Top Research Reports for JPMorgan, Altria & Charter Communications

Tuesday, September 4, 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 JPMorgan (JPM), Altria (MO) and Charter Communications (CHTR). 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 >>>

JPMorgan’s shares have outperformed the Zacks Major Regional Banks industry over the last six months (-0.4% vs. -2.8%). Also, the company has an impressive earnings surprise history, having surpassed expectations in each of the trailing four quarters.

The Zacks analyst thinks expansion into new markets, focus on strengthening the card business, higher interest rates and rising loan demand will benefit the bank’s financials. Also, lower tax rates and easing of stringent regulations are expected to offer some support.

However, dismal mortgage banking performance (as originations continue to decline) remains a major concern. This is expected to hurt revenue growth to some extent in the near-term.

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

Shares of Altria have outperformed the Zacks Tobacco industry in the last six months (-8.7% vs. -18.8%). Altria has been delivering year-over-year bottom-line growth for quite some time and maintained the upside in second-quarter 2018.

Performance during the quarter was mainly backed by lower outstanding shares and reduced adjusted tax rate. In fact, solid performance in the first half of 2018 propelled management to raise 2018 view. The Zacks analyst thinks Altria has been progressing well with reduced risk products. Pricing also continues to drive the company’s top line.

On the flip side, stern FDA regulations combined with increased health consciousness has been taking a toll on cigarette sales. Notably, cigarette shipment volumes fell 10.8% year over year during second quarter, wherein total cigarette retail share declined 50.2%. Sadly, volumes in this category are expected to remain soft in the forthcoming periods, owing industry-wide headwinds.

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

Charter Communications’ shares have underperformed the Zacks Cable TV industry over the past year (-21.1% vs. -16.4%). The Zacks analyst thinks Charter is benefiting from subscriber growth in residential and commercial internet and voice segment.

The partnership with Comcast to develop back-end software to support services for Xfinity mobile offering is significantly positive. The collaboration will help in saving costs. Moreover, the launch of Spectrum Mobile service under mobile virtual network operator (MVNO) reseller agreement with Verizon is positive for the company.

However, Charter continues to struggle due to a saturated and competitive multi-channel U.S. video market. The company also faces stiff competition from online TV streaming service providers. The company's high debt level and consolidation-related woes are major headwinds.

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

Other noteworthy reports we are featuring today include Corning (GLW), Baxter (BAX) and lululemon (LULU).

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Senior Editor

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

Branch Expansion to Aid JPMorgan (JPM), Mortgage Fees a Woe

RRPs to Aid Altria (MO), Soft Cigarette Volumes a Concern

Subscriber Gain, Wireless Initiatives Benefit Charter (CHTR)

Featured Reports

Renal Care Unit Aids Baxter (BAX) Amid Cyclophosphamide Issues

Baxter's Renal Care segment has significantly driven its topline. However, the Zacks analyst is pessimistic about headwinds related to generic competition for cyclophosphamide.

Global Jet Demand Aids Triumph (TGI), Rising Rates to Hurt

Per the Zacks analyst, increasing global demand for narrow-body jets are boosting Triumph Group's top line.

Oasis Petroleum (OAS) Rides on Stellar Bakken Operations

While robust Bakken operations are driving the output and cash flow of Oasis Petroleum, the Zacks analyst is concerned about geographical concentration risk, which may hamper its growth.

Oil & Gas Buoys Franco-Nevada (FNV), Mining Production Ails

Per the Zacks analyst, improved performance at Oil & Gas segment aided by higher oil prices and recent acquisitions will offset the impact of lower production from mining assets, mainly Candelaria.

lululemon (LULU) Tracks Well on International Expansion

Expansion in international markets is a key aspect of Lululemon's long-term growth strategy.

Molina Healthcare (MOH) Gains on Restructuring Initiatives

Per the Zacks analyst, the company's restructuring and profitability improvement plan has helped it to grow by optimizing operational efficiency and cutting down on costs.

Perrigo (PRGO) Rides on Restructuring Plans Amid Competition

Perrigo's restructuring initiatives will generate millions in annual savings and allow it to focus on expanding its leading segments.

New Upgrades

Corning (GLW) Rides on Demand Uptrend & Expansion Strategy

Per the Zacks analyst, solid demand for Gorilla Glass 5 and fiber optic products along with penetration into developing markets and product portfolio expansion boosts Corning's financial performance.

Patterson-UTI (PTEN) to Gain from Proprietary APEX Rigs

The Zacks analyst believes that Patterson-UTI's efficient and technologically-advanced APEX land rigs will help the company to command higher dayrates and utilization.

Solid Product Portfolio & Networks Benefit Ubiquiti (UBNT)

Per the Zacks analyst, Ubiquiti's operating cash flow will likely improve owing to impressive growth momentum in UniFi product family and competitively priced network communication platform.

New Downgrades

Dull National Market, Competition Hurt Outfront Media (OUT)

Per the Zacks analyst, a dull national advertising market continues to hurt Outfront Media's business. Also, competition from other outdoor advertisers impacts its pricing power.

UMB Financial (UMBF) Exposed to Rising Costs & Competition

Per the Zacks analyst, investments in newer technologies and building distribution networks are likely to weigh on UMB Financial's expense base. Also, intense competition remains a concern.

Michaels Companies' (MIK) Dismal Sales Worries Investors

Per the Zacks analyst, the top line seems troubled as evident from the negative sales surprise in 10 of the last 14 quarters.

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Altria Group, Inc. (MO) : Free Stock Analysis Report
 
lululemon athletica inc. (LULU) : Free Stock Analysis Report
 
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
 
Corning Incorporated (GLW) : Free Stock Analysis Report
 
Charter Communications, Inc. (CHTR) : Free Stock Analysis Report
 
Baxter International Inc. (BAX) : Free Stock Analysis Report
 
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