Top Stock Reports for JPMorgan, Deere & VMware

Friday, December 1, 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 (JPM), Deere (DE) and VMware (VMW). 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 outperformed the Zacks Major Regional Banks industry over the past six months (up +26.5% vs. +18.1%). This price performance is backed by impressive earnings surprise history, with the company having surpassed expectations in all the trailing four quarters.

The Zacks analyst likes the bank’s efforts to control expenses. Combined with the improved rate scenario and rising loan demand, these initiatives should continue to benefit JPMorgan’s financials. Given its solid liquidity position, the company is expected to continue enhancing shareholder value through efficient capital deployment activities.

However, the company faces persistent fee income growth challenges, 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 here >>>).

Shares of Strong Buy-rated Deere shares have surged +47.7% over the last one year, outperforming the Zacks Farm Equipment industry, which has gained +42.7% over the same period. Deere’s top and bottom lines witnessed year-over-year growth in fourth-quarter fiscal 2017, beating expectations on both counts.

Deere projects total equipment sales to climb nearly 38% year over year in first-quarter fiscal 2018 and 22% in fiscal 2018 compared with the year-ago periods. The Zacks analyst likes Deere’s disciplined cost management and continued investment in innovative technology and solutions.

Higher housing starts in the United States and an improving oil and gas sector bode well for the company. Recovery in the dairy and livestock sectors will drive growth in the EU28 region. Further, Deere’s acquisition of Blue River Technology and the pending Wirtgen acquisition remain tailwinds.

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

VMware’s shares have gained +52.6% year to date, outperforming the Zacks Software industry which is up +36.1% over the same period. VMware's strong third-quarter fiscal 2018 results can be attributed to robust performance of its product offerings like NSX, vSphere and vSAN.

The Zacks analyst thinks expanding product portfolio, partnerships with the likes of Intel, IBM, Amazon, Samsung, Fujitsu, Pivotal, Alphabet, and Microsoft along with continuing enterprise deal wins will drive results in the rest of fiscal 2018. Moreover, aggressive share repurchase will support bottom-line. However, several of the growth engines that the company is relying on could take longer to yield results.

Heavy spending on R&D may weigh on its margins in the near future. Moreover, intensifying competition from Microsoft and Citrix Systems remains a major headwind in the near term.

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

Other noteworthy reports we are featuring today include Monster Beverage (MNST), Principal Financial (PFG) and Fortive (FTV).

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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

Higher Rates Aid JPMorgan's (JPM) Margins, Fee Income A Woe

Construction Demand, Wirtgen Acquisition to Boost Deere (DE)

VMware (VMW) Drives on Strong Bookings, Competition Hurts

Featured Reports

Organic Growth, Technology Investments Aid Jones Lang (JLL)

Per the Zacks analyst, solid growth in Real Estate Services and LaSalle segment contribute to Jones Lang's organic growth. Also, technology investments will provide a competitive edge to the company.

Arthur J. Gallagher (AJG) Grows on Sturdy Brokerage Segment

Per the Zacks analyst, Arthur J. Gallagher's solid performance in the Brokerage segment positions it for growth given focus on acquisitions in retail employee benefits and wholesale brokerage areas.

Citrix (CTXS) Aided by SaaS Revenue Growth Amid High Costs

The Zacks analyst is impressed by the strong growth in Software-as-a-Service (SaaS) revenues. Efforts to reward shareholders are also impressive. However, high costs are limiting bottom line growth.

Ulta Beauty's (ULTA) Robust Loyalty Program to Boost Growth

Per Zacks analyst, Ulta Beauty's strategies like loyalty program, omni-channel initiatives and extensive merchandise offerings seem to bode well for the stock.

Fortive (FTV) Benefits from eMaint & Global Traffic Buyouts

Per the Zacks analyst, acquisitions of eMaint Enterprises and Global Traffic Technologies has accelerated Fortive's push into the rapidly-growing cloud computing market.

Monster Beverage (MNST) Banks on TCCC Deal, Costs Hurt

The Zacks analyst believes that the Coca-Cola (TCCC) deal provides Monster Beverage with growth opportunities.

Focus on Fee-Based Revenue Sources Aids Principal (PFG)

Per the Zacks analyst, Principal Financial's focus on fee-based revenue sources has been helping it to earn steadily and limits exposure to the interest rate environment.

New Upgrades

PVH's (PVH) Brand Management Initiatives to Drive Growth

Per Zacks analyst, PVH's approach to brand management aids in developing its brands via efficient marketing strategies, financial control and operating leverage. This positions it for long term growth

Keryx's (KERX) Label Expansion for Auryxia to Boost Sales

Per the Zacks analyst, Auryxia's approval for an additional indication should boost the drug's sales going forward given that iron deficiency anemia (IDA) market holds great potential.

CNA Financial (CNA) Set to Grow on Sturdy Underwriting

Per the Zacks analyst, CNA Financial is poised for growth banking on solid underwriting, demonstrated by improving combined ratio. Improving rate environment and solid capital position raise optimism.

New Downgrades

Lower Turkey Prices to Drag Hormel's (HRL) Revenues Lower

Per the Zacks analyst, Hormel Foods' Jennie-O Turkey Store segment will suffer from lower turkey prices while ongoing challenges might adversely impact Specialty Foods and Refrigerated Foods segments.

Fitbit (FIT) Grapples with Competition, APAC Market Weak

Per the Zacks analyst, mounting competition from Apple and Xiaomi in the wearables space and lackluster growth in the Asia Pacific (APAC) region will continue to dampen Fitbit's sales and income.

Applied Materials (AMAT) Affected by High Fixed Costs

The Zacks analyst thinks despite growth in semiconductor business, Applied Materials' revenue and margins remain under pressure due to a high fixed cost structure.

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Vmware, Inc. (VMW) : Free Stock Analysis Report
 
Principal Financial Group Inc (PFG) : Free Stock Analysis Report
 
Monster Beverage Corporation (MNST) : Free Stock Analysis Report
 
J P Morgan Chase & Co (JPM) : Free Stock Analysis Report
 
Fortive Corporation (FTV) : Free Stock Analysis Report
 
Deere & Company (DE) : Free Stock Analysis Report
 
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