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Top Stock Reports for JPMorgan, NIKE & Union Pacific

·5-min read

Monday, January 17, 2022

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), NIKE, Inc. (NKE), and Union Pacific Corporation (UNP). 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 lost ground following last week's Q4 earnings report when the company beat EPS estimates but modestly missed on revenues. More important than the top-line miss was management's outlook on the costs side that were significantly above what analysts were projecting. These issues aside, the Zacks analyst sees the company as well positioned given its diversified business, strategic add-on acquisitions, as well as the initiatives to expand into new markets.

Opening new branches, digitization initiatives, and a robust IB pipeline are expected to support JPMorgan's financials. JPM is likely to keep enhancing shareholder value through impressive capital deployment activities. Lower interest rates in the near term, however, weigh on its margins. Normalization of the trading business is another major headwind.

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

NIKE shares have lost -5.7% over the past six months against the Zacks Shoes and Retail Apparel industry’s loss of -5.8%. NIKE expects to experience volatility in fiscal 2022 on the back of disruptions caused by the COVID-variants. The inventory supply is also likely to significantly lag consumer demand in the year across brands.

The Zacks analyst, however, believes that return of sports activity, reopening of stores and continued growth of NIKE Digital due to rapid digitization efforts aided NIKE’s Q2 revenues. NIKE Direct business also benefited from robust growth in North America Direct, including record sales during the Black Friday week. NKE remains on track to deliver on its fiscal 2025 outlook.

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

Shares of Union Pacific have gained +9.5% in the last three months against the Zacks Rail industry’s gain of +5.6%. The Zacks analyst is impressed with Union Pacific's efforts to reward its shareholders even during the current uncertain times. UNP's strong free cash flow generating ability also supports its shareholder-friendly activities.

In December 2021, Union Pacific's board announced a 10% hike in its quarterly dividend. Management anticipates share repurchases worth roughly $7 billion in 2021. Uptick in freight revenues as economic activities pick up the pace is another major positive. Increase in expenditure on fuel, however, has been weighing on the margins.

(You can read the full research report on Union Pacific here >>>)

Other noteworthy reports we are featuring today include Applied Materials, Inc. (AMAT), BlackRock, Inc. (BLK) and Lam Research Corporation (LRCX).

Sheraz Mian

Director of Research

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

New Branches, Buyouts Aid JPMorgan (JPM) despite High Costs

NIKE's (NKE) Sales Gain on Improve Traffic & Digital Growth

Dividends Lift Union Pacific (UNP) Despite Supply-Chain Woes

Featured Reports

Applied Materials (AMAT) Rides on Foundry & Logic Spending
Per the Zacks analyst, solid customer spending in foundry and logic which are required in IoT, communications, 5G, automotive, power, and sensor applications is benefiting Applied Materials.

Buyouts, Active Equity Focus Aid BlackRock (BLK), Costs Ail
Per the Zacks analyst, BlackRock's acquisition efforts and initiatives to restructure the active equity business will aid the top line.

Lam Research (LRCX) Benefits From Strengthening NAND Demand
Per the Zacks analyst, increasing NAND requirement in accelerating 5G migration, video, and new game consoles is driving the top-line growth of Lam Research.

Moderna (MRNA) Rides High on Success of Coronavirus Vaccine
Per the Zacks analyst, Moderna's COVID-19 vaccine is approved for emergency use in multiple countries which is a positive.

Enterprise (EPD) Banks On Its $2.9B Key Midstream Projects
Per the Zacks analyst, Enterprise will generate additional fee-based revenues from its $2.9-billion key midstream projects, currently under construction.

Centene (CNC) Gains from Better Membership, High Costs Ail
Per the Zacks analyst, its rising membership on the back of several contract wins and expansion across different regions has helped it grow.

Investments Aid Consolidated Edison (ED), COVID Impacts Woe
Per the Zacks analyst, investments tend to boost Consolidated Edison's long-term growth. Yet delay in collection of charges on the back of Covid-19 disruptions might hurt the stock.

New Upgrades

Solid Acute Therapies Unit Continues to Aid Baxter (BAX)
Per the Zacks analyst, higher product demand, despite COVID-19 challenges, continues to drive Baxter's Acute Therapies segment, thereby fortifying the company's growth.

SYNNEX (SNX) Benefits From Rising Remote Working Tool Demand
Per the Zacks analyst, SYNNEX is benefiting from the COVID-19 pandemic-led work-from-home and online-learning wave, which is spurring demand for offsite-working, and learning hardware and software.

AXIS Capital (AXS) Set to Grow on Improved Portfolio Mix
Per the Zacks analyst, AXIS Capital continues to build on Specialty Insurance, Reinsurance plus Accident and Health. Improved portfolio mix and effective capital deployment should pave way for growth.

New Downgrades

High Debt & Intense Peer Pressure Hurt Avis Budget (CAR)
Per the Zacks analyst, Avis Budget faces intense competition from other players, mainly in terms of pricing. Also, a low cash balance is a concern.

Stiff Rivalry, Soft Industrial Segment Ail Woodward (WWD)
Per the Zacks analyst, stiff competition and weak Industrial unit as a result of the global supply chain disruptions strain Woodward's margins. Volatility in regional markets is another major concern.

Inflated Costs, Supply Chain Issues to Hurt Greif (GEF)
The Zacks analyst is concerned that Greif's margins will continue to bear the brunt of high raw material, chemical, and transportation costs. Labor shortage and supply chain issues also remain woes.


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
 
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
 
NIKE, Inc. (NKE) : Free Stock Analysis Report
 
BlackRock, Inc. (BLK) : Free Stock Analysis Report
 
Union Pacific Corporation (UNP) : Free Stock Analysis Report
 
Lam Research Corporation (LRCX) : Free Stock Analysis Report
 
Applied Materials, Inc. (AMAT) : Free Stock Analysis Report
 
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