Yahoo Finance Top Research Reports for JPMorgan Chase, Merck & SAP
Wednesday, March 20, 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), Merck & Co., Inc. (MRK) and SAP SE (SAP). 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 (+53.0% vs. +37.0%). Higher interest rates, buyouts, opening new branches and decent loan demand will aid net interest income (NII), though rising funding costs will weigh on it.
While there has been a resurgence in M&A activities so far this year, a complete revival in deal-making is not certain. Thus, the performance of the investment banking (IB) business is not expected to improve significantly.
Along with this, the volatile nature of the capital markets business and high mortgage rates, will likely hamper fee income growth. Mounting operating expenses will hurt profits.
(You can read the full research report on JPMorgan Chase here >>>)
Merck shares have gained +15.7% over the past six months against the Zacks Large Cap Pharmaceuticals industry’s gain of +16.7%. The company’s products like Keytruda and Gardasil have been driving sales. With continued label expansion into new indications, particularly earlier-stage launches, Keytruda is expected to see continued growth.
Animal health and vaccine products are core growth drivers. Merck boasts a strong cancer pipeline, including Keytruda, which should drive long-term growth. The company is investing in M&A activity to strengthen its pipeline.
However, generic competition for several drugs and rising competitive pressure, mainly on the diabetes franchise, will continue to be overhangs on the top line. There are concerns about Merck’s ability to grow its non-oncology business ahead of Keytruda’s loss of exclusivity later in the decade.
(You can read the full research report on Merck here >>>)
Shares of SAP have outperformed the Zacks Computer - Software industry over the past year (+54.7% vs. +51.2%). The company’s performance is benefiting from continued strength in its cloud business, especially the Rise with SAP and Grow with SAP solutions. Momentum in SAP’s business technology platform, particularly the S/4HANA solution, along with proliferation of generative AI bodes well.
SAP is now focusing more on vital strategic growth areas, especially Business AI, and position the company for future growth. Management also reaffirmed its 2025 long-term targets for cloud and total revenues. Frequent product launches, and strategic acquisitions and collaborations are other tailwinds.
However, continued softness in the Software license and support business segment coupled with global macroeconomic weakness are concerning. Increasing costs and stiff competition are additional headwinds.
(You can read the full research report on SAP here >>>)
Other noteworthy reports we are featuring today include Lam Research Corporation (LRCX), Regeneron Pharmaceuticals, Inc. (REGN) and Brown-Forman Corporation (BF.B).
Director of Research
Sheraz Mian
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, High Rates Aid JPMorgan (JPM) Amid Fee Income Woes
Keytruda to Remain Merck's (MRK) Key Top-Line Driver
SAP To Benefit From Continued Momentum in Cloud Business
Featured Reports
Lam Research (LRCX) Benefits from Etch & Deposition Strength
Per the Zacks analyst, growing etch and deposition intensity owing to increasing technology inflections in 3D architectures, is benefiting Lam Research's prospects.
Dupixent Profits, Strong Pipeline Fuels Regeneron (REGN)
Per the Zacks analyst stellar performance of Dupixent fuels Regeneron even as lead drug Eylea faces disruption. The company's progress with the oncology portfolio & other candidates is also impressive
Brown-Forman's (BF.B) Premiumization Strategy Bodes Well
Per the Zacks analyst, Brown-Forman's premiumization strategy looks good, as evident from growth of its premium and super-premium brands. Strength in the Jack Daniel's family of brands is a key driver
Knight-Swift (KNX) Benefits From Dividend Amid Cost Woes
The Zacks analyst likes the shareholder-friendly measures adopted by Knight-Swift. However, rise in operating expenses and high debt are likely to hurt the bottom line.
Rising Transactions Aid Euronet (EEFT), Escalating Costs Hurt
Per the Zacks analyst, Euronet's topline is driven by well-performing segments, as well as increasing digital transactions and diversity. However, high costs might strain margins.
Solid E-Jets Demand Aid Embraer (ERJ), High Fuel Price Ail
Per the Zacks Analyst, solid market demand for its E-Jet family is boosting Embraer's commercial aviation revenues. However, rising fuel price might lead to lower jet orders for the company.
CONMED's (CNMD) Robust Product Portfolio Offset Competition
Per the Zacks analyst, CONMED's robust product portfolio, along with a solid recurring revenue base and solid market trends, are encouraging. However, tuff regulatory requirement space is worrying.
New Upgrades
Strong SMB clientele Aids BILL Holdings' (BILL) Prospects
Per the Zacks analyst, BILL is benefiting from an expanding small and medium business (SMB) clientele, as well as a diversified business model.
Solid Demand, Pricing Actions Aid Carpenter Technology (CRS)
Per the Zacks analyst, Carpenter Technology is gaining from strong demand across its end-use markets. Cost-reduction initiatives are also driving growth.
NuStar (NS) to Gain from Acquisition by Sunoco
The Zacks analyst believes that NuStar Energy's buyout by Sunoco LP is expected to enhance growth prospects, with more cash flow for reinvestment across an expanded opportunity set.
New Downgrades
Softness In Agility & Reliability Business Segments Ail Flex
Per the Zacks analyst, Flex's performance is affected due to weakness across the Agility and Reliability Solutions segments. Stiff competition is an added concern.
Rising Operating Costs and Forex Woes Hurt MRC Global (MRC)
Per the Zacks analyst, MRC Global is struggling with high operating costs, which in turn, are hurting the company's bottom line. Forex woes are an added concern.
Increased Costs Likely to Hurt Live Nation's (LYV) Prospects
Per the Zacks analyst, increased production expenses and artist activation costs are likely to hurt Live Nation. Also, interest rate fluctuations and ticketing business challenges are headwinds.
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Brown-Forman Corporation (BF.B) : Free Stock Analysis Report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report
Merck & Co., Inc. (MRK) : Free Stock Analysis Report
SAP SE (SAP) : Free Stock Analysis Report
Lam Research Corporation (LRCX) : Free Stock Analysis Report
