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The Zacks Analyst Blog Highlights: Bank of America, Abbott Laboratories, Chevron, Danaher and GlaxoSmithKline

Zacks Equity Research
·5-min read

For Immediate Release

Chicago, IL – July 22, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Bank of America BAC, Abbott Laboratories ABT, Chevron CVX, Danaher DHR and GlaxoSmithKline GSK.

Here are highlights from Tuesday’s Analyst Blog:

Top Stock Reports for Bank of America, Abbott Labs and Chevron

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 Bank of America, Abbott Laboratories and Chevron. 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 >>>

Bank of America shares have lagged the broader market over the past year, reflecting cyclical weakness and an unfavorable interest rate backdrop. But the stock has nevertheless done better than the peer group (-19.4% vs. -26%) on the back of an expanding branch network, improved digital offerings and effective cost controls. 

The company has outpaced the Zacks Consensus Estimate in three of the trailing four quarters. Its second-quarter 2020 results show impressive capital markets performance, partially offset by reserve builds and lower rates. A strong balance sheet and liquidity position are expected to continue supporting the company's financials amid economic slowdown.

However, near-zero interest rates are expected to hurt the bank’s margins and interest income. Also, coronavirus-induced concerns will likely continue to hamper business activities. Thus, loan growth is expected to be muted. Further, dependence on capital markets performance makes us apprehensive, given its cyclical nature.

Shares of Abbott have gained +7.5% over the past six months against the Zacks Medical Products industry’s fall of -8.2%. The Zacks analyst believes that the branded generics and international diabetes businesses should drive growth in the coming quarters. New product launches and acquisitions should boost sales further.

Abbott posted better-than-expected numbers for the second quarter. However, the figures declined year over year. Despite $615 million of COVID-19 diagnostic testing-related sales, this year-over-year decline was primarily due to the pandemic-led fall in procedure volumes in many businesses.

However, the company’s Diabetes Care, Nutrition, and EPD arms collectively grew more than 9% in the first half of 2020 leveraging on the pandemic situation. Apart from the launch of COVID-19 tests, the company also obtained FDA for Libre 2 as an iCGM. It also received CE Mark for TriClip.

Chevron’s shares have gained +7.2% over the past three months against the Zacks Integrated Oil industry’s fall of -0.2%. The Zacks analyst believes that the supermajor’s reserve replacement ratio of 44% is indicative of its inability to add proved reserves to its reserve base to the amount of oil and gas produced.

The company's worldwide production averaged a record 3,058 MBOE/d in 2019, reflecting an increase of 4.4% thanks to expansion in the lucrative Permian Basin. Chevron’s proposed Noble Energy takeover deal is anticipated to expand its footprint in the DJ Basin and the Permian Basin along with cash-generating offshore assets in Israel.

However, Chevron is not immune to this historic oil price crash, forcing it to cut capex and suspend buybacks. The company’s high oil price sensitivity is a concern too.

Other noteworthy reports we are featuring today include Danaher and GlaxoSmithKline.

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Zacks Investment Research

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.


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Bank of America Corporation (BAC) : Free Stock Analysis Report
 
Chevron Corporation (CVX) : Free Stock Analysis Report
 
GlaxoSmithKline plc (GSK) : Free Stock Analysis Report
 
Abbott Laboratories (ABT) : Free Stock Analysis Report
 
Danaher Corporation (DHR) : Free Stock Analysis Report
 
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