Yahoo Finance Top Research Reports for JPMorgan Chase, Texas Instruments & Morgan Stanley
Friday, April 26, 2024
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 & Co. (JPM), Texas Instruments Inc. (TXN) and Morgan Stanley (MS). 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 Chase have outperformed the Zacks Banks - Major Regional industry over the past year (+44.8% vs. +39.8%). The company’s first-quarter 2024 results show a rebound in investment banking (IB) business. High rates, buyouts, opening new branches and solid loan balance will aid net interest income (NII), though higher funding costs will weigh on it.
While there has been a resurgence in deal-making activities, a complete revival will still take some time. Thus, the performance of the IB business is not expected to improve drastically.
The volatile nature of the capital markets business and high mortgage rates will likely hamper fee income. Owing to these challenges, we expect non-interest income (managed) to rise marginally in 2024. Mounting expenses will hurt profits.
(You can read the full research report on JPMorgan Chase here >>>)
Texas Instruments’ shares have gained +3.6% over the year-to-date period against the Zacks Semiconductor - General industry’s gain of +47.0%. The company’s first quarter results were hurt by widespread weakness in the industrial, and communication equipment markets. Weak momentum in the enterprise systems market was also a concern.
Sluggishness in its Analog, Embedded Processing and Other segments was a negative. Increasing manufacturing costs across all segments is hurting its top line. Nevertheless, the company’s growing investments in new growth avenues and competitive advantages remain tailwinds. Its deepening focus on manufacturing, advanced technology infusion, product portfolio expansion and consistent returns to shareholders is another positive.
However, weakening momentum across the automotive market remains a major concern. Overall weak demand environment and macroeconomic challenges are likely to be headwinds.
(You can read the full research report on Texas Instruments here >>>)
Shares of Morgan Stanley have gained +34.4% over the past six months against the Zacks Financial - Investment Bank industry’s gain of +41.2%. The company’s first-quarter 2024 results reflect the resurgence of the investment banking (IB) business.
Despite this favorable development, the ambiguity on the performance of the capital markets is a major concern. Hence, this is expected to hurt the Institutional Securities segment’s prospects. Elevated costs are likely to hamper profitability. However, the company's new strategic alliance with Mitsubishi UFJ will bolster its presence in Japan.
The initiatives to become less dependent on capital-markets-driven revenue sources, inorganic expansion efforts and higher rates will likely support top-line growth. Also, a solid balance sheet and liquidity position make the company’s capital distributions sustainable. This will, thus, enhance shareholder value.
(You can read the full research report on Morgan Stanley here >>>)
Other noteworthy reports we are featuring today include United Rentals, Inc. (URI), Ross Stores, Inc. (ROST) and Willis Towers Watson Public Limited Co. (WTW).
Mark Vickery
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
Buyouts, Rates & Loans Aid JPMorgan (JPM), Fee Income Ails
Sluggishness in Analog Segment Ails Texas Instruments (TXN)
Expansion Efforts Aid Morgan Stanley (MS), High Costs a Woe
Featured Reports
Yak Buyout Aids United Rentals (URI) Amid Stiff Competition
Per the Zacks analyst, United Rental is benefiting from solid end-market demand and expansion through acquisitions. However, intense competition is a risk.
Ross Stores' (ROST) Expansion & Other Efforts Bode Well
Per Zacks analyst, Ross Stores' store expansion focuses on increasing penetration in the existing and new markets. The company is gaining from its merchandise across banners, which is boosting comps.
Willis Towers (WTW) Poised to Gain from Segmental Strength
Per the Zacks analyst, Willis Towers is set to gain from solid customer retention levels, growing new business and geographic diversification across segments. Yet, high costs weighing on margin ails.
Strong Demand & Acquisitions Aid Fortive's (FTV) Performance
Per the Zacks analyst, Fortive's performance is gaining from strong customer demand trends and synergies from the acquisitions. However, stiff competition and leveraged balance sheet remain concerns.
Viatris (VTRS) Restructuring Move Positive, High Debt A Woe
Per the Zacks analyst, Viatris efforts to divest non-core businesses to pay down huge debt is positive. The recent acquisitions to create an ophthalmology franchise will diversify the portfolio.
Antero's (AR) Appalachian Low-Cost Drilling Inventory Aids
Per the Zacks analyst, Antero Resources' premium low-cost Appalachian drilling inventory reflects a promising production outlook. However, the company's lack of diversification is concerning.
Strategic Pacts Aid Myriad Genetics (MYGN), Forex Woe Ails
Per Zacks analyst, partnership with Illumina broadens Myriad Genetics' clinical research opportunities and drive CDx development for gene-based therapies. Forex woes remain a concern.
New Upgrades
Backlog, Positive Budget to Bolster Huntington Ingalls (HII)
Per the Zacks analyst, solid backlog count for Huntington Ingalls boosts its revenue growth prospects. Also, favorable U.S. budget for shipbuilding is expected to bolster the stock.
Higher TiO2 Demand, Cost Actions Aid Kronos Worldwide (KRO)
Per the Zacks analyst, higher titanium dioxide (TiO2) demand will drive the company's sales volumes. Its internal cost-reduction initiatives will also result in improved margins.
Groupon's (GRPN) Local and Travel Categories Drive Growth
Per the Zacks analyst, Groupon is benefitting from strong momentum across its local and travel categories, particularly in the North American region.
New Downgrades
Marketing & Product Development Costs Hurt Green Dot (GDOT)
Per the Zacks analyst, Green Dot's increasing expenses toward sales, marketing and product development is likely to keep the bottom line under pressure.
Rising SG&A Expenses and High Capex to Ail Penske (PAG)
The Zacks analyst is concerned about Penske's rising SG&A expenses, which are likely to hinder its margins. Also, heavy investment in growth and expansion is likely to strain its cash flows.
Lower Fertilizer Prices, High Debt Ail Nutrien (NTR)
Per the Zacks analyst, lower fertilizer prices partly due to weaker demand will weigh on the company's bottom line. Its high debt level also poses a concern.
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JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Morgan Stanley (MS) : Free Stock Analysis Report
Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
Willis Towers Watson Public Limited Company (WTW) : Free Stock Analysis Report
United Rentals, Inc. (URI) : Free Stock Analysis Report
