Thursday, July 30, 2020
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 Corporation (NYSE:BAC), Intel Corporation (NASDAQ:INTC) and The Goldman Sachs Group, Inc. (NYSE:GS). 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 Bank of America have lost -18.7% over the past one-year period against the Zacks Banks – Major Regional industry’s fall of -24.3%. The Zacks analyst believes that a strong balance sheet and liquidity position are expected to support the company’s financials amid economic slowdown. In fact, its second-quarter 2020 results showed impressive capital markets performance, partially offset by reserve builds and lower rates.
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.
Intel shares have declined -5.2% over the past one-year period, in contrast the Zacks Semiconductor – General industry soared +36.0%. The Zacks analyst believes that declining PC total addressable market, and production delays pertaining to 7 nm ramp up remain concerns. Also, coronavirus crisis-led weakness in retail, vison, automotive and industrial end markets is a headwind.
However, solid uptake of 5G networking solutions, higher Wi-Fi and modem sales and solid notebook demand, improvement in NAND pricing trends that led to higher ASPs, and Optane bit growth, remain tailwinds.
Goldman Sachs shares have gained +12.3% over the past three months against the Zacks Financial – Investment Bank industry’s rise of +14.6%. The Zacks analyst believes that the company’s second-quarter 2020 results reflected higher revenues, solid capital position, along with elevated expenses and provisions. Goldman’s solid position in worldwide announced and completed M&As will keep strengthening the business. Also, business diversification and cost management are tailwinds. Moreover, with strong liquidity, the company carries a low credit risk.
Yet, legal issues remain a headwind. In addition, high dependence on overseas revenues and volatile client-activity might impede Goldman’s top-line growth.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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
Per the Zacks analyst, Intuit is benefiting from frequent product refreshes, which help it to gain customers
The Zacks analyst believes that acquisitions help ADP strengthen its position in the HCM market
While the company faces headwind from soft demand in non-domestic markets, it should gain from expansion of retail operations and productivity improvement actions, per the Zacks analyst.
Per the Zacks analyst, Keurig Dr Pepper (NYSE:KDP)’s coffee business benefits from higher at-home consumption as more people are working from home amid the pandemic.
Per the Zacks analyst, its growing top-line driven by increasing admissions has led to significant growth of the company. However, its high leverage continues to weigh down the margins.
The Zacks analyst believes Kinder Morgan will generate fee-based revenues from the proposed Permian Highway Pipeline (PHP) project.
Per the Zacks analyst, focus on credit card and online banking businesses, decent loan growth and strategic buyouts aid Capital One. However, worsening asset quality and low rates are major concerns.
Per the Zacks analysts, higher demand owing to favorable housing dynamics, backed by lower interest rates, and focus on entry-level buyers are expected to benefit PulteGroup.
Per the Zacks analyst, a number of initiatives such as ATM network participation agreements has led to its overall growth. Solid contributions by Money Transfer and EFT segments also contribute.
Per the Zacks analyst, Boeing’s commercial business has been suffering long, following grounding of 737 jets. The aerospace industry’s slump following COVID-19 outbreak is also hurting the jet maker.
The Zacks analyst is worried about softness in Masimo’s Royalty and Other segment. Fierce competition from MedTech bigwigs is another concern.
The Zacks analyst is concerned about the drop in revenues at the Rail Products Group (down 31.8% in the first half of 2020) due to low railcar deliveries and reduced operational efficiency.
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