
Pfizer Inc. (PFE) : Free Stock Analysis Report
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
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