Monday, February 26, 2024

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 Vertex Pharmaceuticals Inc. (VRTX). 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 (+33.1% vs. +11.9%). High interest rates, buyouts, opening new branches and decent loan demand will aid net interest income (NII), though rising funding costs will weigh on it.

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

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

Shares of Salesforce have outperformed the Zacks Computer - Software industry over the past year (+79.5% vs. +59.8%). The company is benefiting from a robust demand environment as customers are undergoing a major digital transformation. Salesforce’s sustained focus on aligning products with customer needs is driving the top line.

Continued deal wins in the international market are another growth driver. The buyout of Slack has positioned the company as a leader in enterprise team collaboration and improved its competitive standing versus Microsoft Teams. Salesforce’s strategy of continuously expanding generative AI offerings will help the company tap the growing opportunities in the space.

However, stiff competition and unfavorable currency fluctuations are concerns. Also, the challenging macroeconomic environment could hurt its growth prospects.

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

Shares of Vertex Pharmaceuticals have outperformed the Zacks Medical - Biomedical and Genetics industry over the past year (+49.7% vs. -6.1%). The company’s cystic franchise sales continue to grow, driven by its triple therapy, Trikafta/Kaftrio. New reimbursement agreements in ex-U.S. markets and label expansions to younger age groups are driving Trikafta/Kaftrio sales higher.

Vertex saw rapid success in its non-CF pipeline candidates’ development in 2023. Its one-shot gene therapy, Casgevy, was approved for two blood disorders in multiple regions, which diversified its commercial opportunity.

Vertex is on track to submit regulatory applications for VX-548 in acute pain and for vanzacaftor triple in CF by mid-2024. Vertex faces minimal competition in its core CF franchise.

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

Other noteworthy reports we are featuring today include Palo Alto Networks, Inc. (PANW), Fiserv, Inc. (FI) and The Williams Companies, Inc. (WMB).

Mark Vickery
Senior Editor

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>>>