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The Zacks Analyst Blog Highlights: Bank of America, Home Depot, Philip Morris, NextEra and Eli Lilly

Zacks Equity Research

For Immediate Release

Chicago, IL –October 4, 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: Bank of America BAC, The Home Depot HD, Philip Morris International PM, NextEra Energy NEE and Eli Lilly LLY.

Here are highlights from Thursday’s Analyst Blog:

Top Research Reports for B of A, Home Depot and Philip Morris

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 Bank of America (BAC), The Home Depot (HD) and Philip Morris International (PM). 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 >>>

Bank of America’s shares have outperformed the Zacks Major Regional Banks industry year to date (13% vs. 12.8%). The Zacks analyst believes that opening of branches in new regions, improved digital offerings, decent loan growth and efforts to control costs will support profitability amid Fed’s accommodative monetary policy stance.

Further, efforts to focus more on consumer banking business have started bearing fruits The company's enhanced capital deployment actions reflect a strong balance sheet position. However, dismal performance of capital markets continues to hurt the company’s investment banking and trading businesses, which, in turn, will hamper fee income growth.

Litigation issues related to its business misconducts in the pre-crisis period are likely to lead to higher legal costs.

(You can read the full research report on Bank of America here >>>)

Shares of Home Depot have gained 12.5% in the past six months, outperforming the Zacks Retail Building Products industry’s rise of 5.8% over the same period. The Zacks analyst believes that this was made possible by a positive earnings surprise trend recorded for more than five years, which continued in second-quarter fiscal 2019.

Earnings benefited from progress on strategic investments as well as a favorable U.S. consumer backdrop and a steady housing market. Meanwhile, the company’s top line lagged estimates but improved year over year on robust comps performance. Its efforts to provide an interconnected shopping experience, with innovative products and improved productivity, position it well for growth.

Despite these gains, lumber price deflation remained a drag on the company’s sales and comps in the fiscal second quarter. Further, it slashed its sales and comps view for fiscal 2019 on lumber price deflation and fears of potential impact of the newly enacted tariffs.

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

Philip Morris’ shares have lost 4.9% in the past three months, compared with the Zacks Tobacco industry’s decline of 8.9%. The Zacks analyst believes that a sturdy bottom-line trend along with efficient pricing and gains from growth of IQOS in the RRPs arena has been boosting the stock.

These upsides had a positive impact on second-quarter results, wherein earnings and revenues beat the Zacks Consensus Estimate. Also, earnings improved year on year. Further, management raised view for 2019.

However, persistent softness in the cigarette unit is weighing on Philip Morris’ top-line performance. Cigarette shipment volumes are expected to continue declining in 2019. The unit is being weighed down by stringent policies and fading consumer interests. Moreover, unfavorable currency movements are a threat.

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

Other noteworthy reports we are featuring today include NextEra Energy and Eli Lilly.

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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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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
 
Bank of America Corporation (BAC) : Free Stock Analysis Report
 
Eli Lilly and Company (LLY) : Free Stock Analysis Report
 
The Home Depot, Inc. (HD) : Free Stock Analysis Report
 
Philip Morris International Inc. (PM) : Free Stock Analysis Report
 
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