Top Stock Reports for JPMorgan Chase, Salesforce & Abbott Laboratories
Thursday, August 10, 2023
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 Chase & Co. (JPM), Salesforce, Inc. (CRM) and Abbott Laboratories (ABT). 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 >>>
Shares of JPMorgan Chase have outperformed the Zacks Banks - Major Regional industry over the past year (+32.0% vs. -1.3%). The company acquired failed First Republic Bank for $10.6 billion, which is expected to be accretive to earnings. The deal adds almost $173 billion in loans and will increase market share among wealthy clients.
Higher rates, global expansion initiatives and a decent loan demand will support net interest income (NII). Moreover, supported by solid earnings strength, the company will be able to sustain enhanced capital deployments.
Yet, the volatile nature of the capital markets business and higher mortgage rates are likely to make fee income growth challenging. The Zacks analyst expects non-interest income (managed) to fall 2.1% in 2023. Mounting expenses pose a major headwind, and we anticipate the same to rise 10.4% in 2023.
(You can read the full research report on JPMorgan Chase here >>>)
Shares of Salesforce have outperformed the Zacks Computer - Software industry over the year-to-date period (+55.2% vs. +35.8%). The company is benefiting from a robust demand environment as customers are undergoing a major digital transformation. Its sustained focus on introducing more aligned products as per customer needs is driving its top-line.
Continued deal wins in the international market is another growth driver. The acquisition of Slack has positioned the company as a leader in enterprise team collaboration solution space and placed at a better competitive position against Microsoft’s Teams product.
However, stiff competition and unfavorable currency fluctuations are concerns. Besides, challenging macroeconomic environment might hurt its growth prospects in the near-term.
(You can read the full research report on Salesforce here >>>)
Shares of Abbott Laboratories have declined -2.0% over the past six months against the Zacks Medical - Products industry’s decline of -2.9%. The company is facing steep year-over-year decline in COVID testing-related sales hurt growth. Further, the decision to exit the pediatric nutrition business in China might impede overall growth in the coming period.
Nevertheless, Abbott is strategically expanding its global presence to address the unmet demand for advanced medical technologies. Within the EPD business, which is solely based in emerging markets. Within Core Diagnostics, Abbott is gaining market share following the end of the public health emergency, particularly in the United States and Europe region.
Within Diabetes Care, Abbott is scaling up the production of Libre and gaining reimbursement approval in several countries. Innovations and market expansion efforts are helping it offset the impact of inflation and supply disruptions.
(You can read the full research report on Abbott Laboratories here >>>)
Other noteworthy reports we are featuring today include Morgan Stanley (MS), HCA Healthcare, Inc. (HCA) and General Motors Company (GM).
Director of Research
Sheraz Mian
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
Acquisitions, High Rates Aid JPMorgan (JPM), Fee Income Hurt
Salesforce (CRM) Rides on Portfolio Strength and Buyouts
Organic Sales Gain, Growing EPD Business Aid Abbott (ABT)
Featured Reports
Buyouts Support Morgan Stanley (MS), Capital Markets A Woe
Per the Zacks analyst, acquisitions with an aim to be less capital-markets dependent, high rates and solid balance sheet aid Morgan Stanley. Yet, capital markets ambiguity and rising costs are woes.
Improving Top Line, Acquisitions Aid HCA Healthcare (HCA)
Per the Zacks analyst, its growing revenues driven by increasing admissions have led to significant growth. Strategic acquisitions have helped it expand and remain a driving factor.
Robust Snacks Business Aids Kellogg (K), High Costs a Woe
Per the Zacks analyst, Kellogg has been benefiting from strength in its world-class snack brands. However, the company has been grappling with rising input cost inflation.
Cloudflare (NET) Rides on Product Strength, Acquisitions
Per the Zacks analyst, Cloudflare is gaining from solid contributions of its growth-oriented products, primarily Cloudflare One platform. Strategic buyouts like Area 1 and Vectrix are a positive.
Investments, Appalachian Assets Aid National Fuel Gas (NFG)
Per the Zacks analyst, National Fuel Gas' systematic investment to further strengthen its midstream operations and strong presence in the Appalachian region will boost its performance.
Oceaneering (OII) to Gain from Offshore Expertise
The Zacks analyst likes Oceaneering International's impressive portfolio of equipment for the deep-water projects and the company's exposure to all the phases of the offshore oilfield lifecycle.
Diversified Business aid Charles River (CRAI) Amid Liquidity Woes
Per the Zacks analyst, Charles River's top line is aided by a diversified business with service offerings across areas of functional expertise and geographical regions. Low liquidity remains a concern
New Upgrades
General Motors (GM) Rides on Strong Liquidity & EV Push
General Motors' solid automotive liquidity of around $39 billion (as of Jun 30, 2023) and ambitious electrification goals have made the Zacks analyst bullish on the stock.
Fluor (FLR) Banks on Energy Solutions Business Prospect
Per the Zacks analyst, strong contributions from the Energy Solutions and Urban Solutions segments benefits Fluor.
Model N (MODN) Rides on Healthy Traction for Cloud Solutions
Per the Zacks analyst, Model N is likely to benefit from solid momentum in the Subscription business induced by rising demand for cloud-based solutions and growth in Professional Services.
New Downgrades
Lower Volumes, Supply Shortages Ail Avery Dennison (AVY)
Per the Zacks analyst, lower volumes due to ongoing apparel inventory reductions is denting Avery Dennison's results. Elevated costs and supply chain challenges are also concerning.
Cautious Spending, Bumpy China Recovery Ail Seagate (STX)
Per the Zacks analyst, Seagate's performance is likely to remain under pressure owing to bumpy economic recovery in China, cautious enterprise spending and continued inventory digestion by clients.
Concentration on Several Basins to Affect Ovintiv (OVV)
The Zacks analyst thinks that Ovintiv might benefit from focusing more on its core business by selling off some of its non-core acreage.
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JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Morgan Stanley (MS) : Free Stock Analysis Report
Abbott Laboratories (ABT) : Free Stock Analysis Report
Salesforce Inc. (CRM) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report
