Monday, October 30, 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), The Home Depot, Inc. (HD) and Salesforce, Inc. (CRM). 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 >>>

JPMorgan Chase shares have struggled lately given the uncertain macroeconomic backdrop, but they have outperformed the broader market (+9% for JPM vs. +6.8% for the S&P 500 index) and the Zacks Banks - Major Regional industry over the past year (+9% vs. -16.1%). High interest rates, buyouts, global expansion efforts and decent loan demand will aid net interest income (NII), though rising funding costs will weigh on it.

Despite visibility of some green shoots in the investment banking (IB) business, IB fees are less likely to improve soon. This, along with the volatile nature of the capital markets business and high mortgage rates, will likely hamper fee income growth.

However, mounting costs are a woe and we expect it to rise 10.7% in 2023. Aided by solid earnings strength and balance sheet, it will be able to sustain capital distributions.

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

Shares of Home Depot have declined -5.6% over the past six months against the Zacks Building Products - Retail industry’s decline of -7.2%. The company has been witnessing significant benefits from the execution of the “One Home Depot” investment plan, which focuses on expanding supply chain facilities, technology investments and enhancement to the digital experience.

The interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic for the past few quarters. The company remains on track with its strategic investments to build a Pro ecosystem.

However, Home Depot's top and bottom-lines declined year over year in second-quarter fiscal 2023. Results were impacted by a deflation in lumber prices and pressures in several big-ticket discretionary categories. HD retained its conservative view for fiscal 2023.

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

Salesforce shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+49.2% vs. +35.1%). 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 >>>)

Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), Advanced Micro Devices, Inc. (AMD) and Intel Corporation (INTC).

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>>>