Top Analyst Reports for Visa, JPMorgan & Verizon

Tuesday, June 28, 2022
 
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 Visa Inc. (V), JPMorgan Chase & Co. (JPM), and Verizon Communications Inc. (VZ). 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 >>>

Visa shares have held up better than Mastercard (MA) and the Zacks Financial Transaction Services industry (V down -8% vs. MA down -10.1% vs. the industry down -11.1%). The company is faced with a number of challenges like exposure to the Russia-Ukraine situation, high operating expenses and moderating cash volume from the Asia Pacific region, but the company continues to benefit from numerous buyouts and alliances.

The company's investments in technology are solidifying its position in the payments market. A shift in payments to the digital mode is a boon. The coronavirus vaccine rollouts and the gradual revival of consumer confidence will keep driving spending, expanding business volumes in turn. Backed by its strong cash position, it remains committed to boost its shareholder value. Its balance sheet strength is commendable. Visa's stock has shed less value than its industry in a year.

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

JPMorgan Chase shares have declined -20.9% over the past year against Zacks Banks - Major Regional industry’s decline of -16.6%. The volatile nature of the trading business is likely to make fee income growth challenging. Further, rising mortgage rates will likely hurt originations and refinancing activities. Steadily rising operating expenses remain a key near-term headwind.

However, higher interest rates and rising loan demand are expected to positively impact on the company’s margins and net interest income. Opening new branches, strategic acquisitions/investments, global expansion and digitization initiatives, and decent investment banking (IB) pipeline are likely to keep aiding the company's top line. Also, its steady capital deployments look sustainable and will enhance shareholder value.

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

Verizon shares have declined -3.9% over the past year against Zacks Wireless National industry’s decline of -4.8%. The company offered a muted outlook for 2022 due to the challenging macroeconomic environment. An intensely competitive market and hefty expenses on promotions and lucrative discounts to attract customers are likely to hurt its profitability. High auctioning expenses for the mid-band spectrum are expected to further compromise margins.

However, Verizon plans to accelerate the availability of its 5G Ultra Wideband network with C-Band deployment, covering 175 million people by the end of 2022. Its growth strategy includes 5G mobility, nationwide broadband and mobile edge compute and business solutions. Verizon is building the entire network infrastructure to provide the most amazing 5G experience to customers. It is offering various mix-and-match pricing in both wireless and home broadband plans that has led to solid customer additions.

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

Other noteworthy reports we are featuring today include Wells Fargo & Company (WFC), Marsh & McLennan Companies, Inc. (MMC), and Seagen Inc. (SGEN).
 
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

Visa (V) Rides on Improving Top Line & Solid Balance Sheet

Higher Rates, Loans Support JPMorgan (JPM), Fee Income a Woe

Verizon (VZ) Rides on Faster 5G Rollout, Core Network Focus

Featured Reports

Cost Control Aids Wells Fargo (WFC) Amid Declining Revenues
Per the Zacks analyst, Wells Fargo's cost-saving measures like branch closures and headcount reduction will help offset falling revenue trends due to business divestures and volatile fee income.

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

Seagen's (SGEN) Cancer Drugs Aids Growth Amid Stiff Rivalry
Per the Zacks analyst, Seagen's lead cancer drug Adcetris along with newly approved Padcev and Tukysa are driving revenue growth. Stiff competition in the target market remains major a concern.

Expanding Customer Base, Steady Investment Aid Atmos (ATO)
Per the Zacks analyst Atmos Energy is gaining from demand from increasing customer base. Long-term investments will fortify infrastructure enabling it to serve more customer and boosts profits.

Transco Pipeline System Aids Williams (WMB) Amid Debt Woes
While Williams' expansion projects for its core Transco system of pipelines should buoy its revenues and cash flows, the Zacks analyst is worried over the high long-term debt load of $21 billion.n

Kroger's (KR) Expansion of Our Brands Portfolio to Fuel Sales
Per the Zacks analyst, Kroger has been expanding its product lines under Our Brands portfolio to offer customers greater value. The company launched 239 new items in the first quarter of fiscal 2022.

High Device Sales Aid ResMed (RMD) Amid Supply Chain Issues
The Zacks analyst is encouraged by ResMed's robust device sales across the United States, Canada and Latin-America region. Yet, persistent supply-chain challenges continue to raise concerns.

New Upgrades

Capacity Expansion, Cost Reduction to Aid Albemarle (ALB)
According to the Zacks analyst, Albemarle should gain from its actions to boost its global lithium derivative capacity. Its cost-saving actions will also support margins.

Paylocity Holding (PCTY) Benefits From Growing Customer Base
Per the Zacks Analyst, Paylocity Holding is benefiting from its differentiated employee strategy, comprehensive product offerings and on-demand pay facility, that are helping it win new customers.

Technology Enhancement & Acquisitions Benefit Beacon (BECN)
Per the Zacks analyst, Beacon benefits from its successful execution of technology initiative to grow e-commerce platform. Also, its focus on business expansion via acquisitions bode well.

New Downgrades

Omnicom (OMC) Hurt By Foreign Currency Exchange Rate Risks
The Zacks Analyst is worried about the unfavorable impact of foreign currency exchange rate fluctuations, which are weighing on Omnicom's top line growth.

Heavy Investments in Technology Hurt Robert Half (RHI)
Per the Zacks analyst, Robert Half is witnessing increase in expenses due to rise in staff compensation costs and heavy investments in technology initiatives.

Pandemic, War and Inflation to Hurt NCR's (NCR) Revenues
Per the Zacks analyst, business disruptions caused by the pandemic and ongoing Russia-Ukraine war, along with inflationary pressures are likely to negatively impact NCR's revenues in the near-term.

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Wells Fargo & Company (WFC) : Free Stock Analysis Report
 
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
 
Visa Inc. (V) : Free Stock Analysis Report
 
Verizon Communications Inc. (VZ) : Free Stock Analysis Report
 
Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report
 
Seagen Inc. (SGEN) : Free Stock Analysis Report
 
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