Top Stock Reports for Bank of America, AT&T US & Lockheed Martin

Thursday, November 3, 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 Bank of America Corporation (BAC), AT&T Inc. (T) and Lockheed Martin Corporation (LMT). 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 shares have modestly underperformed the Zacks Major Banks industry over the past year (-23.7% vs. -22.7%), with the uncertain macroeconomic environment as the primary cloud on the horizon for the stock as well as the broader group.

Bank of America’s earnings outpaced the Zacks Consensus Estimate in three and lagged in one of the trailing four quarters. Its third-quarter 2022 results were primarily aided by higher rates and loan growth. The opening of new financial centers, enhancement in digital capabilities and cost-saving efforts are expected to keep aiding the company’s financials.

Moreover, supported by continued loan growth, Bank of America's top line is expected to improve further. Given the rise in interest rates, the company is expected to keep witnessing growth in margins in the near term.

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

AT&T shares have underperformed the Zacks Wireless National industry over the past year (-25.7% vs. -14.1%). The Zacks analyst believes that the company is struggling with a steady decline in its legacy telephony Internet and wireline services. High-speed Internet revenues are also contracting due to a decline in the legacy digital subscriber line.

With the divesture of WarnerMedia, AT&T must build upon its core businesses to improve its value proposition as spectrum crisis and cord-cutting remain potent challenges. However, AT&T reported solid third-quarter 2022 results with healthy wireless traction and customer additions.

A customer-centric business model alongside a lower churn rate and higher-tier unlimited plans is providing robust growth in its postpaid wireless business. The company is actively investing in key areas of 5G and fiber to augment its fiber footprint. While optimizing operations, it is aiming to increase efficiencies to lower operating costs.

(You can read the full research report on AT&T here >>>)

Shares of Lockheed Martin have outperformed the Zacks Aerospace - Defense industry over the past year (+43.1% vs. -8.1%). The company remains the largest U.S. defense contractor that has a steady inflow of orders from its leveraged presence in the Army, Air Force, Navy and IT programs.

Steady contract flows and subsequent backlog growth bolster its long-term revenue prospects. The budgetary provisions tend to boost its business. Yet, America and Turkey's tiff as a result of the latter accepting Russian products might hurt its component supply from Turkey.

Lockheed is facing performance issues concerning some of its products, which, in turn, may hurt its results. Also, an uncertainty revolving around the possible sanction by China on Lockheed might impact the latter.

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

Other noteworthy reports we are featuring today include The Progressive Corporation (PGR), Constellation Brands, Inc. (STZ), and Biogen Inc. (BIIB).

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

Higher Rates Aid Bank of America (BAC) Amid Fee Income Woes

AT&T (T) Rides on Wireless Traction, Solid Customer Additions

Order Growth Boosts Lockheed (LMT), Tiff With Turkey Ails

Featured Reports

Progressive (PGR) Gains on Premiums, Cat Loss Woes Linger
Per the Zacks analyst, Progressive is set to grow on solid Agency and Direct business, which will drive improvement in net premiums. However, exposure to catastrophe loss remains a headwind.

Beer Business to Boost Constellation Brands' (STZ) Feat
Per the Zacks analyst, Constellation Brands is gaining from strength in beer business on robust consumer demand and share gains for its iconic brands, particularly Modelo Especial and Corona Extra.

Biogen's (BIIB) Upcoming Product Launches May Revive Growth
The Zacks analyst says that potential new product launches like lecanemab, zuranolone and additional biosimilars can help revive growth at Biogen, which is facing multiple challenges at present.

Baker Hughes (BKR) Gains from Higher Oilfield Service Order
Per the Zacks analyst, Baker Hughes will secure handsome cash flows from higher oilfield services order intake. However, the company's rising costs and expenses remain a concern.

Expanding User Base, Content Portfolio Aids SiriusXM (SIRI)
Per the Zacks analyst, SiriusMX is benefiting from strength in subscriber base backed by a solid content portfolio and expanded podcast efforts.

Albertsons' (ACI) Strong Digital Endeavors to Boost Sales
Per the Zacks analyst, Albertsons Companies has been directing resources toward expanding digital and omni-channel capabilities. The company's second-quarter digital sales rose 36% year on year.

Watsco (WSO) Benefits From E-Commerce Business, Acquisitions
Per the Zacks analyst, strength in the e-commerce business, accretive acquisitions and focuses on enhancing shareholder value via dividend hikes are benefiting Watsco.

New Upgrades

Higher Revenues, Loans & Deposits Support Cullen/Frost (CFR)
Per the Zacks analyst, Cullen/Frost's rising revenues is a positive backed by strong loan growth and rising interest rates. Additional branch openings in strategic regions will enhance market share.

Diversified Portfolio and Strengthening Backlog Aid FLEX
Per the Zacks analyst, Flex's performance benefited from strong revenue growth across all business segments owing to ongoing secular trends. Also, rising customer backlogs are major tailwinds.

Insperity (NSP) Strong on Pro-Investor Steps, Solid Top Line
The Zacks analyst is positive about Insperity's top-line growth, driven by a rise in average number of worksite employees paid per month. Also, investor-aiding steps are a tailwind.

New Downgrades

Supply-Chain Constraints & High Costs Hurt Kennametal (KMT)
The Zacks analyst is concerned about persistent supply chain constraints and high raw material costs, which are affecting Kennametal's margins and profits.

Knight-Swift (KNX) Grapples With Rising Operating Expenses
Per the Zacks Analyst, high costs related to driver wages, equipment, maintenance, fuel and other expenses are increasing Knight-Swift's operating expenses. This is likely to weigh on the bottom line.

Match Group (MTCH) Hurt by Higher Investments & Debt Burden
Per the Zacks analyst, higher investments in Tinder along with higher-than-expected data costs and professional fees might limit margin expansion. Further, highly leveraged balance sheet is a concern.

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Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
 
Bank of America Corporation (BAC) : Free Stock Analysis Report
 
Biogen Inc. (BIIB) : Free Stock Analysis Report
 
AT&T Inc. (T) : Free Stock Analysis Report
 
The Progressive Corporation (PGR) : Free Stock Analysis Report
 
Constellation Brands Inc (STZ) : Free Stock Analysis Report
 
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