Wednesday, May 27, 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 Alphabet (GOOGL), Visa (V) and Bank of America (BAC). 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 >>>
Alphabet’s shares have outperformed the Zacks Internet Services industry over the past year (+24.8% vs. +6.4%). The Zacks analyst believes that the company’s strong focus on innovation of AI techniques and the home automation space should aid business growth in the long term.
Alphabet reported mixed first-quarter earnings. The cloud and YouTube businesses remained strong, while digital advertising growth slowed down in the quarter due to the pandemic.
The company’s strong initiatives toward elimination of bad ads and introducing useful major search updates are tailwinds. Notably, it has agreed to acquire Fitbit for roughly $2.1 billion. This deal will likely help the company to accelerate innovation in the wearables category. However, the company’s growing expenses, litigation issues and competition might hurt profitability.
(You can read the full research report on Alphabet here >>>)
Shares of Visa have gained 4.8% over the past six months against the Zacks Financial Transaction Services industry’s rise of +0.3%. The Zacks analyst believes that the company is likely to see a slowdown in its cross-border business due to coronavirus outbreak.
Numerous acquisitions and alliances plus technology upgrades and effective marketing paved the way for long-term growth and consistently drove revenues. Shift in payments to new methods such as mobile, cards, online and via wearables paves way for long term growth and have led to an increase in payments volume, cross-border volume and processed transactions.
The acquisition of Visa Europe is a growth strategy for the long haul. Its strong capital position is another positive. However, high client incentives and expenses weigh on its operating margins.
(You can read the full research report on Visa here >>>)
Bank of America’s shares have lost -14.8% over the past three months against the Zacks Major Regional Banks industry’s fall of -20.5%. The Zacks analyst believes that opening new branches, improved digital offerings and efforts to manage costs will likely aid profitability.
Additionally, strong balance sheet and liquidity position are expected to continue supporting the company's financials amid economic slowdown. However, near-zero interest rates are expected to hurt the bank’s margins and interest income.
Also, coronavirus-induced concerns will likely continue to hamper business activities and thus, loan growth is expected to be muted. Further, dependence on capital markets performance makes us apprehensive, given its cyclical nature. This is likely to hurt fee income growth to some extent.
(You can read the full research report on Bank of America here >>>)
Other noteworthy reports we are featuring today include Roche (RHHBY), JPMorgan Chase (JPM) and NVIDIA (NVDA).
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Director of Research
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
Alphabet (GOOGL) Rides on Diversification; Legal Troubles Ail
Visa (V) Rides On Solid Balance Sheet, Increasing Revenues
Branch Openings, Loan Growth Aid BofA (BAC) amid Low Rates
New Drugs Propel Roche (RHHBY) Amid Biosimilar Competition
Per the Zacks analyst, Roche maintains momentum propelled by solid sales of new drugs like Ocrevus, Tecentriq and Hemlibra.
Loan Demand, New Branches Aid JPMorgan (JPM) Amid Rate Cuts
Per the Zacks analyst, decent loan demand, opening new branches and focus on credit card business will support JPMorgan.
Strong GPU Adoption in Gaming, Datacenter Aids NVIDIA (NVDA)
Per the Zacks analyst, rapid adoption of NVIDIA's GPUs in the gaming market is driving top-line.
Trulicity, Taltz to Drive Lilly's (LLY) Sales in 2020
The Zacks analyst believes that despite coronavirus pandemic, Lilly's sales in 2020 will be driven by higher demand for drugs like Trulicity and Taltz.
Operating Margin Gains Aid FEMSA's (FMX) Results Amid Pandemic
Per the Zacks analyst, higher operating margin across most of FEMSA's business units aid its earnings results, amid coronavirus pandemic.
Sony (SNE) Gains from Robust I&SS Unit Amid COVID-19 Crisis
Per the Zacks analyst, Sony's Imaging & Sensing Solutions (I&SS) segment is benefiting from an increase in sales of image sensors for mobile products.
Growth Projects, Goldcorp Merger to Aid Newmont (NEM)
Per the Zacks analyst, Newmont is likely to benefit from progress in its key growth projects, including the Tanami expansion.
Growth Projects, Expansion to Aid Agnico Eagle (AEM)
According to the Zacks analyst, the company will gain from progress in its key growth projects and its investment in assets to expand production.
ManpowerGroup (MAN) Rides on Pricing Discipline, Lower Costs
The Zacks analyst is impressed with ManpowerGroup's efforts to mitigate its ongoing revenue softness through strong pricing discipline and cost control initiatives.
Pacira (PCRX) Rides High on Robust Performance by Exparel
Per the Zacks analyst, sale of Pacira's flagship product Exparel has been rising since its launch with strong uptake year-over-year. The drug's label expansion programs also look promising.
Softness in Sanuk Brand to Hurt Deckers (DECK) Top Line
Per the Zacks analyst, persistent of softness in Sanuk Brand is likely to hurt Deckers top line performance.
Procedural Delay Hurt Integra (IART) amid COVID-19 Crisis
The Zacks analyst is worried about the ongoing impact of restrictions on surgical procedures and the Government's shelter-in-place policies that will significantly dampen Integra's overall business.
Coronavirus Outbreak and High Debt Level Hurts Crane (CR)
Per a Zacks analyst, Crane (CR) is exposed to headwinds arising from the coronavirus outbreak and so expects earnings and sales to decline year over year. Also, high debt levels is concerning for it.
Visa Inc. (V) : Free Stock Analysis Report
Roche Holding AG (RHHBY) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
JPMorgan Chase Co. (JPM) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Bank of America Corporation (BAC) : Free Stock Analysis Report
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