Top Stock Reports for Bank of America, Toyota Motor & AT&T

Thursday, August 25, 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), Toyota Motor Corporation (TM) and AT&T Inc. (T). 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 declined -15.3% over the past year against the Zacks Banks - Major Regional industry’s decline of -16.7% and both lagging the broader market's decline of -8.5%. The outlook for Bank of America and its peers has been clouded by the ongoing macroeconomic uncertainty characterized by the Fed tightening cycle that has raised recessionary risks.  

However, the opening of new financial centers, enhancement in digital capabilities and expense-saving efforts are expected to keep aiding the company’s financials.

Moreover, supported by robust loan growth, Bank of America's top line is expected to improve. Given the recent rise in interest rates, Bank of America is expected to witness growth in margins in the near term.

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

Toyota Motor shares have declined -9.6% over the past year against the Zacks Automotive - Foreign industry’s decline of -28.0%. Toyota is faced with a number of near-term challenges like the chip crunch compounded by the Russia-Ukraine war and inflationary pressures weighing on margins, the company is better placed to face these headwinds than its peers. 

Toyota’s massive electrification push including investment in all-electric, hybrids and fuel-cell vehicles is set to bolster prospects. It aims to generate 40% of its global sales from EVs by 2025 and 70% by 2030.

The Japanese auto giant forecasts a year-over-year growth in sales volume and revenues for the current fiscal year. The expanding portfolio of product lines, a robust lineup of trucks and SUVs, partnerships with Hino and Subaru and Mazda will steer long-term growth

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

AT&T shares have declined -7.2% over the past year, roughly in line with the Zacks Wireless National industry’s decline of -7.8%. 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 challenges.

However, AT&T is witnessing solid subscriber momentum. A customer centric business model, is providing the company with healthy growth in its postpaid wireless business alongside a lower churn rate and higher-tier unlimited plans.

The company is actively investing in key areas of 5G and fiber and adjusting its business according to the evolving market scenario to fuel long-term growth. While optimizing operations, it is aiming to increase efficiencies to lower operating costs.

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

Other noteworthy reports we are featuring today include The Home Depot, Inc. (HD), Zoetis Inc. (ZTS), and Occidental Petroleum Corporation (OXY).

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

Toyota's (TM) Electrification Push to Aid Amid Cost Woes

AT&T (T) Rides on Subscriber Growth, Customer-Focus Strategy

Featured Reports

Focus on Pro Customers to Aid Home Depot's (HD) Top Line
Per the Zacks analyst, Home Depot's Pro segment has been a key driver of sales growth for several quarters. It is on track with investments to build a Pro ecosystem. Pro sales outpaced DIY sales in Q2

Dermatology, Parasiticides Fuel Zoetis (ZTS), Poultry Weak
Per the Zacks analyst, Zoetis companion animal business driven by Apoquel and Simparica maintains growth amid challenges for poultry products. The launch of innovative products should fuel growth.

Permian Basin Focus, Low-cost operation Aid Occidental (OXY)
Per the Zacks analyst Occidental's acquisition of Anadarko expanded its operation in resource rich Permian Basin and low cost operation will boost its profits over the long run.

Lam Research (LRCX) Benefits From Foundry & Logic Strength
Per the Zacks analyst, strong adoption of etch and deposition technologies is driving growth in Lam Research's foundry and logic segment.

Moderna's (MRNA) Dependence on COVID-19 Vaccine Sales A Woe
Moderna has boosted its cash resources on the back of robust COVID vaccine sales. However, the Zacks Analyst is concerned as other pipeline candidates are still years away from commercialization.

End-Market Strength & Diversification Aids Amphenol (APH)
Per the Zacks analyst, Amphenol benefits from mobile devices, automotive, IT datacom and industrial end-market demand. Diversified business model also lowers volatility of individual geographies.

Align Technology (ALGN) Grows Internationally Amid Low Sales
The Zacks analyst is encouraged by Align Technology's robust Invisalign case volumes across the EMEA and APAC regions. Yet, persistent macro-economic headwinds continue to hamper top line results.

New Upgrades

RBC Bearings (ROLL) to Gain From Industrial Segment Growth
Per the Zacks analyst, solid momentum in RBC Bearings' Industrial segment, led by strength in the semiconductor, mining, energy and general industrial end markets should drive its top line.

Rising Investment Income, Acquisitions Aid Owl Rock (ORCC)
Per the Zacks analyst, the company's revenues are driven by high investment income, thanks to its improved interest income. Buyouts enhance its capabilities and diversified the business.

Product Innovations to Aid JAKKS Pacific's (JAKK) Top Line
Per the Zacks analyst, JAKKS Pacific's solid international footprint, focus on innovation and collaborations with popular brands and movie franchisees should boost top-line growth.

New Downgrades

Zero Dividend and Soft Liquidity Weaken Envestnet (ENV)
The Zacks analyst is pessimistic about Envestnet's decreasing current ratio (a measure of liquidity). Also, ENV neither declared nor does it currently have any plan to pay out cash dividends.

Soft Automotive Sector & Competition to Hurt Sensata (ST)
Per the Zacks analyst, stiff competition and weak automotive sector performance owing to unfavorable forex movement remain major concerns for Sensata along with a leveraged balance sheet.

Higher Markdowns to Weigh on Macy's (M) Margins
Per the Zacks' analyst, markdowns to optimize inventory levels within overstock categories may hit Macy's margin. Macy's expects fiscal 2022 gross margin to shrivel 150 basis points from last year.

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Bank of America Corporation (BAC) : Free Stock Analysis Report
 
AT&T Inc. (T) : Free Stock Analysis Report
 
Toyota Motor Corporation (TM) : Free Stock Analysis Report
 
Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report
 
The Home Depot, Inc. (HD) : Free Stock Analysis Report
 
Zoetis Inc. (ZTS) : Free Stock Analysis Report
 
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