Top Research Reports for JPMorgan Chase, Gilead & ConocoPhillips

Monday, October 30, 2017

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 Chase (JPM), Gilead (GILD) 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 >>>

JPMorgan Chase shares have outperformed the Zacks Major Regional Banks industry over the past six months, (+16.9% vs. +11.7%). This price performance is backed by impressive earnings surprise history, with the company having surpassed expectations in all the trailing four quarters. The bank’s third quarter 2017 results benefited from rise in interest rates, loan growth and lower operating expenses while trading slump, weak investment banking and fall in mortgage banking income were the headwinds.

The Zacks analyst thinks that its efforts to control expenses, the improved rate scenario and rising loan demand should continue to benefit its financials. However, the company faces a persistent fee income growth challenge, mainly due to slowdown in trading activities and dismal capital markets performance. Also, legal expenses are expected to continue lingering in the near-term.

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

Shares of Gilead have outperformed the Zacks Biotech industry so far in 2017, increasing +7.6% vs. a gain of +3.9%. Although Gilead topped both earnings and revenue estimates in the third quarter, it witnessed a decline in HCV sales. The HCV franchise is under tremendous pressure due to lower patient starts and increasing competition. Sales are expected to decline further.

Meanwhile, the HIV franchise maintains momentum driven by the rapid adoption of TAF-based regimens in the United States and EU. The TAF-based regimens now represent 56% of total Gilead HIV prescription volume following the launch of Genvoya and the launches of Odefsey and Descovy in 2016.

The Zacks analyst thinks strong uptake for Truvada for use in the pre-exposure prophylaxis will further boost sales as the company saw a significant uptick in PrEP usage in 2017. The acquisition of Kite and approval of Yescarta also bodes well for Gilead given the potential in the CAR T therapy. However, Gilead has lost exclusivity for Viread and Truvada.

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

Buy-rated ConocoPhillips’ shares are up +2.1% year to date, outperforming the Zacks U.S. Integrated Oil industry, which has lost -10.4% over the same period. ConocoPhillips is one of the largest exploration and production players in the world, based on proved reserves and production.

The Zacks analyst likes the company’s initiative to divest non-core assets as the explorer could divert the proceeds toward oil-rich Eagle Ford shale and Permian Basin. Significant undrilled locations in the Eagle Ford shale will boost the company’s production.

Recently, the upstream energy firm posted strong third-quarter 2017 results, primarily supported by higher oil and natural gas price realizations. Also, utilizing an improved completion design, ConocoPhillips has managed to significantly lower well operating costs.

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

Other noteworthy reports we are featuring today include General Electric (GE), PNC Financial (PNC) and Walgreens (WBA).

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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

Higher Interest Rates Aid JPMorgan (JPM), Fee Income a Woe

Gilead's (GILD) Weak HCV Franchise OffSet Strong HIV Sales

ConocoPhillips (COP) Gains from Oil-Rich Eagle Ford Acreage

Featured Reports

Product Recalls Continue to Hurt Boston Scientific (BSX)

Per the Zacks analyst, the recall of Boston Scientific's prime-line product LOTUS valve should continue to hamper sales until mid-2018 when a new version of the product is expected to be launched.

Walgreens (WBA) Up on Rite Aid Store Addition, Cost Cut Plan

The Zacks analyst is bullish on the synergy benefits to be derived from Walgreens' purchase of a number of Rite Aid stores.

General Electric (GE) Plagued by Low Industrial Margin Woes

Per the Zacks analyst, General Electric remains plagued by significant order backlog, lower industrial margins and volatility in oil prices, forcing it to trim its view and defer dividend payment.

Debt-free Position & Revenue Growth Aid T. Rowe Price (TROW)

Per the Zacks analyst, debt free position with substantial liquidity has assisted in strengthening T. Rowe Price's capital leverage.

Robust Show in Europe & Asia-Pacific Regions Aids Ford (F)

Per the Zacks analyst, strong product mix and pricing are aiding Ford's sales performance in Europe. Again, in the Asia-Pacific region, material cost reduction is responsible for the robust show.

CIP Goals Support PNC Financial (PNC), Debt Burden High

Per the Zacks analyst, PNC Financial's efforts to drive operational efficiency through CIP goals remain encouraging. Also, rising rates is a positive.

FMS Orders, Patriot Missile Aid Raytheon (RTN) Amid Rivalry

Per the Zacks analyst, foreign military sales continue to be a vital growth driver for Raytheon, with Patriot missile adding more impetus.

New Upgrades

Solid Uptake of InviSalign Aids Align Technology (ALGN)

The Zacks analyst is bullish on Align Technology's strong InvisAlign growth prospects in North America and internationally, particularly the Asia-Pacific region where China remains a major market.

Digital Realty (DLR) Taps Growth With Buyouts & Expansion

Per the Zacks Analyst, Digital Realty's expansion efforts in Japan, merger with DuPont Fabros, operational excellence and solid balance sheet strength will likely drive its growth amid strong demand.

World Wrestling (WWE) to Gain from Increase in TV Rights Fees

Per the Zacks analyst, World Wrestling Entertainment is likely to benefit from rise in TV rights fees. Also, focus on subscriber growth, original content production and localization bode well.

New Downgrades

Wyndham (WYN) Hurt by New Owner Strategy & Currency Woes

Per the Zacks analyst, though rise in new owners is expected to benefit Wyndham's timeshare business in the long run, it is currently hurting EBITDA. Also, currency headwinds are restricting sales.

Temperature Control Unit Dragging Standard Motor (SMP) Lower

Per the Zacks analyst, a cooler summer season has lowered Temperature Control unit's product demand, hampering Standard Motor's sales. Also, rising costs for shifting plant operations is a concern.

Eastman Chemical (EMN) Hit by Pricing Woes, Kingsport Costs

The Zacks analyst is concerned about hefty costs related to shutdown of Eastman's Kingsport plant, which will dent its Q4 earnings. The company is also weighed down by weak acetate tow pricing.

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Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report
 
PNC Financial Services Group, Inc. (The) (PNC) : Free Stock Analysis Report
 
J P Morgan Chase & Co (JPM) : Free Stock Analysis Report
 
Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report
 
General Electric Company (GE) : Free Stock Analysis Report
 
ConocoPhillips (COP) : Free Stock Analysis Report
 
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