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The Zacks Analyst Blog Highlights: Microsoft, Wells Fargo, Chevron, American Express and QUALCOMM

Zacks Equity Research

For Immediate Release

Chicago, IL –December 17, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Microsoft MSFT, Wells Fargo WFC, Chevron CVX, American Express AXP and QUALCOMM QCOM.

Here are highlights from Monday’s Analyst Blog:

Top Research Reports for Microsoft, Wells Fargo and Chevron

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 Microsoft, Wells Fargo and Chevron. 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 >>>

Microsoft’s shares have outperformed the S&P 500 year to date (52.1% vs. 25.2%). The Zacks analyst believes that Microsoft is benefiting from growing user base of its different applications like Office 365 commercial, Dynamics, Outlook mobile and Teams.

Moreover, Azure’s expanding customer base is a key catalyst. Microsoft’s gaming segment is performing well, primarily driven by a combination of Xbox Live, Game Pass subscriptions and Mixer, which are driving user engagement. Further, acquisitions like PlayFab and GitHub expand Microsoft’s total addressable market (TAM) and penetration.

Additionally, latest contract wins from the Department of Defense remain notable. However, projections of a moderating growth rate in commercial cloud gross margin, and OEM Pro and Windows commercial businesses is a headwind. Moreover, stiff competition from the likes of Google, Apple and Sony present issues.

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

Shares of Wells Fargo have gained +10.3% in the past three months against the Zacks Major Regional Banks industry’s rise of +13%. The Zacks analyst believes that strategic acquisitions along with rising loans and deposit balances are impressive. Also, recent Fed's move on interest rate is likely to aid net interest margin (NIM).

The company’s earnings surprise history remains impressive, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Though its investment in the businesses to enhance compliance and risk-management capability seems impressive, Wells Fargo has been slapped with several sanctions, which continues on the CFPB's dissatisfaction with the bank’s progress on fixing risk-management issues.

Also, rising costs curb bottom-line expansion. Recently, Wells Fargo appointed Charles W. Scharf as its second CEO post-public and political outrage concerning the sales scam in 2016.

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

Chevron's shares have lost -2.8% over the past six months against the Zacks Integrated Oil industry's decline of -7.6%. The Zacks analyst believes that the company’s existing project pipeline is among the best in the industry, targeting volume growth of around 4-7% in 2019 thanks to planned expansion in the Permian Basin.

hevron’s well economics in the Permian also continues to improve as the company has been able to achieve a 40% reduction in its development and production costs since 2015. However, the continued drop in Chevron's downstream segment earnings (partly attributable to a fall in domestic refined products sales margins) is a concern.

Moreover, the supermajor’s massive $10-$11 billion impairment charge is expected to increase its gearing. Hence, investors are advised to wait for a better entry

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

Other noteworthy reports we are featuring today include American Express and QUALCOMM.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Wells Fargo & Company (WFC) : Free Stock Analysis Report
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
American Express Company (AXP) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
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