Thursday, August 10, 2023

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), Salesforce, Inc. (CRM) and Abbott Laboratories (ABT). 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 (+32.0% vs. -1.3%). The company acquired failed First Republic Bank for $10.6 billion, which is expected to be accretive to earnings. The deal adds almost $173 billion in loans and will increase market share among wealthy clients.

Higher rates, global expansion initiatives and a decent loan demand will support net interest income (NII). Moreover, supported by solid earnings strength, the company will be able to sustain enhanced capital deployments.

Yet, the volatile nature of the capital markets business and higher mortgage rates are likely to make fee income growth challenging. The Zacks analyst expects non-interest income (managed) to fall 2.1% in 2023. Mounting expenses pose a major headwind, and we anticipate the same to rise 10.4% in 2023.

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

Shares of Salesforce have outperformed the Zacks Computer - Software industry over the year-to-date period (+55.2% vs. +35.8%). The company is benefiting from a robust demand environment as customers are undergoing a major digital transformation. Its sustained focus on introducing more aligned products as per customer needs is driving its top-line.

Continued deal wins in the international market is another growth driver. The acquisition of Slack has positioned the company as a leader in enterprise team collaboration solution space and placed at a better competitive position against Microsoft’s Teams product.

However, stiff competition and unfavorable currency fluctuations are concerns. Besides, challenging macroeconomic environment might hurt its growth prospects in the near-term.

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

Shares of Abbott Laboratories have declined -2.0% over the past six months against the Zacks Medical - Products industry’s decline of -2.9%. The company is facing steep year-over-year decline in COVID testing-related sales hurt growth. Further, the decision to exit the pediatric nutrition business in China might impede overall growth in the coming period.

Nevertheless, Abbott is strategically expanding its global presence to address the unmet demand for advanced medical technologies. Within the EPD business, which is solely based in emerging markets. Within Core Diagnostics, Abbott is gaining market share following the end of the public health emergency, particularly in the United States and Europe region.

Within Diabetes Care, Abbott is scaling up the production of Libre and gaining reimbursement approval in several countries. Innovations and market expansion efforts are helping it offset the impact of inflation and supply disruptions.

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

Other noteworthy reports we are featuring today include Morgan Stanley (MS), HCA Healthcare, Inc. (HCA) and General Motors Company (GM).

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>>>