Top Research Reports For Bank Of America, Wells Fargo & Toyota Motor
Zacks Investment Research | Jan 08, 2020 01:48AM ET
Wednesday, January 8, 2020
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 (BAC), Wells Fargo (WFC) and Toyota Motor (TM). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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Bank of America’s shares have outperformed the Zacks Major Regional Banks industry over the past year (+34.4% vs. +27.2%). The Zacks analyst believes that opening branches in new regions, improved digital offerings, decent loan growth and efforts to control costs will aid profitability despite the Fed’s accommodative monetary policy stance.
Further, efforts to focus more on consumer banking business have started bearing fruits. The company's enhanced capital deployment actions reflect a strong balance sheet position. However, dismal performance of capital markets continues to hurt the company’s investment banking and trading businesses, which in turn will hamper fee income growth. Moreover, earnings estimates have been moving lower ahead of its fourth quarter 2019 results.
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Shares of Wells Fargo have gained +9.4% in the past three months against the Zacks Major Regional Banks industry's rise of +17.7%. The Zacks analyst believes that though the company's investment in the businesses to enhance compliance and risk-management capability seems impressive, Wells Fargo has been slapped with several sanctions, which continues on the CFPB's dissatisfaction with the bank’s progress on fixing risk-management issues.
Earnings estimates have been revised upward ahead of the company's fourth quarter results. Also, the company's earnings surprise history remains impressive, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters.
Strategic acquisitions along with rising loans and deposit balances are impressive. Also, rising costs curb bottom-line expansion. Moreover, lower NII remain a concern.
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Toyota Motor's shares have gained +11.5% over the past six months against the Zacks Foreign Automotive industry's rise of +9.4%. The Zacks analyst believes that expanding portfolio of product lines is driving the firm’s sales.
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In order to capitalize on the accelerated global shift to electric cars, the auto giant of Japan is deepening focus on developing electric and autonomous vehicles, which will bolster the company’s product competitiveness. Its healthy balance sheet, improving cash flows and investor-friendly moves are other positives.
However, anticipating a slowdown in India, Indonesia and Thailand, the company narrowed its annual vehicle sales target for fiscal 2020. High research and development expenses on advanced technologies for the development of EVs and driverless cars are also likely to dent near-term margins. As such, investors are recommended to wait for a better entry point.
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Other noteworthy reports we are featuring today include salesforce.com (CRM), Tesla (NASDAQ:TSLA) (TSLA) and PNC Financial Services (PNC).
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Mark Vickery
Senior Editor
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
Today's Must Read/h6
Featured Reports/h6
Per the Zacks analyst, salesforce is gaining from its diverse cloud offerings, which are helping it win customers globally.
Per the Zacks Analyst, rising Model 3 deliveries is aiding the company's prospects amid high leverage along with high R&D costs and capex.
Per the Zacks analyst, execution of strategic initiatives and attractive business profile helps PNC improve its topline.
Per the Zacks analyst, Micron is benefiting from the revival in DRAM demand on the back of a progress in customer inventory adjustments in the cloud, graphics and the PC markets.
Per the Zacks analyst, Uber is benefiting from impressive growth in ridesharing revenues. However, escalating costs, primarily on sales and marketing, are weighing on its bottom line.
Per the analyst, impressive performance of Emerson's Automation Solutions segment supported by strong brownfield projects and maintenance, repair & operations activities should drive its revenues.
The Zacks analyst believes rising international activity and higher offshore spending should aid Halliburton but is concerned about pricing pressure in North American hydraulic fracturing services.
Per the Zacks analyst, salesforce is gaining from its diverse cloud offerings, which are helping it win customers globally.
Per the Zacks Analyst, rising Model 3 deliveries is aiding the company's prospects amid high leverage along with high R&D costs and capex.
Per the Zacks analyst, execution of strategic initiatives and attractive business profile helps PNC improve its topline.
Per the Zacks analyst, Micron is benefiting from the revival in DRAM demand on the back of a progress in customer inventory adjustments in the cloud, graphics and the PC markets.
Per the Zacks analyst, Uber is benefiting from impressive growth in ridesharing revenues. However, escalating costs, primarily on sales and marketing, are weighing on its bottom line.
Per the analyst, impressive performance of Emerson's Automation Solutions segment supported by strong brownfield projects and maintenance, repair & operations activities should drive its revenues.
The Zacks analyst believes rising international activity and higher offshore spending should aid Halliburton but is concerned about pricing pressure in North American hydraulic fracturing services.
New Upgrades/h6
Per the Zacks analyst, lean cost structure along with strong offerings in optics, photonics and laser markets boosts growth prospects of MKS Instruments.
Per the Zacks analyst Epizyme has made significant progress with its lead candidate, tazemetostat. The company's efforts to develop HMT inhibitors for the treatment of cancer also looks encouraging.
Per the Zacks analyst Corcept's Cushing's syndrome drug Korlym has witnessed a strong uptake since its approval. The drug's label expansion studies also hold promise and bode well for long-term growth
Per the Zacks analyst, lean cost structure along with strong offerings in optics, photonics and laser markets boosts growth prospects of MKS Instruments.
Per the Zacks analyst Epizyme has made significant progress with its lead candidate, tazemetostat. The company's efforts to develop HMT inhibitors for the treatment of cancer also looks encouraging.
Per the Zacks analyst Corcept's Cushing's syndrome drug Korlym has witnessed a strong uptake since its approval. The drug's label expansion studies also hold promise and bode well for long-term growth
New Downgrades/h6
Per the Zacks analyst, massive costs associated with network coverage and capacity improvements are limiting Sprint's growth in a price-sensitive market. Financial obligations remain another concern.
Per Zacks analyst NextEra Energy LP dependence on a small group of buyers for major sales and low natural gas prices could adversely impact drilling activities lowering demand for pipelines.
Per the Zacks Analyst, dwindling connectivity solutions in EMEA and Asia-Pacific and higher R&D expenses, coupled with weak cash position continue to take a toll on CommScope's growth trajectory.
Per the Zacks analyst, massive costs associated with network coverage and capacity improvements are limiting Sprint's growth in a price-sensitive market. Financial obligations remain another concern.
Per Zacks analyst NextEra Energy LP dependence on a small group of buyers for major sales and low natural gas prices could adversely impact drilling activities lowering demand for pipelines.
Per the Zacks Analyst, dwindling connectivity solutions in EMEA and Asia-Pacific and higher R&D expenses, coupled with weak cash position continue to take a toll on CommScope's growth trajectory.
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