Friday, July 9, 2021
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 (JPM), Intel (INTC), and McDonald’s (MCD). 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 have modestly underperformed the Zacks Major Regional Banks industry in the year-to-date period (+21% vs. +23%), likely reflective of the company’s relative less interest rate sensitivity. The Zacks analyst believes that strategic inorganic expansion initiatives, strong mortgage banking business as well as branch openings in new regions are likely to keep aiding the financials in the near term. JPMorgan is on track to report strong June-quarter results ahead of the market’s open on Tuesday (7/13).
While robust economic recovery is expected to increase the demand for loans, coronavirus-induced economic downturn will continue to hurt the same. The Federal Reserve’s accommodative policy and near-zero rates are likely to hamper interest income and margins, going forward.
(You can read the full research report on JPMorgan here >>>)
Intel shares have gained +9.6% over the last six months against the Zacks General Semiconductor industry’s gain of +26.1%. The Zacks analyst believes that sluggish data center demand across cloud service providers, enterprise and government end-markets is likely to hurt the data center business.
Declining average selling price (ASPs), weakness in Internet of Things (IoT) end-markets and production delays remain other major headwinds. Nonetheless, Intel is likely to benefit from higher demand for its 10 nanometer (nm) SuperFin process-based 11th Gen core processors, on the back of remote working and online learning wave amid robust growth in PC market.
(You can read the full research report on Intel here >>>)
Shares of McDonald’s have gained +2.3% in the past three months against the Zacks Restaurants industry industry’s gain of +1.9%. The Zacks analyst believes that the company’s increased focus on drive-thru, delivery & take-away bodes well.
Recently, McDonald’s launched its first-ever loyalty program in the United States, and it is expected to drive average checks. During first-quarter 2021, the company recorded nearly $1.5 billion in digital sales, which includes app, kiosks and delivery. However, France and Germany reported dismal comps due to dining rooms closures and curfews.
(You can read the full research report on McDonald’s here >>>)
Other noteworthy reports we are featuring today include Anheuser-Busch InBev (BUD), CME Group (CME) and Gilead Sciences (GILD).
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Sheraz Mian
Director of Research
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
New Branches, Buyouts Support JPMorgan (JPM) Amid Low Rates
Higher PC Shipment Aids Intel (INTC) Amid Production Delays
Loyalty Program to Aid McDonald’s (MCD), Traffic Woes Stay
Featured Reports
Digital Investments Brighten AB InBev’s (BUD) Growth Prospects
Per the Zacks analyst, AB InBev’s investments in B2B platforms, e-commerce, and digital marketing have been aiding growth.
Micron (MU) Benefits from Growing Memory-Chip Demand
Per the Zacks analyst, Micron is growing on solid memory-chip demand from PC manufacturers and data-center operators.
Biktarvy, Veklury Fuels Gilead (GILD) As Core Business Slows
Per the Zacks analyst, Gilead’s HIV franchise faces challenges due to the ongoing pandemic. Nevertheless, Veklury maintains momentum.
Critical Care Business Aids Edwards (EW), Forex Woes Ail
Per Zacks analyst, Edwards’ 2021 sales growth is expected in the high-single-digit range on strength in demand for products used in critical surgeries.
BMS Solutions & Solid Radio Systems Aid Analog Devices (ADI)
Per the Zacks analyst, Analog Devices is riding on the growing momentum of Battery Management System solutions in electric vehicles and solid adoption of advanced radio systems.
Business Restructuring, Solid Balance Sheet Aid MetLife (MET)
Per the Zacks analyst, separation of many low return businesses and acquisition of targeted businesses have enabled the company to focus on core areas.
TELUS (TU) Rides on Customer Additions Amid Competition
Per the Zacks analyst, TELUS is expected to benefit from an accretive customer base in its Technology Solutions and International businesses, supported by network investments and service offerings.
New Upgrades
Mirati’s (MRTX) KRAS Inhibitor Has Significant Potential
The Zacks analyst believes that if Mirati’s KRAS inhibitor candidate, adagrasib, can be successfully developed then it can open a market for significant unmet needs.
Higher Prices, Big River Investment Drive U.S. Steel (X)
Per the Zacks analyst, the Big River investment will strengthen U.S. Steel’s Flat-Rolled segment and significantly contribute to its margins. Higher steel prices should also drive its profitability. n
Antero (AR) Banks on Gas-Rich Marcellus & Utica Shale Plays
The Zacks analyst believes that Antero’s production outlook is bright since the upstream firm has premium core natural gas drilling inventories in the prolific Marcellus & Utica shale plays.
New Downgrades
Intense Competition & Productivity Woes Hurt Generac (GNRC)
Per the Zacks analyst, stiff competition from large diversified industrial companies along with export restrictions amid the pandemic is likely to affect Generac’s manufacturing productivity.
Weak Advertising Revenues Weigh on News Corporation (NWSA)
Per the Zacks analysts, News Corporation grapples with dwindling advertising revenues, primarily due to sluggishness in print advertising. Advertising revenues slumped 35.1% during the third quarter.
Surging Costs & High Leverage to Hurt American Axle (AXL)
Soaring manufacturing and program-launch costs are likely to hurt American Axle’s profitability. Elevated leverage of 89% also restricts the firm’s financial flexibility, per the Zacks analyst.
McDonalds Corporation (MCD): Free Stock Analysis Report
JPMorgan Chase & Co. (JPM): Free Stock Analysis Report
Intel Corporation (INTC): Free Stock Analysis Report
Gilead Sciences, Inc. (GILD): Free Stock Analysis Report
CME Group Inc. (CME): Free Stock Analysis Report
AnheuserBusch InBev SANV (BUD): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
