Yahoo Finance Top Research Reports for JPMorgan Chase, Chevron & Salesforce
Wednesday, January 11, 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), Chevron Corp. (CVX) 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 >>>
Shares of JPMorgan Chase have outperformed the Zacks Banks - Major Regional industry over the past six months (+22.7% vs. +10.5%). The company’s opening of new branches, strategic acquisitions/investments and global expansion and digitization initiatives will keep driving financials. Higher rates and a steady rise in loan demand will keep bolstering net interest income (NII) growth.
According to Zacks analyst estimates for NII (managed), figures are for a CAGR of 13% over the next three years. However, the volatile nature of the capital markets business and higher mortgage rates are likely to make fee income growth challenging.
Our estimates for managed NII reflect a decline of 11.6% for 2022. Steadily rising operating expenses remain a major headwind, and we expect the same to rise 7% in 2022. Given the possibility of an economic slowdown, the company is expected to keep increasing provisions, with 2022 witnessing a substantial jump.
(You can read the full research report on JPMorgan Chase here >>>)
Shares of Chevron have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+38.3% vs. +31.7%). The company is considered one of the best-placed global integrated oil firms to achieve sustainable production ramp-up.
America’s No. 2 energy firm’s existing project pipeline is among the best in the industry, thanks to its premier position in the lucrative Permian Basin. As a reflection of these positives, we expect CVX’s EPS to jump 132% in 2022.
However, Chevron was not immune to the commodity price crash of 2020, forcing the company to cut spending substantially. Its high oil price sensitivity is a concern too. Moreover, the supermajor’s 10-year reserve replacement ratio of 100% is indicative of its inability to replace the amount of oil and gas produced.
(You can read the full research report on Chevron here >>>)
Salesforce shares have underperformed the Zacks Computer - Software industry over the past year (-38.0% vs. -27.0%). The company is facing stiff competition, which is a concern. Unfavorable currency fluctuations, along with increasing investments in international expansions and data centers, are overhangs on near-term profitability.
Nevertheless, Salesforce is benefiting from a robust demand environment, as customers are undergoing a major digital transformation. The rapid adoption of its cloud-based solutions is driving demand for its products. 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 would position the company to be a leader in enterprise team collaboration solutions and better compete with Microsoft’s Teams product. We expect CRM revenues to grow at a CAGR of 12.5% through fiscal 2023-2025.
(You can read the full research report on Salesforce here >>>)
Other noteworthy reports we are featuring today include SAP SE (SAP), CVS Health Corp. (CVS) and FedEx Corp. (FDX).
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 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, Buyouts Aid JPMorgan (JPM), Fee Income a Woe
Chevron (CVX) to Gain from Massive Permian Acreage
Salesforce (CRM) Rides on Portfolio Strength and Buyouts
Featured Reports
CVS Health (CVS) Digital Offerings Grow Amid Stiff Rivalry
The Zacks analyst is impressed with CVS Health's expansion in digital offering with the addition of 1 million new customers during Q3. Yet, stiff rivalry remains a concern.
FedEx (FDX) Rides on Dividends & Buybacks Amid Volume Woes
The Zacks analyst is impressed with FedEx's efforts to reward its shareholders through dividends and buybacks. However, a decline in shipping demand is leading to volume-related concerns.
HVAC & Controls Buoys Johnson Controls (JCI) Amid Cost Woes
The Zacks analyst is encouraged by strength in the Building Solutions North America segment owing to growth in HVAC & Controls. However, high commodity prices and supply chain issues are concerning.
Industrial Demand Aids Fastenal (FAST), Supply Chain Hurts
Per the Zacks analyst, Fastenal has been benefiting from high demand of industrial capital goods and commodities. However, supply chain disruptions and tight labor are concerns.
QIAGEN (QGEN) Banks on Diagnostics Business Amid Forex Woes
The Zacks analyst is impressed with QIAGEN's growth in Molecular diagnostic solutions during the third quarter led by QuantiFERON franchise.
Inflation Woes to Mar United Naturals (UNFI) Performance
Per the Zacks analyst, United Naturals is reeling under inflation, supply chain issues and changing consumer preferences. It expects inflation to be in the low to mid-single-digits for FY23.
Novavax's (NVAX) Dependence on COVID-19 Vaccine Sales A Woe
While Novavax's COVID-19 vaccine exhibits superior immune protection against the virus, the Zacks analyst believes that the delayed commercial launch has severely impacted the vaccine's sales.
New Upgrades
Solid Momentum in Cloud Business Driving SAP's Performance
Per the Zacks Analyst, SAP's performance is gaining from its strengthening cloud business, mainly Rise with SAP offering as well as S/4HANA solutions. Synergies from recent acquisitions bode well.
World Wrestling (WWE) New Content Creation to Lift Revenues
Per the Zacks analyst World Wrestling's focus on content creation, driving subscriber count, raising content rights fees and monetization of content across digital and DTC platforms bodes well.
MGIC Investment (MTG) is Set to Grow on New Insurance Written
Per the Zacks analyst, MGIC Investment is set to grow on new insurance written aided by the increase in the mortgage origination market and higher refinance activity.
New Downgrades
Stringent Laws, Dependence on Subsidiaries Ail Spire (SR)
Per the Zacks analyst Spire as a holding company depends on subsidiaries' performance to meet its financial obligation and needs to meet to stringent regulations, which tends to increase costs.
High Debt & Weak Macroeconomic Conditions Ail TELUS (TU)
Per the Zacks analyst, increasing macroeconomic uncertainties continues to affect spending decisions of Telus's major clients. High debt load and stiff competition are added concerns.
Soft Demand for Office Space to Hurt Vornado's (VNO) Leasing
Per the Zacks analyst, a choppy office market environment and stiff competition from industry peers are likely to weigh on Vornado's leasing volume in the near term.
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JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
Salesforce Inc. (CRM) : Free Stock Analysis Report
SAP SE (SAP) : Free Stock Analysis Report
CVS Health Corporation (CVS) : Free Stock Analysis Report
FedEx Corporation (FDX) : Free Stock Analysis Report
