Top Stock Reports for Alphabet, JPMorgan & Coca-Cola

Friday, September 16, 2022

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 Inc. (GOOGL), JPMorgan Chase & Co. (JPM) and The Coca-Cola Company (KO). 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 shares have gained +38.4% over the past two years against the Zacks Internet - Services industry’s gain of +24.7%. The company’s expanding data centers will continue to bolster its presence in the cloud space. For 2022, we expect Google Cloud revenue to grow 8.4% from 2021. Further, major updates in its search segment are enhancing the search results.

Moreover, Google’s mobile search is gaining solid momentum. For 2022, we anticipate Google Search revenue to be up 11% from the last year. Also, strong focus on innovation of AI techniques and the home automation space should continue aiding Alphabet’s business growth in the days ahead.

Its deepening focus on the wearables category remains a tailwind. Also, Alphabet’s expanding presence in the autonomous driving space is contributing well. Considering the aforesaid factors, we expect 2022 total revenue to grow 10.3% from 2021.

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

JPMorgan Chase shares have declined -23.7% over the past year against the Zacks Banks - Major Regional industry’s decline of -14.0%. The volatile nature of the capital markets business and higher mortgage rates are likely to make fee income growth challenging. Our estimates for non-interest income (managed) indicate a decline almost 15%.

Moreover, steadily rising operating expenses remains a key near-term headwind. Notably, given the possibility of an economic downturn and to meet higher capital requirements, the bank has suspended buybacks.

Nevertheless, higher interest rates and growth in loan demand are expected to result in a robust improvement in net interest income (NII). The Zacks estimate for NII (managed) suggest a CAGR of around 19% over the next three years Opening new branches, strategic buyouts/investments and global expansion and digitization initiatives are likely to keep driving the company’s financials.

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

Coca-Cola shares have outperformed the Zacks Beverages - Soft drinks industry over the past year (+13.0% vs. +6.1%). The company’s top and bottom lines surpassed estimates for the sixth straight quarter. The company’s results reflect elasticity in the marketplace despite the ongoing global challenges. Sales gained from revenue growth across its operating segments, aided by an improved price/mix and an increase in concentrate sales.

Coca-Cola benefited from underlying share gains in both at-home and away-from-home channels. It raised the organic revenues and comparable earnings per share growth guidance for 2022. It is poised to gain from innovations and accelerating digital investments.

However, pressures from higher supply chain costs, including transportation and input costs remain. Higher marketing spends and currency headwinds are also concerning.

(You can read the full research report on Coca-Cola here >>>)

Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), Salesforce, Inc. (CRM), and Linde plc (LIN).

Sheraz Mian
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) Benefits From Cloud & Search Initiatives

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

Coca-Cola's (KO) Digital Investments to Aid the Top Line

Featured Reports

Robust Diagnostics Sales Aids Abbott (ABT) Amid Forex Woes
The Zacks analyst is encouraged by Abbott's growing Diagnostics revenue performance worldwide. However, unfavorable foreign exchange movements continue to hamper sales results.

Digital Transformation and Acquisitions Aid Salesforce (CRM)
Per the Zacks analyst, Salesforce is benefiting from ongoing digital transformations and adoption of its cloud services. Moreover, strategic acquisitions like Slack and Tableau are positive.

Linde (LIN) Benefits From Advanced Gas Processing Solutions
The Zacks Analyst believes Linde's state-of-the-art solutions related to gas processing is likely to support customer expansion and help reduce emissions. Yet, higher costs of sales are concerning.

Altria (MO) Hurt by Escalated Costs, Solid Pricing a Respite
Per the Zacks analyst, Altria is battling commodity cost inflation, as witnessed in the second quarter. However, solid pricing power has been supporting Altria's adjusted operating companies income.

Acquisitions & Cost-Cutting Initiatives Aid MetLife (MET)
Per the Zacks analyst, several acquisitions and partnerships have bolstered the capabilities and global presence of MetLife. Efforts to control costs have been driving its margins.

Debt Management & Regulated investment Aid Exelon (EXC)
Per the Zacks analyst Exelon's debt management initiatives will reduce its capital servicing costs and its planned $29B investments through 2025 will strengthen its operation.

ZTO Express (ZTO) Benefits From Parcel Volumes, Expenses Ail
The Zacks Analyst believes that increase in parcel volumes aids ZTO Express' express delivery services unit. However rise in selling, general and administrative expenses continue to bother bottom line

New Upgrades

Caterpillar (CAT) to Gain on Strong Demand in End Markets
Per the Zacks analyst, solid backlog, improving end-market demand and focus on making strategic investments in expanded offerings, services and digital initiatives will drive Caterpillar's results.

Restructuring Actions and Acquisitions Aid Valmont (VMI)
Per the Zacks analyst, cost-savings from restructuring actions will support the company's margins. It should also gain from its efforts to grow through acquisitions.

Robust Equipment, Services Demand to Aid Patterson (PTEN)
Per the Zacks analyst, solid rig activity along with improved demand for land drilling and pressure pumping services offers enhanced prospects for PTEN going forward.

New Downgrades

Low Production, Inflated Costs Hurt Southern Copper (SCCO)
The Zacks analyst is worried that lower production due to the suspension of operations at Cuajone and reduction in ore grades and high fuel, labor and operating costs will hurt the company's results.

Supply Chain Woes & Stiff Competition to Hurt Seagate (STX)
Per the Zacks analyst, pandemic induced supply chain troubles continue to be a major headwind for Seagate. Increasing competition in the disk drive market is an added concern.

Higher Freight Costs Weigh on Spectrum Brands' (SPB) Margins
Per the Zacks analyst, inflationary pressures owing to higher freight and commodity costs, are hurting Spectrum Brands' margins. Management expects inflation of $290-$310 million for fiscal 2022.

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JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
 
Abbott Laboratories (ABT) : Free Stock Analysis Report
 
Salesforce Inc. (CRM) : Free Stock Analysis Report
 
CocaCola Company The (KO) : Free Stock Analysis Report
 
Linde plc (LIN) : Free Stock Analysis Report
 
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
 
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