Advertisement
New Zealand markets closed
  • NZX 50

    12,845.64
    +91.06 (+0.71%)
     
  • NZD/USD

    0.6111
    +0.0015 (+0.24%)
     
  • NZD/EUR

    0.5582
    +0.0014 (+0.25%)
     
  • ALL ORDS

    8,491.50
    -7.20 (-0.08%)
     
  • ASX 200

    8,214.50
    -8.50 (-0.10%)
     
  • OIL

    75.49
    -0.36 (-0.47%)
     
  • GOLD

    2,674.20
    +34.90 (+1.32%)
     
  • NASDAQ

    20,271.97
    +30.21 (+0.15%)
     
  • FTSE

    8,253.65
    +15.92 (+0.19%)
     
  • Dow Jones

    42,863.86
    +409.74 (+0.97%)
     
  • DAX

    19,373.83
    +162.93 (+0.85%)
     
  • Hang Seng

    21,251.98
    +614.74 (+2.98%)
     
  • NIKKEI 225

    39,605.80
    +224.91 (+0.57%)
     
  • NZD/JPY

    91.1140
    +0.6210 (+0.69%)
     

The Zacks Analyst Blog Bank of America, Advanced Micro Devices, Linde, Comstock and Kingsway

For Immediate Releases

Chicago, IL – September 17, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Bank of America Corp. BAC, Advanced Micro Devices, Inc. AMD, Linde plc LIN, Comstock Holding Companies, Inc. CHCI and Kingsway Financial Services Inc. KFS.

Here are highlights from Tuesday’s Analyst Blog:

 

Top Analyst Reports for Bank of America, AMD and Linde

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 Bank of America Corp., Advanced Micro Devices, Inc. and Linde plc, as well as two micro-cap stocks Comstock Holding Companies, Inc. and Kingsway Financial Services Inc. The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.

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 >>>

Bank of America’s shares have outperformed the Zacks Banks - Major Regional industry over the past six months (+8.7% vs. +7.5%). The company’s net interest income (NII) will be positively impacted by the current high-rate regime and also rate cuts, however high funding costs are a concern.

The Zacks analyst projects NII to witness a CAGR of 1.9% by 2026. Its plans to open financial centers in new and existing markets and improve digital capabilities. These will support the top line. We project total revenues to grow 2.9% in 2024.

While the capital markets activity is showing signs of revival, the challenging macroeconomic environment might weigh on the investment banking (IB) business. Thus, fee income growth will likely be muted. We project fee income to rise in 2024 and decline in 2025. Due to continued investments in franchise, operating costs will remain high. We expect expenses to rise 1% in 2024.

(You can read the full research report on Bank of America here >>>)

Shares of AMD have gained +3.3% over the year-to-date period against the Zacks Electronics - Semiconductors industry’s gain of +26.4%. The company is benefiting from portfolio strength and an expanding partner base. It expects third-quarter 2024 revenues to grow 15% sequentially and 16% year over year driven by strong growth in the data center and the client segment.

Exiting second-quarter 2024, AMD had more than 900 public cloud instances available, with Netflix and Uber selecting fourth-gen EPYC public cloud instances. In the data center AI business, MI300 quarterly revenues exceeded $1 billion for the first time.

The momentum is expected to continue in the rest of 2024. Enterprise and Cloud AI customer pipeline remains robust. AMD and its partners, including Microsoft, Oracle, DELL, HPE, Lenovo, and Supermicro, have instinct platforms in production. However, weakness in the embedded and gaming business is a headwind.

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

Linde’s shares have outperformed the Zacks Chemical - Specialty industry over the year-to-date period (+15.2% vs. -16.4%). The company is a global leader in industrial gas manufacturing, supplying a wide range of essential gases to industries such as energy, steel, healthcare, manufacturing and electronics.

The firm secures long-term contracts with key on-site clients featuring minimum purchase agreements, helping to stabilize earnings during economic downturns. With a track record of raising dividends for 31 consecutive years, Linde remains committed to rewarding shareholders, supported by its robust business model.

However, increasing competition for new projects poses challenges to the company's return on investment. Additionally, the volatility of energy prices, particularly for natural gas and diesel fuel, presents a significant concern for profitability. Increasing regulatory burden may negatively impact the industrial gas producer’s overall financial health.

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

Shares of Comstock have outperformed the Zacks Building Products - Home Builders industry over the year-to-date period (+87.5% vs. +28.7%). This microcap company with market capitalization of $81.95 million recorded strong revenue growth of 11% year over year, reaching $21.4 million in the first half of 2024. This growth is driven by high demand for its premium, transit-oriented properties like The Hartford and Reston Metro Plaza, with fully leased spaces attracting high-profile tenants such as Google, Rolls-Royce, and GuidePoint Security.

The company’s focus on urban, commuter-friendly developments positions it well to capture long-term growth in the Washington D.C. market. Comstock's asset-light, debt-free model, combined with access to a $10 million credit facility, provides ample financial flexibility for future developments. Its diversified tenant base and strong occupancy rates reduce vacancy risk.

However, the company faces concentration risk with heavy reliance on key developments. A structural shift toward remote work also poses challenges to its office leasing performance.

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

Kingsway Financial Services’ shares have underperformed the Zacks Insurance - Property and Casualty industry over the year-to-date period (-7.4% vs. +26.3%). This microcap company with market capitalization of $216.37 million recently bought Systems Products International, Inc. ("SPI") and Digital Diagnostics Imaging, Inc. ("DDI") which boosted adjusted EBITDA to a run-rate of $16 million-$17 million.

Kingsway Financial Services targets two to three acquisitions annually, each expected to add $1 million-$3 million in EBITDA. The Extended Warranty segment (66% of revenue) provides high-margin, recurring income and has expanded beyond auto warranties to include heating, ventilation, air conditioning (HVAC) and plumbing. Its $626 million in net operating loss carryforwards (NOLs) provide tax advantages and enhance cash flow for reinvestment.

However, debt levels rose to $37.7 million, posing risks. Limited cash flow, sluggish revenue growth and execution challenges in acquisitions add pressure.

(You can read the full research report on Kingsway Financial Services here >>>)

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.

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

Bank of America Corporation (BAC) : Free Stock Analysis Report

Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report

Linde PLC (LIN) : Free Stock Analysis Report

Comstock Holding Companies, Inc. (CHCI): Free Stock Analysis Report

Kingsway Financial Services, Inc. (KFS) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research