Tuesday, January 7, 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 JPMorgan (JPM), Sanofi (SNY) andGeneral Electric (GE). 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 >>>
JPMorgan’s shares have outperformed the Zacks Major Regional Banks industry over the past year (+37.5% vs. +29.2%). The Zacks analyst believes that decent loan demand, acquisition of InstaMed, opening of new branches and focus on strengthening credit card business will aid financials.
The company has an impressive earnings surprise history. The bank has surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Also, enhanced capital deployment plan reflects strong balance sheet position and will enhance shareholder value. However, the Fed’s accommodative policy will likely hamper top line growth to some extent.
The company’s significant dependence on capital markets revenues makes us apprehensive, given the several geopolitical concerns. Further, the company is likely to face challenges in expanding mortgage operations. Hence, these matters are expected to hamper fee revenue growth.
(You can read the full research report on JPMorgan here >>>)
Shares of Sanofi have gained +13.9% in the past three months against the Zacks Large Cap Pharmaceuticals industry's rise of +13.1%. The Zacks analyst believes that Sanofi’s focus on streamlining operations and pursuing business development deals is encouraging.
The company’s Specialty Care segment is on a strong footing, particularly with regular label expansion of Dupixent. Dupixent is now annualizing at around €2 billion in sales after just around two years in the market and could prove to be key long-term driver. The performance of the Vaccines and Consumer Healthcare franchises also improved of late.
Sanofi’s R&D pipeline is strong and has delivered important results with several positive data read-outs and the achievement of regulatory milestones in 2019. However, headwinds include weak performance of the Diabetes unit, generic competition for many drugs and slower-than-expected uptake of core products like Praluent.
(You can read the full research report on Sanofi here >>>)
General Electric's shares have gained +19.0% over the past six months against the Zacks Diversified Operations industry's rise of +9.0%. The Zacks analyst believes that the company is poised to gain from its portfolio restructuring program, debt reduction efforts and international commercial presence.
It expects adjusted earnings per share of 55-65 cents for 2019. Healthy business in Aviation, Healthcare and Renewable Energy segments as well as steps to improve the Power segment and asset dispositions in GE Capital are likely to benefit it. However, internal and external challenges weigh on the Power business.
The company expects Power’s organic revenues to decline in a high-single digit in 2019. Also, weak margin in Renewable Energy, forex woes and tariffs might adversely impact its performance. In the past 60 days, the company’s earnings estimates have been lowered for 2020.
(You can read the full research report on General Electric here >>>)
Other noteworthy reports we are featuring today include S&P Global (SPGI), American Electric Power (AEP) and Shopify (SHOP).
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.6% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
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
Loans, Branch Expansion Aid JPMorgan (JPM), Fee Income a Woe
Sanofi (SNY) Diabetes Sales Weak, Specialty Care Unit Strong
Aviation Segment Aids General Electric (GE), High Costs Ail
S&P Global (SPGI) Benefits From Buyouts Amid Weak Issuance
The Zacks analyst likes S&P Global's acquisition strategy to innovate, increase differentiated content and develop new products.
Growing Merchant Base Benefits Shopify's (SHOP) Prospects
Per the Zacks analyst, Shopify is gaining from growing adoption of applications such as Shopify Shipping.
Permian Focus, Strategic Initiatives to Aid Occidental (OXY)
Per Zacks analyst Occidental's expansion of Permian operation through acquisition of Anadarko and initiatives to lower debts by selling non-core assets will boost its operation over the long run.
Dollar General's (DG) Sturdy Comps Run to Propel Top-Line
Dollar General boasts impressive comparable sales run. Per the Zacks analyst, the company's better price management, merchandise, cost containment and operational initiatives should drive sales.
Pioneer Natural (PXD) to Grow on Strong Permian Presence
Per the Zacks analyst, strong focus on the prolific Permian Basin is likely to boost Pioneer Natural's oil volumes.
Loan Growth Aid First Republic (FRC), Increasing Costs a Woe
Per Zacks Analyst, First Republic benefits from rise in loan balances driven by increased loan origination volumes.
Concho Buoyed by RSP Permian Acquisition Amid Gas Price Woes
While RSP Permian buyout bolstered Concho's (CXO) scale and presence in the region, the Zacks analyst is worried about weak natural gas prices that are likely to dent its earnings in the near future.
Investment Aids American Electric (AEP), Rate Dependency Hurts
Per the Zacks Analyst, it plans to invest $33 billion over 2019-2023 period in regulated operations to boost earnings.
Boyd Gaming (BYD) Rides on Buyouts & Strategic Initiatives
Per the Zacks analyst, strengthening of current operations, increasing capital investment and buyouts of Valley Forge Casino Resort and the Pinnacle Assets are driving top and bottom-line growth.
Luminex (LMNX) Continues to Gain Ground on ARIES Platform
Per the Zacks analyst, Luminex's flagship ARIES system has been making significant progress and continues to boost the company's top line.
Aptiv (APTV) Grapples With Weak Global Vehicle Production
The Zacks analyst believes that weak global demand environment continues to weigh on Aptiv's performance. Automotive vehicle production has been declining over the past few years.
Qorvo's (QRVO) High Reliance on Apple and Huawei is a Threat
Per the Zacks analyst, a significant portion of Qorvo's revenue comes from a handful of customers including Apple and Huawei. Furthermore, the US government's banning of Huawei remains a headwind.
Intense Price Wars Hurt U.S. Cellular's (USM) Profitability
Per the Zacks analyst, cut throat competition and aggressive pricing by major telecom behemoths, backed by high churn rate, weigh on U.S. Cellular's performance.
S&P Global Inc. (SPGI) : Free Stock Analysis Report
Sanofi (SNY) : Free Stock Analysis Report
Shopify Inc. (SHOP) : Free Stock Analysis Report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
General Electric Company (GE) : Free Stock Analysis Report
American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research