Top Research Reports For JPMorgan, Altria Group & ConocoPhillips
Zacks Investment Research | Nov 19, 2019 02:52AM ET
Tuesday, November 19, 2019
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. (NYSE:JPM), Altria Group, Inc. (NYSE:MO) and ConocoPhillips Co. (NYSE:COP). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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JPMorgan’s shares have outperformed the Zacks Banks - Major Regional industry year to date (+33.8% vs. 29.3%). The Zacks analyst believes that the company recorded impressive bond trading and underwriting business performance in third-quarter 2019. Also, decent loan growth, acquisition of InstaMed, opening of new branches and focus on strengthening credit card business will aid financials amid the Fed’s accommodative policy.
But, the company’s significant dependence on capital markets revenues makes us apprehensive, given the several geopolitical concerns. Also, the bank is likely to face challenges in expanding mortgage operations. Thus, these matters are expected to hamper fee revenue growth.
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Shares of Altria Group have lost 7.6% in the past six months against the Zacks Tobacco industry’s decline of 3.2%. The Zacks analyst believes that the company’s shares have declined primarily due to headwinds surrounding the cigarette unit.
Management expects volumes at the domestic cigarette industry to decline 5-6% in 2019. In this context, tight regulations surrounding sales and marketing of cigarettes along with consumers’ rising health awareness are deterrents.
Nonetheless, prudent pricing strategies have been aiding Altria to boost revenues in its smokeable and smokeless units as witnessed during the third quarter of 2019. During the quarter, earnings and revenues improved year on year.
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Shares of ConocoPhillips have lost 9.2% in the past six months against S&P 500’s rise of 9.6%. The Zacks analyst believes that ConocoPhillips’ expectations for higher production costs and operating expenses are concerning.
For third-quarter 2019, ConocoPhillips projects production in the range of 1,290-1,330 MBoe/D, suggesting a sequential reduction in volumes from 1,332 MBoe/d. The company expects this underperformance owing to planned turnarounds in Alaska, Asia Pacific and Europe. Moreover, the firm projects total production and operating expenses of $5.4 billion, higher than $5.2 billion for 2018.
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On the positive side, the balance sheet of ConocoPhillips is significantly less leveraged than the industry it belongs to, reflecting strong financials.
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Other noteworthy reports we are featuring today include United Airlines Holdings, Inc. (UAL), The Travelers Companies, Inc. (NYSE:TRV) and Twitter, Inc. (TWTR).
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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, strong air travel demand is driving the airline's passenger revenues.
While the company faces headwind from demand weakness across electronics and automotive markets, its cost-reduction actions should lend support to its margins, per the Zacks analyst.
Per the Zacks analyst, Motorola is poised to benefit from holistic growth and disciplined capital allocation and has increased its guidance on the back of healthy demand and record order backlog.
Per the Zacks analyst, consistent progress and strong market of the auto and homeowners business have driven revenues.
Per the Zacks analyst, Boyd Gaming continues to expand portfolio by strengthening current operations and through capital investment.
Twitter continues to add new features and ramp up its security efforts to lower abuse, which per the Zacks analyst is boosting engagement levels, thereby aiding ad revenue growth.
Per the Zacks analyst, Amdocs is gaining from rising adoption of its solutions like DigitalONE.
Per the Zacks analyst, strong air travel demand is driving the airline's passenger revenues.
While the company faces headwind from demand weakness across electronics and automotive markets, its cost-reduction actions should lend support to its margins, per the Zacks analyst.
Per the Zacks analyst, Motorola is poised to benefit from holistic growth and disciplined capital allocation and has increased its guidance on the back of healthy demand and record order backlog.
Per the Zacks analyst, consistent progress and strong market of the auto and homeowners business have driven revenues.
Per the Zacks analyst, Boyd Gaming continues to expand portfolio by strengthening current operations and through capital investment.
Twitter continues to add new features and ramp up its security efforts to lower abuse, which per the Zacks analyst is boosting engagement levels, thereby aiding ad revenue growth.
Per the Zacks analyst, Amdocs is gaining from rising adoption of its solutions like DigitalONE.
New Upgrades/h6
Per the Zacks analyst, Spectrum's pipeline progress bode well for its prospects. Moreover, target markets represent immense commercial potential.n
The Zacks analyst is bullish about the comparable store sales growth within Legacy segment of National Vision. Progress with its omni-channel efforts is another plus.
Per the Zacks analyst, persistent innovation in flash-based solutions and strong adoption of hyper-converged infrastructure (HCI) are expected to benefit NetApp's financial performance.
Per the Zacks analyst, Spectrum's pipeline progress bode well for its prospects. Moreover, target markets represent immense commercial potential.n
The Zacks analyst is bullish about the comparable store sales growth within Legacy segment of National Vision. Progress with its omni-channel efforts is another plus.
Per the Zacks analyst, persistent innovation in flash-based solutions and strong adoption of hyper-converged infrastructure (HCI) are expected to benefit NetApp's financial performance.
New Downgrades/h6
Per the Zacks analyst, rising net outflows hurt Lazard's assets under management growth. Also, high dependence on financial advisory revenues is a concern, due to growing uncertainty in global markets
Per the Zacks analyst SABESP's prospects will be hurt by drop in water usage post drought conditions and cancellation due to lack of deal with some municipalities, which the company serves.
Per the Zacks Analyst, Citizens Financial's "Tapping Our Potential" (TOP) initiatives are likely to boost earnings performance in 2019. However, rising costs due to pending legal cases is a headwind.
Per the Zacks analyst, rising net outflows hurt Lazard's assets under management growth. Also, high dependence on financial advisory revenues is a concern, due to growing uncertainty in global markets
Per the Zacks analyst SABESP's prospects will be hurt by drop in water usage post drought conditions and cancellation due to lack of deal with some municipalities, which the company serves.
Per the Zacks Analyst, Citizens Financial's "Tapping Our Potential" (TOP) initiatives are likely to boost earnings performance in 2019. However, rising costs due to pending legal cases is a headwind.
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