Top Stock Reports for Facebook, JPMorgan & Royal Dutch Shell

Monday, November 4, 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 Facebook (FB), JPMorgan Chase (JPM) and Royal Dutch Shell (RDS.A). 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 >>>

Facebook’s shares have mmore than doubled returns on the S&P 500 year to date (47.7% vs. 22.2%). The Zacks analyst believes that solid mobile ad revenues, driven by impressive growth in Instagram Stories and Feed, and Facebook News Feed, are expected to boost the top line.

Facebook’s initiatives to improve privacy, transparency and authenticity of ads, and remove fake accounts are likely to boost user trust and engagement. Further, partnerships with ESPN and Fox Sports-related streaming on Facebook Watch are a positive. The acquisition of CTRL-Lab will drive growth in the long haul.

However, the company’s rising regulatory headwinds, including the antitrust investigation and the EU’s investigation of Libra, are concerns. The unfriendly regulatory environment is expected to delay Libra’s launch, which Facebook has targeted for the first half of 2020.

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

Shares of JPMorgan have gained 11.1% in the past six months against the Zacks Major Regional Banks industry’s rise of 7%. 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 amid the Fed’s accommodative policy.

The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Defying market expectations, the company recorded impressive bond trading and underwriting business performance in third-quarter 2019, while lower interest rates and muted loan growth.

The company’s significant dependence on capital markets revenues makes us apprehensive, given several geopolitical concerns. Also, the bank is likely to face challenges in expanding mortgage operations. These are expected to hamper fee revenue growth. 

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

Royal Dutch Shell’s shares have gained 2.8% over the past three months against the Zacks International Integrated Oil industry’s rise of 1.2%. The Zacks analyst believes that Europe's largest oil company’s cash flow continues to increase, allowing it to cut debt while covering share buybacks and cash dividend.

As it is, the Anglo-Dutch company's position as a key supplier of liquefied natural gas should benefit its long-term cash flow growth on the back of attractive growth opportunities. However, there are worries over a drop in its downstream segment earnings while the company’s poor reserve replacement ratio raises concerns about future production.

Royal Dutch Shell's operations in violence-prone regions in Nigeria pose additional risk. Hence, investors are advised to wait for a better entry point.

(You can read the full research report on Royal Dutch Shell here >>>)

Other noteworthy reports we are featuring today include Apple (AAPL), Starbucks (SBUX) and Celgene (CELG).

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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

Expanding User Base, Instagram Strength Aids Facebook (FB)

Branch Expansion, Loans Aid JPMorgan (JPM), Fee Income a Woe

Royal Dutch Shell (RDS.A) to Gain from Growing LNG Demand

Featured Reports

Expanding Portfolio, Services Strength to Aid Apple (AAPL)

Per the Zacks analyst, an expanded portfolio with the launch of new iPhones and Watch series 5 and Apple TV+ bodes well for Apple's prospects. Services momentum is also a key catalyst.

Starbucks' (SBUX) Strong Global Footprint to Drive Growth

Per the Zacks analyst, Starbucks' solid global footprint, successful innovations, best-in-class loyalty program and digital offerings will drive performance.

AMD Banks on Strength in Product Portfolio & Partnerships

Per the Zacks analyst, Advanced Micro Devices is benefiting from robust adoption of latest EYPC, Ryzen and Radeon processors.

Strong Demand for Digital Solutions Aids Cognizant (CTSH)

Per the Zacks analyst, continued strength in digital revenues, driven by strong demand for engineering solutions and services is driving Cognizant's overall growth.

Portfolio Strength, Pandora Buyout Drives Sirius XM (SIRI)

Per the Zacks analyst, SiriusXM is benefiting from an expanding subscriber base driven by strong content portfolio.

Kellogg (K) to Continue Gaining from Solid Organic Sales

Per the Zacks analyst, Kellogg is likely to keep gaining from robust organic sales, which rose 2.4% in the third quarter on broad-based growth.

Celgene (CELG) Revlimid, Otezla Boost Growth Amid Setbacks

Per the Zacks analyst, label expansion of lead drug Revlimid fuel Celgene's growth. Robust performance of psoriasis drug, Otezla also boosts growth. However, pipeline setbacks are a concern.

New Upgrades

UBS Group AG (UBS) Depicts Cost Control and Solid Capital Base

Per the Zacks analyst, UBS Group AG's efforts to drive operational efficiency remain encouraging. It continues to benefit from a strong capital position and cost reduction efforts.

CDW Benefits From Robust Growth in Customer End Markets

Per the Zacks analyst, CDW's broad-based product and solutions portfolio is boosting growth across its customer markets, which include corporate, small business, government, education and healthcare.

Vertex's (VRTX) Triple Combo Cystic Fibrosis Pill Approved

Per the Zacks analyst, the rapid approval of Vertex's triple combo pill, Trikafta, for cystic fibrosis (CF), was a big boost. Reimbursement approval in England for its CF drugs removed a key overhang.

New Downgrades

Sluggish Volumes and Debt Load Hurt Norfolk Southern (NSC)

The Zacks analyst is worried about the disappointing overall volumes at Norfolk Southern due to factors like unfavorable spot truck and commodity pricing. High debt levels are a concern as well.

Lower Volumes and Pricing to Ail Lincoln Electric (LECO)

The Zacks analyst is worried that weaker volumes due to slowdown in global industrial production as well as lower pricing in the Americas Welding segment will weigh on the company's top line.

Adtalem (ATGE) Hurt by Higher Marketing & Recruitment Costs

Per the Zacks analyst, higher investments in marketing and student recruitment has been impacting Adtalem's bottom-line.

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Starbucks Corporation (SBUX) : Free Stock Analysis Report
 
Royal Dutch Shell PLC (RDS.A) : Free Stock Analysis Report
 
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
 
Facebook, Inc. (FB) : Free Stock Analysis Report
 
Celgene Corporation (CELG) : Free Stock Analysis Report
 
Apple Inc. (AAPL) : Free Stock Analysis Report
 
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