Top Stock Reports for JPMorgan Chase, Home Depot & Salesforce
Monday, October 30, 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), The Home Depot, Inc. (HD) and Salesforce, Inc. (CRM). 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 >>>
JPMorgan Chase shares have struggled lately given the uncertain macroeconomic backdrop, but they have outperformed the broader market (+9% for JPM vs. +6.8% for the S&P 500 index) and the Zacks Banks - Major Regional industry over the past year (+9% vs. -16.1%). High interest rates, buyouts, global expansion efforts and decent loan demand will aid net interest income (NII), though rising funding costs will weigh on it.
Despite visibility of some green shoots in the investment banking (IB) business, IB fees are less likely to improve soon. This, along with the volatile nature of the capital markets business and high mortgage rates, will likely hamper fee income growth.
However, mounting costs are a woe and we expect it to rise 10.7% in 2023. Aided by solid earnings strength and balance sheet, it will be able to sustain capital distributions.
(You can read the full research report on JPMorgan Chase here >>>)
Shares of Home Depot have declined -5.6% over the past six months against the Zacks Building Products - Retail industry’s decline of -7.2%. The company has been witnessing significant benefits from the execution of the “One Home Depot” investment plan, which focuses on expanding supply chain facilities, technology investments and enhancement to the digital experience.
The interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic for the past few quarters. The company remains on track with its strategic investments to build a Pro ecosystem.
However, Home Depot's top and bottom-lines declined year over year in second-quarter fiscal 2023. Results were impacted by a deflation in lumber prices and pressures in several big-ticket discretionary categories. HD retained its conservative view for fiscal 2023.
(You can read the full research report on Home Depot here >>>)
Salesforce shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+49.2% vs. +35.1%). 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 >>>)
Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), Advanced Micro Devices, Inc. (AMD) and Intel Corporation (INTC).
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
Buyouts, High Rates, Modest Loan Demand Aid JPMorgan (JPM)
Home Depot's (HD) Interconnected Strategy to Boost Sales
Salesforce (CRM) Rides on Partnership Wins & Acquisitions
Featured Reports
Organic Sales Gain, EPD Business Growth Aid Abbott (ABT)
The Zacks analyst is impressed with Abbott's strong market share gains in organic base business. Within Established Pharmaceuticals, robust performance in key emerging markets is encouraging.
Robust Product Portfolio & Partnerships Aid AMD's Prospects
Per the Zacks analyst, Advanced Micro Devices is benefiting from strong adoption of EPYC and Genoa processors. Moreover, alliances with Meta, Amazon and Oracle, bode well.
Intel (INTC) Focuses on Improved Production Capabilities
Per the Zacks analyst, Intel is likely to benefit from an advanced semiconductor manufacturing ecosystem as it continues to expand its global production capabilities under IDM 2.0 strategy.
Global Brands Strength Drive AB InBev's (BUD) Organic Sales
Per the Zacks analyst, strength in global brands led to AB InBev's organic sales growth in the second quarter, backed by improving key market trends and premiumization in the majority of its markets.
Planned Investments, Permian Basin Focus Aid Occidental (OXY)
Per the Zacks analyst Occidental's investments to strengthen infrastructure and expansion of Permian Basin operation through acquisition will drive its performance over the long run.
Application Software unit Aids Roper (ROP) Amid Rising Costs
Per the Zacks analyst, Roper's Application Software unit is driven by solid momentum across the Deltek, Vertafore, Frontline and Aderant businesses. However, High operating costs remain a concern.
Ayvakit Sales Boosts Blueprint (BPMC), High Dependence a Woe
Per the Zacks Analyst, BPMC has been witnessing increased growth in Ayvakit sales, following label expansion in the U.S. market. However, high dependency on Ayvakit for revenue generation is a woe.
New Upgrades
Better Pricing, New Business Growth Drive Chubb Limited (CB)
Per the Zacks analyst, Chubb is poised to grow on better pricing, new business growth and high renewal rates. It also stays focused on business lines that has immense room for growth.
Flex To Benefit From Solid Demand in Automotive Business
Per the Zacks analyst, Flex's performance benefited from solid demand in automotive sector owing to program wins and steady vehicle content expansion. Rising demand for EV charging is a tailwind.
Higher Rates, Restructuring Supports Hilltop Holdings (HTH)
Per the Zacks analyst, higher interest rates and loan growth will aid Hilltop Holdings' top line. Its restructuring efforts to diversify business as a profitable banking operation are impressive.
New Downgrades
Alaska Air (ALK) Weighed Down by High Fuel & Labor Costs
The Zacks analyst is worried about the fact that increased labor costs and rising fuel prices do not bode well for Alaska Air's bottom line.
Nabors (NBR) Weighed Down by Massive Debt Burden
The Zacks analyst believes that Nabors Industries' high debt-to-capitalization of 82% is a concern, as it restricts the company's financial freedom to tap into growth opportunities.
High Operating Costs Continues to Hurt Boyd Gaming (BYD)
Per the Zacks analysts, higher wages, utilities and property insurance expenses is likely to hurt Boyd Gaming's bottom line. Also, decline in retail play is hurting the company.
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JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Intel Corporation (INTC) : Free Stock Analysis Report
Abbott Laboratories (ABT) : Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
Salesforce Inc. (CRM) : Free Stock Analysis Report
The Home Depot, Inc. (HD) : Free Stock Analysis Report
