Top Research Reports for Bank of America, Wells Fargo & Honeywell

Monday, July 2, 2018

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 (BAC), Wells Fargo (WFC) and Honeywell (HON). 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’s shares have outperformed the Zacks Major Regional Banks industry over the last six months, losing -5.4% vs. -6%. Also, the company possesses an impressive earnings surprise history, beating expectations in each of the trailing four quarters.

The Zacks analyst thinks increase in loan and deposit balances, rising interest rates and efforts to manage expenses as well as expand into new markets will support profitability. Lower tax rates and easing of banking regulations will aid growth.

Further, approval of its capital plan reflects strong balance sheet position. However, fall in mortgage banking income due to lower volumes and a decline in refinancing activity along with uncertainty related to performance of capital markets remain major concerns. These are expected to hurt the bank's revenues to some extent.

(You can read the full research report on Bank of America here >>>).

Shares of Wells Fargo have underperformed the Zacks Major Banks industry over the last six months (-9.9% vs. -5.9%). The company possesses a decent earnings surprise history, having beaten expectations in two of the trailing four quarters.

Recently, the bank received the judge’s final approval for the settlement of $142 million worth class-action lawsuit related to the 3.5 million fake accounts scandal. Also, Wells Fargo was slapped with new sanctions, including a cap on the assets position by the Federal Reserve.

Though lower tax rate, easing of regulations and expansions will likely support the bank’s growth profile, the crisis related to the revelation of illegally opening millions of illegal accounts in 2016 will take some time to alleviate. Moroever, rising rates are expected to aid net interest income. Furthermore, the recent 2018 capital plan approval boosts investors' confidence.

(You can read the full research report on Wells Fargo here >>>).

Buy-ranked Honeywell’s shares have outperformed the Zacks Diversified Operations industry in the last one year, increasing +7.7% vs. a -16.4% decline. The Zacks analyst thinks Honeywell’s diversified business portfolio has the potential to earn consistent above-average returns and mitigate operating risks.

The company’s diligent focus on working capital management, free cash flow generation and a conservative balance sheet are encouraging amid a challenging macroeconomic environment. With a flexible yet disciplined focus on cost and productivity, Honeywell remains focused on increasing its presence in high-growth regions.

Additionally, the company’s balanced mix of long- and short-cycle businesses along with a decent organic growth in new products and expansion in high-growth regions auger well on a long-term perspective.

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

Other noteworthy reports we are featuring today include General Dynamics (GD), Allergan (AGN) and Enterprise Products Partners (EPD).

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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, Loan Growth Aid BofA (BAC), Fee Income a Woe

Interest Income Aids Wells Fargo (WFC), Legal Issues Linger

Honeywell's (HON) Future Bright on Solid Product Portfolio

Featured Reports

Allergan's (AGN) Key Drugs & Cost Cuts to Offset Generic Woes

Though Allergan faces generic competition for key drugs in 2018, the Zacks analyst thinks drugs like Botox/Linzess, new drugs and cost cuts can shield it from potential sales drop.

Enterprise (EPD) to Grow on Robust Natural Gas Demand

The Zacks analyst believes that Enterprise Products' growing midstream operations should help it exploit the robust natural gas demand from petrochemical units in the U.S. and international markets.

Brand Building Boosts Constellation Brands' (STZ) Market Share

Per the Zacks analyst, Constellation Brands' consistent focus on brand building and inclusion of new products are key revenue drivers.

Focus on CCI Program to Bolster McCormick's (MKC) Margins

Per the Zacks analyst, McCormick's Comprehensive Continuous Improvement plan will help it offset freight costs and boost margins.

Dividends & Buybacks Aid Southwest (LUV) Amid Passenger Woes

The Zacks analyst is impressed by the company's efforts to reward shareholders.

Solid Performance at CNA Financial Aids Loews' (L) Growth

Per the Zacks analyst, Loews is well poised to grow banking on sustained solid performance at its CNA Financial driven by favorable rate changes, new business, tax reform and focus on core competency.

Loan Growth Supports SunTrust (STI), Mortgage Income a Woe

The Zacks analyst opines loan growth and cost control strategy aid SunTrust's profitability, while approval of capital plan shows robust liquidity.

New Upgrades

Acquisitions, Roofing Business Drive Owens Corning (OC)

The Zacks analyst stresses that acquisitions are an important part of Owens Corning's growth strategy. Also, the roofing business is an important contributor to revenues.

Solid Global Prospects Boost Inogen's (INGN) Segmental Growth

The Zacks analyst believes Inogen's strong sales in the United States and Europe are positives. Solid growth in business-to-business and direct-to-consumer segments hold promise.

Strategic Initiatives Aid Hartford Financials' (HIG) Growth

Per the Zacks analyst strategic initiative to dispose of the legacy run-off business, vending of non-core business, lowering expenses, sale of Talcott Resolution will drive long term growth

New Downgrades

High Competition, Market Risks Hurt General Dynamics (GD)

Per the Zacks analyst, a competitive market has forced the company to upgrade its technology, leading to additional expenses. Currency fluctuation and geo-political risks may also hurt revenues.

Business Transformation Costs to Weigh on AptarGroup (ATR)

Per the Zacks analyst, AptarGroup's results will be hurt by implementation costs related to business transformation plan in the Beauty + Home segment. Elevated raw material costs also remain a woe.

Supply Delay, Soft U.S. Market to Hurt Zimmer Biomet (ZBH)

Per the Zacks analyst, Zimmer Biomet is grappling with supply delay issues leading to the inability to recapture lost customers and gain new ones. Soft domestic market conditions is another concern.

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Wells Fargo & Company (WFC) : Free Stock Analysis Report
 
Honeywell International Inc. (HON) : Free Stock Analysis Report
 
General Dynamics Corporation (GD) : Free Stock Analysis Report
 
Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report
 
Bank of America Corporation (BAC) : Free Stock Analysis Report
 
Allergan plc (AGN) : Free Stock Analysis Report
 
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