Top Stock Reports for Bank of America, Qualcomm & ConocoPhillips

Thursday, March 10, 2022

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 Corp. (BAC), Qualcomm Inc. (QCOM) and ConocoPhillips (COP). 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 >>>

Shares of Bank of America have outperformed the Zacks Banks - Major Regional industry over the past year (+9.8% vs. -0.2%). Bank of America’s earnings have outpaced the Zacks Consensus Estimate in each of the trailing four quarters. Its fourth-quarter 2021 results reflect the impacts of rising loan demand, robust investment banking (IB) performance and lower rates.

The Zacks analyst believes that opening new financial centers, enhancing digital capabilities and initiatives to manage expenses, along with a strong balance sheet and liquidity position, rise in loan demand and solid IB pipeline, will aid the company’s revenues.

The company will keep enhancing shareholder value through impressive capital deployment activities. However, the low-interest-rate environment is expected to keep hurting the company's margins and net interest income in the near term. Normalization of the trading business is likely to hamper fee income growth to some extent.

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

Shares of Qualcomm have outperformed the Zacks Wireless Equipment industry over the past year (+22.9% vs. -0.2%). Qualcomm reported solid first-quarter fiscal 2022 results with record non-GAAP earnings and revenues, driven by the ramp-up in 5G-enabled chips and a surge in demand for essential products and services that are the building blocks for digital transformation in the cloud economy. Both the bottom line and the top line increased year over year and surpassed the respective Zacks Consensus Estimate backed by the strength of the business model and revenue diversification.

The Zacks analyst believes that Qualcomm is witnessing healthy traction in EDGE networking that helps to transform connectivity in cars, business enterprises, homes, smart factories, next-generation PCs, wearables and tablets as it continues to diversify. However, high research and development costs are likely to dent margins, while global chip shortage due to supply-chain disruptions is a major headwind.

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

ConocoPhillips shares have gained +61.9% over the past year against the Zacks Oil and Gas - Integrated - U.S. industry’s gain of +70.9%. The Zacks analyst believes that significant opportunities are there for the firm in Eagle Ford, where it owns about 1,600 undrilled locations that could provide access to huge reserves.

With the acquisition of Shell Enterprises’ Delaware basin position, ConocoPhillips has strengthened its position in the Permian. With the $9.5 billion in a cash transaction, COP has acquired roughly 225,000 net acres and producing properties in Texas.

In 2022, the company expects its production at roughly 1.8 MMBoE/D, suggesting an improvement from 1.5 MMBoE/D last year. Also, ConocoPhillips revised higher its expected 2022 return of capital to shareholders. The new guidance is at $8 billion.

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

Other noteworthy reports we are featuring today include Target Corp. (TGT), Merck & Co., Inc. (MRK) and Caterpillar Inc. (CAT).

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

Cost Saving Efforts Aid Bank of America (BAC), Low Rates Ail

Qualcomm (QCOM) Rides on 5G Chips, Firmer Automotive Footing

ConocoPhillips (COP) Banks on Oil-Rich Eagle Ford & Permian

Featured Reports

Key Drugs & Animal Health Unit Drive Merck's (MRK) Sales
Merck's (MRK) drugs like Keytruda, Lynparza and Bridion have been driving sales. The Zacks analyst believes that Animal health and vaccine products remain core growth drivers.

Cost Management & High Margin Assets Aid Devon Energy (DVN)
Per the Zacks analyst Devon's strong production from its high margins assets and efficient cost management will drive performance over the long run.

Strong Demand to Aid Caterpillar (CAT) Amid Cost Pressures
Per the Zacks analyst, strong demand in its end markets will drive Caterpillar's top-line performance and help negate the impact of inflated input costs and supply chain issues on its margins.

Community Health (CYH) Strategic Buyouts, Cost Cutting Aid
Per the Zacks analyst, several buyouts are helping Community Health to boost its portfolio, while cost-curbing efforts are aiding the bottom line. Yet, its massive debt burden is worrisome.

Walgreens' (WBA) Grows Globally, Drug Price Inflation Hurts
The Zacks analyst is optimistic about robust growth in Walgreens' International arm aided by the company's joint venture in Germany. Yet, generic drug cost inflation continues to hamper margin.

Edwards (EW) Rides on Solid TAVR Arm Growth Amid Forex Woes
The Zacks analyst is impressed with Edwards's TAVR segment growth in the fourth-quarter 2021 led by increased adoption of the SAPIEN 3 Ultra platform. Foreign exchange woes remain a concern.

Fluor (FLR) Banks on "Building a Better Future" Initiative
Per the Zacks analyst, Fluor's strategic plan focuses on enhancing the markets outside the traditional oil & gas sector, balanced commercial deals, financial discipline & the high-performing business.

New Upgrades

Target's (TGT) Omnichannel Efforts, Digitization to Aid Sales
Per the Zacks analyst, Target's focus on enhancing omni-channel capacities, coming up with new brands, remodeling stores and expanding same-day delivery options have been fueling sales.

Petrobras (PBR) Aided by Brazil's Pre-Salt Oil Reserves
The Zacks analyst believes that Petrobras' stake in Brazil's huge pre-salt oil reserves puts it in an enviable position to maintain an impressive production growth profile for years to come.

Strong End Market Demand & Cost Cuts to Aid Greif (GEF)
Per the Zacks analyst, Greif will gain from solid end market demand, Caraustar buyout as well as focus on restructuring activities and cost control initiatives.

New Downgrades

Elevated Expenses Likely to Mar Atlassian's (TEAM) Margins
Per the Zacks analyst, increased investment toward enhancing sales & marketing capabilities and higher spending on research & development are likely to dampen Atlassian's margins in the near-term.

TransUnion (TRU) Grapples With High Debt and Seasonality
The Zacks analyst believes that high debt may limit TransUnion's future expansion and worsen its risk profile. Seasonality causes fluctuations in revenues and profits, and makes forecasting difficult.

Alaska Air (ALK) Hit By Fuel Cost Woes & Reduced Capacity
The Zacks analyst is concerned about escalating fuel prices, which pose a threat to the company's bottom line. Additionally, reduced capacity is pushing up the carrier's unit costs.

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Bank of America Corporation (BAC) : Free Stock Analysis Report
 
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
 
Caterpillar Inc. (CAT) : Free Stock Analysis Report
 
ConocoPhillips (COP) : Free Stock Analysis Report
 
Merck & Co., Inc. (MRK) : Free Stock Analysis Report
 
Target Corporation (TGT) : Free Stock Analysis Report
 
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