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Top Stock Reports for JPMorgan Chase, Salesforce & Vertex Pharmaceuticals

Monday, February 26, 2024

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), Salesforce, Inc. (CRM) and Vertex Pharmaceuticals Inc. (VRTX). 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 year (+33.1% vs. +11.9%). High interest rates, buyouts, opening new branches and decent loan demand will aid net interest income (NII), though rising funding costs will weigh on it.

Despite some green shoots in the investment banking (IB) business, IB fees are less likely to improve anytime soon. This, along with the volatile nature of the capital markets business and high mortgage rates, will likely hamper fee income growth.

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

Shares of Salesforce have outperformed the Zacks Computer - Software industry over the past year (+79.5% vs. +59.8%). The company is benefiting from a robust demand environment as customers are undergoing a major digital transformation. Salesforce’s sustained focus on aligning products with customer needs is driving the top line.

Continued deal wins in the international market are another growth driver. The buyout of Slack has positioned the company as a leader in enterprise team collaboration and improved its competitive standing versus Microsoft Teams. Salesforce’s strategy of continuously expanding generative AI offerings will help the company tap the growing opportunities in the space.

However, stiff competition and unfavorable currency fluctuations are concerns. Also, the challenging macroeconomic environment could hurt its growth prospects.

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

Shares of Vertex Pharmaceuticals have outperformed the Zacks Medical - Biomedical and Genetics industry over the past year (+49.7% vs. -6.1%). The company’s cystic franchise sales continue to grow, driven by its triple therapy, Trikafta/Kaftrio. New reimbursement agreements in ex-U.S. markets and label expansions to younger age groups are driving Trikafta/Kaftrio sales higher.

Vertex saw rapid success in its non-CF pipeline candidates’ development in 2023. Its one-shot gene therapy, Casgevy, was approved for two blood disorders in multiple regions, which diversified its commercial opportunity.

Vertex is on track to submit regulatory applications for VX-548 in acute pain and for vanzacaftor triple in CF by mid-2024. Vertex faces minimal competition in its core CF franchise.

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

Other noteworthy reports we are featuring today include Palo Alto Networks, Inc. (PANW), Fiserv, Inc. (FI) and The Williams Companies, Inc. (WMB).

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

Buyouts, Rates & Loans Aid JPMorgan (JPM), Fee Income Ails

Salesforce (CRM) Rides on Portfolio Strength and Buyouts

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Vertex (VRTX) Enjoys a Strong Non-Cystic Fibrosis Pipeline

Featured Reports

Palo Alto (PANW) Rides on Shift to Subscription Services
Per the Zacks analyst, Palo Alto Networks' focus on selling more subscription-based services is helping the company generate stable revenues and higher margins.

Fiserv (FI) Gains From Skytef Buyout, Amid High Competition
Per the Zacks analyst, the Skytef acquisition strengthens Fiserv's distribution network and point-of-sale. High competition from other players is an overhang.

Transco Pipeline System Aids Williams (WMB) Amid Debt Woes
While Williams' expansion projects for its core Transco system of pipelines should buoy its revenues and cash flows, the Zacks analyst is worried over the high long-term debt load of $23.4 billion.

Expansion Efforts to Aid Carvana (CVNA), High Debt Ails
The Zacks analyst is optimistic about Carvana's efforts to increase its penetration in existing markets, enter new markets and gain more customers. However, elevated leverage remains a concern.

Tapestry (TPR) Hurt by Low Kate Spade Sales, High SG&A Costs
Per the Zacks analyst, Tapestry's soft Kate Spade sales are a concern, which is likely to persist in the near term. Apart from this, the company remains troubled by high adjusted SG&A expenses.

Solid Top-Line, Strong Cash Flow Aid American Financial (AFG)
Per the Zacks analyst, strong revenues driven by higher net investment income, net earned premiums have led to significant growth. Moreover, its healthy balance sheet should drive long-term growth.

Crocs' (CROX) Margins Benefit From Lower Freight Expenses
Per the Zacks analyst, lower inbound freight costs have been aiding Crocs' margins for a while now. Also, favorable ocean freight rates and lower promotional activity are acting as tailwinds.

New Upgrades

Favorable Budget, Solid Contract Wins Aid Leidos (LDOS)
Per the Zacks analyst, increasing budgetary revisions by the U.S. administration should boost Leidos' growth. Steady contract wins also bolster this stock's revenue prospects

Build-To-Order Model & Expansion Efforts Aid Toll Brothers (TOL)
Per the Zacks analyst, Toll Brothers is benefiting from its Build-To-Order model and expansion efforts. Also, the emphasis on affordable luxury communities bode well.

Lantheus (LNTH) Rides on its Strength in Radiopharmaceuticals
The Zacks analyst is upbeat about Lantheus' market leadership in radiopharmaceuticals and focus on pipeline development.

New Downgrades

Third-Party Dependency, Seasonality Ail Clearway Energy (CWEN)
Per the Zacks analyst Clearway Energy's dependence on third-party assets can adversely impact its ability to serve customers. Its operating results are negatively impacted due to weather variability.

Keysight (KEYS) Plagued by Soft Demand in Multiple End Markets
Per the Zacks analyst, demand softness in consumer and industrial electronics markets will likely hinder Keysight's top line. Macroeconomic challenges remain a headwind.

CoStar Group (CSGP) Suffers from Higher Borrowing Costs
Per the Zacks analyst, CoStar Group suffers from challenging macroeconomic conditions including higher borrowing costs, tight lending standards, and deteriorating real estate fundamentals.

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

Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report

Salesforce Inc. (CRM) : Free Stock Analysis Report

Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report

Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report

Fiserv, Inc. (FI) : Free Stock Analysis Report

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Zacks Investment Research