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Top Analyst Reports for JPMorgan Chase, McDonald’s & Comcast

Written by Amanda

Tuesday, June 6, 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), McDonald’s Corporation (MCD) and Comcast Corporation (CMCSA). 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 (+6.8% vs. -14.3%) reflecting the company’s industry-leading status and a well-regarded management team. The company acquired failed First Republic Bank for $10.6 billion, which is expected to be accretive to earnings. The deal adds almost $173 billion in loans and will increase market share among wealthy clients.

Higher rates, global expansion initiatives and a steady loan demand will support net interest income (NII). Yet, the volatile nature of the capital markets business and higher mortgage rates are likely to make fee income growth challenging.

Mounting expenses pose a major headwind, and we anticipate the same to rise 6.8% in 2023. Nevertheless, supported by solid earnings strength, the company will be able to sustain enhanced capital deployments.

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

McDonald’s shares have lagged the Zacks Retail – Restaurants industry (+14.1% vs. +20.7%), but have handily outperformed the broader market (+14.1% vs. +3.2% for the S&P 500 index). The company’s upside is fueled by strong comps performance, digital initiatives, marketing campaigns and loyalty programs.

McDonald’s is increasing its focus on menu innovation, as it believes that the strengthening of the core menu, solid marketing and improved pricing are likely to pave the way for additional growth in the upcoming periods.

McDonald is also undertaking efforts to drive growth in international markets. Robust digitalization is likely to help the company support long-term growth. Earnings estimates for 2023 have moved north in the past 30 days, depicting analysts’ optimism over the stock’s growth prospects.

(You can read the full research report on McDonald’s here >>>)

Shares of Comcast have outperformed the Zacks Cable Television industry over the past six months (+16.4% vs. +2.6%). The company is benefiting from a growing wireless subscriber base as witnessed in the first quarter of 2023. Broadband user base increased in the reported quarter. Comcast’s plan to transition to DOCSIS 4.0 is noteworthy.

The technology will help it in expanding much faster and at a lower cost compared to competitors. Recovery in park and movie business bodes well for Comcast’s profitability. Its streaming service Peacock is a key catalyst in driving broadband sales. Strong free cash flow generation ability is noteworthy.

However, Comcast persistently suffers from video-subscriber attrition due to cord cutting. Moreover, broadband prospects are suffering from increased competition from fixed wireless as well as fiber. Additionally, a leveraged balance sheet is a major concern.

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

Other noteworthy reports we are featuring today include T-Mobile US, Inc. (TMUS), Amgen Inc. (AMGN) and Marsh & McLennan Companies, Inc. (MMC).

Director of Research

Sheraz Mian

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, Branch Expansion Efforts Aid JPMorgan (JPM)

McDonald’s (MCD) Rides on Solid Comps & Loyalty Programs

Wireless Subscriber Gain Drives Comcast’s (CMCSA) Prospects

Featured Reports

5G Network Deployment is Likely to Benefit T-Mobile (TMUS)
Per the Zacks analyst, the accelerated pace of 5G rollout, an emphasis on developing new 5G use cases and footprint expansion across various industries are likely to improve T-Mobile’s margins.

Amgen (AMGN) Makes Rapid Progress on Solid Pipeline
The Zacks analysts believes Amgen is rapidly advancing its robust oncology and immunology pipeline. Several data readouts are expected in the second half of 2023

Rising Revenues Aid Marsh & McLennan (MMC) Amid High Expenses
Per the Zacks analyst, the company’s increasing top line, courtesy of diverse product offerings and solid client retention rates has led to significant growth. However higher costs might hamper margin

DIY & Commercial Business Aid AutoZone (AZO), High Debt Ails
Per the Zacks analyst, resilient DIY business and a fast-growing commercial business will support AutoZone’s top-line growth. However, high debt levels compared to limited cash remains a concern.

Investment & Expanding Operation Aid American Water (AWK)
Per the Zacks analyst American Water’s planned investment to strengthen infrastructure and expanding operation through acquisition and organic means are going to drive its performance.

Cardinal Health’s (CAH) Diverse Products Gives Competitive Edge
Per the Zacks analyst Cardinal Health’s diversified portfolio represents long-term opportunities. Its products provide the company with a competitive edge in the niche space with cutthroat competition

Solid Liquidity Boosts Golar LNG (GLNG) Amid High Expenses
The Zacks analyst is impressed with Golar LNG’s increasing current ratio as it implies that the risk of default is less. However, escalating operating expenses are worrisome.

New Upgrades

E-Mobility Prowess to Drive General Motors’ (GM) Prospects
High demand for General Motors’ EVs like GMC Hummer e-pickup and Cadillac LYRIQ e-SUV, as well as the firm’s efforts to bolster its battery supply chain makes the Zacks analyst bullish on the stock.

Eni (E) to Gain From Natural Gas Discovery in Barents Sea
The Zacks analyst believes that Eni’s latest natural gas discovery in the Barents Sea will strengthen its position in the north and can uncover possibilities in the region.

Improved Pricing & Product Innovation Aid Owens Corning (OC)
Per the Zacks analyst, solid contributions from Insulation and Roofing segments courtesy of improved selling prices aid Owens Corning. Also, consistent product innovation bode well.

New Downgrades

Sluggishness in China Commerce Business Ails Alibaba (BABA)
Per the Zacks analyst, Alibaba is suffering from weakening China Commerce business due to sluggish growth in online physical goods GMV at Taobao and Tmall marketplaces, and pandemic-led uncertainties.

Competition, Higher Interest Rates Ail OUTFRONT Media (OUT)
Per the Zacks Analyst, OUTFRONT Media’s near-term outlook seems bleak amidst stiff competition from several advertising channels and a high-interest rate environment.

Macy’s (M) Witnesses Increased SG&A & Other Expenses
Per the Zacks analyst, Macy’s is seeing higher selling, general & administrative costs for a while now. This is driven by higher investments in colleagues like competitive pay, incentives and benefits

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

Comcast Corporation (CMCSA) : Free Stock Analysis Report

Amgen Inc. (AMGN) : Free Stock Analysis Report

McDonald’s Corporation (MCD) : Free Stock Analysis Report

Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report

T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report

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Zacks Investment Research

Source: finance.yahoo.com

About the author

Amanda

Hi there, I am Amanda and I work as an editor at impactinvesting.ai;  if you are interested in my services, please reach me at amanda.impactinvesting.ai