Advertisement
New Zealand markets closed
  • NZX 50

    12,105.29
    +94.63 (+0.79%)
     
  • NZD/USD

    0.5985
    -0.0020 (-0.34%)
     
  • NZD/EUR

    0.5538
    -0.0004 (-0.08%)
     
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • OIL

    82.65
    +1.30 (+1.60%)
     
  • GOLD

    2,236.80
    +24.10 (+1.09%)
     
  • NASDAQ

    18,255.70
    -25.14 (-0.14%)
     
  • FTSE

    7,961.41
    +29.43 (+0.37%)
     
  • Dow Jones

    39,765.15
    +5.07 (+0.01%)
     
  • DAX

    18,494.48
    +17.39 (+0.09%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • NZD/JPY

    90.5110
    -0.2690 (-0.30%)
     

The Zacks Analyst Blog Highlights: Wells Fargo, JPMorgan, Bank of America, Washington Federal and Fifth Third Bancorp

Best Buy (BBY) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.

For Immediate Release

Chicago, IL – Dec 22, 2017 – 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 Wells Fargo WFC, JPMorgan JPM, Bank of America BAC, Washington Federal, Inc. WAFD and Fifth Third Bancorp FITB.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Thursday’s Analyst Blog:

Christmas Comes Early for Bank Stocks: Congress Passes Tax Reform

A huge Christmas gift has arrived early for corporate America as the much-awaited tax reform bill has been passed. The bill cuts corporate tax to 21% from 35%, allowing a one-time tax break to companies that have stashed cash overseas.

ADVERTISEMENT

This is likely lead to huge savings and cash repatriation for the companies. The bill is likely to benefit a few sectors along with some stocks. If we talk about banks and technology stocks, the former stand to benefit more than the latter.

While tech companies that have significant amounts of cash stashed overseas will gain from one-time repatriation, they are less likely to benefit from tax rate cut as compared to the banks.

Wondering how banks are anticipated to gain more? Apart from bringing back overseas cash, banks will benefit considerably from lower tax rates. Per a Wells Fargo analyst, finance companies pay the highest effective tax among the major S&P sectors.

Therefore, several large banks including Wells Fargo, JPMorgan and Bank of America are likely to record a double-digit increase in earnings in the coming years driven by lower tax rate. Further, it will be easier for global banks to compete with lower taxed foreign banks.

Additionally, smaller domestic banks will also gain. They are expected to use increased earnings by upgrading technology and may even pass on the benefits to their employees in form of pay rise and one-time bonus. Well, many banks including Washington Federal, Inc., Wells Fargo and Fifth Third Bancorp have already announced such initiatives.

Also, as overseas cash is brought back, it is expected to provide an impetus to M&As activities, thereby boosting investment banking. Also, as the bill will lower tax rates on wealthy individuals, asset management units of banks are expected to see a rise in money available for investment.

Moreover, as the tax bill spurs economic improvement leading to a rise in lending activities and higher interest rates, banks will benefit indirectly as well. So, this is a win-win situation for the banks.

Of the above-mentioned banks, Washington Federal carries a Zacks Rank #2 (Buy), while JPMorgan, Wells Fargo, BofA and Fifth Third have a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks’ Best Private Investment Ideas

While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.

Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.

Click here for Zacks' private trades >>

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

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
 
J P Morgan Chase & Co (JPM) : Free Stock Analysis Report
 
Fifth Third Bancorp (FITB) : Free Stock Analysis Report
 
Wells Fargo & Company (WFC) : Free Stock Analysis Report
 
Bank of America Corporation (BAC) : Free Stock Analysis Report
 
Washington Federal, Inc. (WAFD) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.