Top Stock Reports for JPMorgan, Mastercard & AbbVie

Friday, September 14, 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), Mastercard (MA) and AbbVie (ABBV). 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 >>>

Buy-ranked JPMorgan’s shares have outperformed the Zacks Major Regional Banks industry over the past three months (+5.2% vs. +1.5%). 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. While dismal mortgage banking performance (as originations continue to decline) remains a major concern, lower tax rates and easing of stringent regulations are expected to offer some support. Also, the company's enhanced capital deployment plans reflect strong balance sheet.

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

Shares of Mastercard have increased +53.4% over the past year, significantly outperforming the Zacks Financial Transaction Services industry’s rally of +36.1%. The Zacks analyst thinks the company is poised for growth, given its solid market position, ongoing expansion and digital initiatives plus significant opportunities from the secular shift toward electronic payments.

The buyouts of VocaLink and NuData Security complement efforts to participate in new payment flows, and enhance safety and security offerings. The company has seen the Zacks Consensus Estimate for 2018 and 2019 earnings being revised upward over the last 30 days. However, escalating costs, higher incentives and rewards will put pressure on its bottom line.

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

AbbVie’s shares have lost -0.4% year to date, underperforming the Zacks Large Cap Pharmaceuticals industry's rally of +6.6%. The Zacks analyst thinks AbbVie’s key drug, Humira has been performing well based on strong demand trends, despite new competition.

Moreover, Imbruvica has multibillion dollar potential and AbbVie is exploring the possibility of label expansion into solid tumors and autoimmune diseases. Mavyret’s launch has also been stronger than expected. Mavyret has become a major growth driver for AbbVie in a short time on the market.

AbbVie has an impressive late-stage pipeline with launch of several products with multibillion-dollar potential expected in the near term. AbbVie expects to launch more than 20 new products or line extensions of marketed drugs before Humira biosimilar competition begins in the United States in 2023. Potential biosimilar competition to Humira in Europe this year is an overhang.

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

Other noteworthy reports we are featuring today include CVS Health (CVS), Schwab (SCHW) and Estee Lauder (EL).

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

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

Branch Expansion, Loan Growth to Aid JPMorgan (JPM) Revenues

Acquisitions, Investments in Technology Aid Mastercard (MA)

AbbVie's (ABBV) Humira & Mavyret Aid Sales Amid Competition

Featured Reports

CVS Health (CVS) Rides on PBM, Aetna Deal Looks Promising

The Zacks analyst looks forward to the increasing demand for CVS Health's PBM and specialty business.

Trading Focus, Rate Hikes Aid Schwab (SCHW), Expenses a Woe

Per the Zacks analyst, increased focus on improving trading revenues, higher rates, strengthening advisor solutions business aid Schwab's profitability.

Estee Lauder (EL) Rides on Impressive Travel Retail Growth

Per the Zacks analyst, Estee Lauder is gaining from exceptional growth in travel retail and online channels.

Kinder Morgan (KMI) to Grow on Fee-Based Deals, Debts High

Fee-based contracts for Kinder Morgan's extensive network of pipeline projects will provide it with stable revenues.

CommScope (COMM) Focuses on 5G Transition Despite Demand Woes

Per the Zacks analyst, CommScope is focusing on solutions that support wireline and wireless network convergence for seamless 5G transition despite volatility in demand for copper-based solutions.

Better Pricing, Higher Premiums Aid American Financial (AFG)

Per the Zacks analyst, American Financial is poised for growth on consistent price increase in property and casualty business, niche presence in the P&C and annuity markets and strategic acquisitions.

Strong Money Transfer Segment Aids Euronet's (EEFT) Growth

Per the Zacks analyst, the performance of Euronet's Money Transfer Segment driven by the Walmart agreement, expansion of Ria Money Transfer and buyouts of HiFX, IME and XE fuel its growth.

New Upgrades

Leggett (LEG) Banks on Strategic Buyouts to Drive Profits

Per the Zacks analyst, Leggett's acquisition strategies will facilitate the company's top-line, organic growth and margins over the long term.

McCormick's (MKC) CCI Program to Boost Savings & Margins

Per the Zacks analyst, McCormick is focusing on enhancing savings via Comprehensive Continuous Improvement (CCI) program. This is likely to aid gross margin expansion of 175-225 bps in fiscal 2018.

Strategic Acquisitions & Partnerships Benefit Amdocs (DOX)

Per the Zacks analyst, strategic acquisitions like Vubiquity and UXP Systems have strengthened Amdocs' portfolio. Also, partnerships are helping it to expand clientele.

New Downgrades

Increasing Investments Amid Stiff Competition Hurts SAP

Per the Zacks analyst, SAP's increasing investments in standardized converged S/4HANA platform will limit margin expansion. Further, stiff competition in most of the markets is a major concern.

RH Plagued by Intense Competition & Tariff Related Concerns

Per the Zacks analyst, RH's high dependence on global trade makes the company vulnerable to tariff and tax implementation. Also, stiff competition in the home furnishings sector is a concern.

Higher Input Cost, Maintenance Outages Ails Allegheny (ATI)

Per the Zacks analyst, higher nickel prices and planned maintenance outages at its production facilities are likely to weigh on Allegheny's margins in the near term.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
 
Mastercard Incorporated (MA) : Free Stock Analysis Report
 
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
 
The Estee Lauder Companies Inc. (EL) : Free Stock Analysis Report
 
CVS Health Corporation (CVS) : Free Stock Analysis Report
 
AbbVie Inc. (ABBV) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research