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Top Stock Reports for JPMorgan, Thermo Fisher & Broadcom

Mark Vickery

Tuesday, July 2, 2019

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), Thermo Fisher (TMO) and Broadcom (AVGO). 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 gained +6.1% in the past three months, outperforming the Zacks Major Regional Banks industry’s increase of +3.5%. It has an impressive earnings surprise history, having surpassed expectations in three of the trailing four quarters.

The Zacks analyst thinks improving loan balance, strong balance sheet (reflected by capital plan approval), branch openings in new markets and focus on strengthening credit card business will support the bank's financials. Expanding its reach into the lucrative U.S. healthcare payments market with a deal to acquire InstaMed will aid profitability.

However, dismal mortgage banking performance, mainly due to lower origination volumes and increasing competition is expected to continue hampering fee income growth. The company's dependence on capital markets revenues makes us wary and is expected to hurt revenue growth to some extent.

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

Shares of Thermo Fisher have outperformed the Zacks Medical Instruments industry in the past three months (+6.1% vs. +2.3%). The Zacks analyst thinks Thermo Fisher has recently been demonstrating strength in all end markets categorized by customer type or geography.

In the last-reported quarter, the company registered solid international performance with growth in Asia-Pacific including China. A series of product launches aided its performance. The company’s purchase of Brammer Bio in the field of Gene and Cell Therapy is another positive. Thermo Fisher’s Specialty Diagnostics business, even in the face of the recently-completed divestment of its anatomical pathology unit, holds immense potential.

The company's 2019 guidance looks encouraging. On the flip side, Thermo Fisher’s operating segments are being hurt by unfavorable business mix. Competitive headwinds and escalating costs are other threats.

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

Broadcom’s shares have underperformed the Zacks Electronics - Semiconductors industry over the past six months, gaining +24.6% vs. a +33.3% increase. Broadcom is a premier designer, developer and global supplier of a broad range of semiconductor devices. The Zacks analyst thinks the company is benefiting from strong demand for its wireless solutions and expanding product portfolio, which makes it well-positioned to address the needs of rapidly growing technologies like IoT and 5G.

Strong ties with leading OEMs across multiple target markets will help the company to gain key insights into the requirements of customers. Further, Broadcom is a leading player in the semiconductor market based on its multiple target markets, accretive acquisitions and strong cash flow.

However, the company has lowered its fiscal 2019 revenues outlook. Also, the company faces intensifying competition and integration risks due to frequent acquisitions. The company’s leveraged balance sheet and customer concentration continue to be headwinds.

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

Other noteworthy reports we are featuring today include Lowe’s (LOW), Marriott (MAR) and Global Payments (GPN).

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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

Loan Growth, New Branches Aid JPMorgan (JPM), Mortgage a Woe

End-Market Growth, Unit Selloff to Aid Thermo Fisher (TMO)

Broadcom (AVGO) Rides on Portfolio Strength & Acquisitions

Featured Reports

Lowe's (LOW) Dwindling Margins, Soft View Raise Concerns

Per the Zacks analyst, Lowe's soft margins and trimmed fiscal 2019 projections raise concern. Nevertheless, it is undertaking necessary pricing and other actions to battle cost-related headwinds.

Marriott (MAR) Rides on Unit Growth & Merger Amid Competition

The Zacks analyst believes that Marriott's acquisition of Starwood has more than doubled its global presence which should continue to drive revenue growth.

Cheniere (LNG) To Gain From Robust Gas Exports Amid High Debt

While Cheniere Energy's status as the dominant natural gas exporter in the United States positions it for solid top-line growth, the Zacks analyst is worried about elevated leverage of 93%.

Wynn Resorts (WYNN) Rides on Non-Gaming Revenues Amid Debt

The Zacks analyst believes that Wynn Resorts is likely to gain from robust non-gaming business and increasing visitation pattern in Las Vegas. However, high debt remains a concern.

Cash Flow Growth Aids Leidos (LDOS), Stiff Competition Hurts

Per the Zacks analyst, the company's solid cash flows have been boosting overall growth.

Cost Cuts Aid Genesee & Wyoming (GWR), Australian Unit Ails

The Zacks analyst likes the company's efforts to check costs. Efforts to reward shareholders are encouraging too.

Solid Order Trends to Buoy Finisar (FNSR) Despite Trade Woes

Per the Zacks analyst, Finisar continues to expand its product line of optical subsystems to meet customers' evolving needs.

New Upgrades

Inorganic Growth Drives Revenues at Global Payments (GPN)

Per the Zacks analyst, numerous buyouts made by the company have accrued to its business. Success in integrating acquired businesses in existing and new markets positions it well for future growth.

Agnico Eagle (AEM) to Gain from Actions to Boost Production

The Zacks analyst is impressed by Agnico Eagle's efforts to boost its production profile and also believes that it will gain from good progress at its major growth projects.

HubSpot (HUBS) Rides on Portfolio Expansion & Collaborations

Per the Zacks analyst, HubSpot's expanding portfolio of Hubspot One hold promise. Further, growing customer base, cross-selling opportunities and integration with Shopify & Facebook are key positives.

New Downgrades

Schneider (SNDR) Hurt by High Costs & Weak Truckload Unit

The Zacks analyst is worried about the lackluster performance by the company's truckload segment. Moreover, high operating expenses are hurting the bottom line.

FTI Consulting (FCN) Grapples With Rising Cost of Investment

The Zacks analyst believes that escalating cost due to increased investment in people is weighing on FTI Consulting's bottom line.

Cat Loss Exposure, Rising Costs Hurt CNA Financial (CNA)

Per the Zacks analyst, CNA Financial's exposure to cat loss induces volatility in underwriting profits while rising expenses due to high net incurred claims and benefits weigh on margin expansion.

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Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
Marriott International (MAR) : Free Stock Analysis Report
Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Global Payments Inc. (GPN) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
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