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Top Analyst Reports for JPMorgan Chase, AbbVie & Abbott

·6-min read

Thursday, August 18, 2022

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including JPMorgan Chase & Co. (JPM), AbbVie Inc. (ABBV) 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 >>>

JPMorgan Chase shares have declined -18.3% over the past year against the Zacks Banks - Major Regional industry’s decline of -8.8%. The company’s capital markets business and higher mortgage rates are likely to make fee income growth challenging due to the uncertain macroeconomic environment. Moreover, steadily rising operating expenses remain a key near-term headwind. Notably, given the possibility of an economic downturn and to meet higher capital requirements, the bank has suspended buybacks.

However, higher interest rates and growth in loan demand are expected to result in a robust improvement in net interest income (NII). Opening new branches, strategic buyouts/investments and global expansion and digitization initiatives are likely to keep aiding the top line.

(You can read the full research report on JPMorgan Chase here >>>)

AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+24.0% vs. +4.9%), reflecting the company's successful label expansion of its cancer drugs, Imbruvica and Venclexta. It has several new drugs in its portfolio, which have the potential to drive revenues once Humira loses U.S. exclusivity in 2023.  

Skyrizi and Rinvoq are going strong, bolstered by approval in new indications. It has several early/mid-stage candidates that have blockbuster potential. Allergan’s acquisition has diversified AbbVie’s revenue base into new therapeutic areas, enhancing its long-term growth potential.

However, there are concerns about long-term sales growth once Humira generics enter the U.S. market. Increasing competition from newer therapies is hurting Imbruvica’s sales.

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

Abbott shares have declined -11.7% over the past year against the Zacks Medical - Products industry’s decline of -44.5%. The company’s total worldwide Nutrition and Pediatric Nutrition sales continued to be hampered due to the negative repercussions of a voluntary recall of certain powder formulae produced at one of Abbott's U.S. plants. Decline in organic sales in the Neuromodulation and Vascular businesses in the second quarter also raise worries.

Offsetting these negatives, Abbott continues to enjoy robust organic sales growth across core operating segments, barring Nutrition, as reflected in its latest quarterly release. The Diabetes Care business continued to benefit from the growing sales of sensor-based continuous glucose monitoring system, FreeStyle Libre. The Zacks analyst are particularly upbeat about the receipt of FDA clearance for the company’s FreeStyle Libre 3 system in May 2022

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

Other noteworthy reports we are featuring today include Linde plc (LIN), Intuit Inc. (INTU), and Caterpillar Inc. (CAT).

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 to Aid JPMorgan (JPM) Margins, Fee Income A Woe

AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth

High Medical Device Sales Aid Abbott (ABT), Forex Woes Stay

Featured Reports

Linde (LIN) Benefits from Advanced Gas Processing Solutions
The Zacks Analyst believes Linde's state-of-the-art solutions related to gas processing is likely to support customer expansion and help reduce emissions. Yet, higher costs of sales are concerning.

Intuit (INTU) Rides on Product Refresh, Higher Subscriptions
Per the Zacks analyst, Intuit is benefiting from frequent product refreshes, which help it to gain customers. Moreover, increase in subscriptions is driving stable revenue growth for the company.

America Movil (AMX) Benefits from Increasing Subscriber Base
Per the Zacks analyst, America Movil's performance is gaining from increased broadband client base However, stiff competition and the firm's high leverage remain concerns.

Acquisitions & Cost-Cutting Initiatives Aid MetLife (MET)
Per the Zacks analyst, several acquisitions and partnerships bolster the capabilities and global presence of MetLife. Efforts to control costs are driving its margins.

Infrastructure Investment & Clean Assets Aid PPL (PPL)
Per the Zacks analyst, PPL Corporation's investment of $12 billion through 2026, will strengthen its infrastructure and assist it to efficiently serve customers, which will boost its profitability.

Robust Digital Ordering Aid Domino's (DPZ), High Costs Ail
Per the Zacks analyst, a solid digital ordering system and higher global retail sales bode well for Domino's. However, staffing challenges, supply chain problems and inflationary pressures hurts.

Revenue Rise Ups Trane Technologies (TT) Despite Low Liquidity
The Zacks analyst is positive about Trane Technologies' (TT) growth objectives, aiming to increase its revenue streams from parts, services, used equipment and rentals. Low current ratio is a bane.

New Upgrades

Caterpillar (CAT) to Gain on Strong Demand in End Markets
Per the Zacks analyst, solid backlog, improving end-market demand and focus on making strategic investments in expanded offerings, services and digital initiatives will drive Caterpillar's results.

Cenovus (CVE) to Gain From Alberta Tucker Asset Divestment
The Zacks Analyst is upbeat about Cenovus' divestment of the Tucker thermal asset in Alberta, which is likely to help reduce the debt burden and raise shareholder returns.

Strength in the End Market to Drive Applied Industrial (AIT)
Per the Zacks analyst, solid demand across the technology, metals, refining, chemicals and automation end markets are likely to drive Applied Industrial's top-line performance in the quarters ahead.

New Downgrades

Soft Comps Performance to Hurt Children's Place (PLCE) Sales
Per the Zacks analyst, persistent of soft comps performance may hurt Children's Place sales. The company expects a low-double-digit decline in comps in both the third quarter as well as fiscal year.

Weakening Memory Chip Demand to Hurt Micron's (MU) Sales
Per the Zacks Analyst, weakening consumer spending on personal computers and smartphones is expected to negatively impact demand for Micron's memory chips in the near term.

News Corporation's (NWSA) Subscription Unit Remains Soft
Per Zacks analyst, News Corporation is seeing a soft Subscription Video Services segment for a while. Lower revenues from residential broadcast product and currency headwinds hurt the unit's revenues.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Abbott Laboratories (ABT) : Free Stock Analysis Report
Caterpillar Inc. (CAT) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Linde plc (LIN) : Free Stock Analysis Report
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