Yahoo Finance Top Research Reports for JPMorgan Chase, AbbVie & NextEra Energy
Wednesday, April 12, 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), AbbVie Inc. (ABBV) and NextEra Energy, Inc. (NEE). 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 and the broader market over the past year (+0.9% vs. -16.7% for the industry and -8.2% for the S&P 500 index). The stock has lagged the broader market as well as the industry over the past month or so since the banking problems took center stage.
The stock was up in response to the last quarterly release on January 13th when the company handily beat estimates and provided reassuring commentary on broader business trends. Ahead of Q1 earnings release before the market's open this Friday (April 14th), estimates have largely been unchanged. A lot will be riding on management's characterization of business conditions following the Silicon Valley episode.
Higher rates and a steady loan demand are expected to have aided net interest income (NII) growth in the Q1 report. Yet, the volatile nature of the capital markets business and higher mortgage rates are likely to have made fee income growth challenging. We expect non-interest income (managed) to be relatively stable this year.
However, steadily rising costs is a major woe, and we expect the same to rise 5.8% in 2023. Given the possibility of an economic slowdown, provisions are likely to keep rising, with we projecting the same to jump 53.1% in 2023.
(You can read the full research report on JPMorgan here >>>)
AbbVie shares have gained +4.5% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +7.5%. The company has several new drugs in its portfolio that have the potential to drive the top line to make up for lost Humira revenues. Skyrizi and Rinvoq have established outstanding launch trajectories bolstered by the approval in new indications.
It has several early/mid-stage candidates that have blockbuster potential. However, there are concerns about long-term sales growth since Humira generics have entered the U.S. market. Slowing consumer demand due to economic pressure is hurting the aesthetics franchise’s sales.
Nonetheless, though revenues are expected to decline in 2023, AbbVie expects to return to robust sales growth in 2025. Estimates have declined ahead of Q1 earnings. AbbVie has a positive record of earnings surprises in recent quarters.
(You can read the full research report on AbbVie here >>>)
Shares of NextEra Energy have gained +8.4% over the past six months against the Zacks Utility - Electric Power industry’s gain of +13.7%. The company continues to expand its operations through the efficient execution of organic projects and strategic acquisitions. The company currently has many renewable projects in its backlog and their completion will ensure reduced emissions.
The merger of Gulf Power and FPL strengthens NextEra’s position in Florida. FPL’s customer base is expanding as Florida’s economy improves and continues to boost demand for its services. NextEra has ample liquidity to meet its near-term debt obligations and efficient debt management acting as tailwinds. Its shares have lost narrower than industry in the past one year.
However, the nature of its business is subject to complex federal, state and other regulations. Risk in operating nuclear units, unfavorable weather conditions and an increase in supply costs adversely impact earnings.
(You can read the full research report on NextEra Energy here >>>)
Other noteworthy reports we are featuring today include The Boeing Company (BA), BP p.l.c. (BP) and Canadian Natural Resources Limited (CNQ).
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, Buyouts Aid JPMorgan (JPM), Fee Income a Woe
AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth
Steady Investment & Renewable Focus Aid NextEra Energy (NEE)
Featured Reports
Order Growth Boost Boeing (BA), 777X-9 Program Issues Woe
Per the Zacks analyst, order flow for products tend to boost Boeing's revenue growth prospects. Yet, paused production of 777X-9 may result in abnormal production costs which may hurt its performance.
BP Likely to Benefit From Lightsource BP JV Acquisition
The acquisition will enable BP to increase its access to renewable power generation and simplify the decision-making processes. However, rising exploration expenses concern the Zacks analyst.
Diverse Production Mix to Aid Canadian Natural (CNQ)
The Zacks analyst sees Canadian Natural's diverse production mix facilitating long-term value and reducing risk profile but is worried about the company's debt maturities each year out till 2027.
Strong Domestic Demand, Cost Cuts Aid Sherwin-Williams (SHW)
Per the Zacks Analyst, Sherwin-Williams will gain from strong U.S. architectural demand and efforts to cut operating costs. However, higher energy costs are expected to weigh on its margins.
Kroger's (KR) Product Freshness, Digital Efforts to Lift Sales
Per the Zacks analyst, Kroger has been making investments to enhance product freshness and quality as well as expand digital capabilities. Digital sales grew 12% during fourth-quarter fiscal 2022.
Infrastructure Demand Aids Martin Marietta (MLM), Costs High
Per the Zacks analyst, Martin Marietta is poised to gain from global trends in infrastructure modernization, energy transition and national security investments. Higher raw material costs are risks.
Lucrative SCS Market Aids Nevro (NVRO) Amid Stiff Competition
The Zacks analyst is upbeat about Nevro's solid prospects in the global spinal cord stimulation or SCS market despite its operation in a highly competitive medical device industry.
New Upgrades
Buyouts of AVK & VAS Aid Copart's (CPRT) Expansion Efforts
Per the Zacks analyst, buyout of AVK and Vincent Auto Solutions have expanded Copart's portfolio. Strong balance sheet with low leverage and high liquidity provides it with financial flexibility.
Strong Sales, High Client Retention Benefit Insperity (NSP)
Per the Zacks analyst, Insperity's worksite employee growth is being driven by strong sales, higher client retention and a rise in net hiring of worksite employees by the company's client base.
Solid Digital Platform Aids Client Growth at MoneyGram (MGI)
Per the Zacks Analyst, a robust digital platform built on partnerships with financial services providers and significant investments boosts the company's capabilities and customer base.
New Downgrades
Yelp (YELP) Hurt by Rising Competition, Falling Delivery
Per the Zacks analyst, competition from Google and Facebook is a major threat to Yelp. Declining food take-out and delivery order volumes due to reopening of economies is hurting transaction revenues.
Higher Costs, Weak Asset Quality Hurt Truist Financial (TFC)
Per the Zacks analyst, Truist Financial's profits will be hurt because of a rise in costs as the company continues with investments in technology upgrades. Rising provisions is another major concern.
Cogent (CCOI) Plagued by Higher Operating Costs, Margin Woes
Per the Zacks analyst, Cogent is likely to be plagued by margin woes driven by high operating costs to maintain network infrastructure, stiff competitive pressure and high technological obsolescence.
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The Boeing Company (BA) : Free Stock Analysis Report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
BP p.l.c. (BP) : Free Stock Analysis Report
Canadian Natural Resources Limited (CNQ) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
