Monday, December 12, 2022
Zacks Research Daily features top research results from our team of analysts. Today’s Research Daily features new research reports on 16 major stocks, including JPMorgan Chase & Co. (JPM), Intel Corp. (INTC) and Advanced Micro Devices, Inc. (AMD). These research reports have been handpicked from the approximately 70 reports published today by our team of analysts.
You can see all research reports from today here >>>
Shares of JP Morgan have outperformed the industry Zacks Banks – Major Regional over the past six months (+13.9% vs. +4.2%). In fact, JP Morgan’s third quarter 2022 results show the positive effects of higher rates and solid loan demand as well as strong business performance, while a deteriorating macroeconomic outlook has been a headwind.
The Zacks analyst believes new branch openings, strategic buyouts/investments, and global expansion and digitization efforts will continue to boost financials. Higher rates and a steady increase in loan demand will continue to support net interest income (NII). Still, the volatile nature of capital markets activity and rising mortgage rates may make it difficult to grow fee income. The constant increase in expenses remains a key problem.
(You can read the full JPMorgan research report here >>>)
IntelShares of Zacks Semiconductor – General Industry are down -45.2% year-to-date from -37.3%. The tech giant reported mixed results in the third quarter of 2022, in which net income exceeded Zacks’ consensus estimate while top income missed. Revenues and profits declined year over year, due to a challenging macroeconomic environment and slowing demand trends.
The Zacks analyst believes that production delays related to its 7nm ramp-up remain a concern. The imposition of new foreclosure restrictions in some markets, currency problems and high debt burdens are other headwinds. It is seeing increased competition in the server, networking and storage markets, while raw material cost inflation and signs of market saturation are worrying.
The Sino-US trade war is also weighing on its growth prospects. However, its Mobileye growth is expected to be driven by design gains amid an automotive industry recovery. The recovery in the enterprise sector of the data center segment is positive.
(You can read the full Intel research report here >>>)
Advanced micro-systems‘ Shares are down -48.7% over the past year against industry Zacks Electronics – Semiconductors loss of -25.9%. The Zacks analyst believes that Advanced Micro Devices’ data center GPU revenue was down significantly year-over-year compared to tough comparisons.
Nonetheless, AMD saw record sales of Xilinx FPGAs and networking data center products. Pensando DPUs also saw strong demand. However, Customer segment revenue was down year-over-year, reflecting lower PC shipments.
AMD’s results in Q3 2022 benefited from higher data center and embedded revenues. Its data center sales benefited from strong sales of third-generation EPYC server processors. Cloud revenue more than doubled year-over-year and grew sequentially as multiple hyperscalers expanded deployment of EPYC processors.
(You can read the full research report on Advanced Micro Devices here >>>)
Other noteworthy reports we feature today include Moderna, Inc. (MRNA), Target Corp. (TGT) and Suncor Energy Inc. (SU).
Note: Sheraz Mian leads the equity research department at Zacks and is a well-known expert on overall earnings. He is frequently quoted in the written and electronic press and publishes the weekly Earnings Trends and Earnings Overview reports. If you would like to receive an email notification whenever Sheraz publishes a new article, please click here>>>
To read today
Higher Rates, JPMorgan’s (JPM) Redemption Aid, Fee Income is a Misfortune
Intel (INTC) climbs on Mobileye & Data Center Business
Strong Product Portfolio and Partnerships Help AMD Prospects
Moderna’s (MRNA) reliance on COVID vaccine revenue is a misfortune
Although Moderna’s COVID vaccine sales have significantly boosted its cash resources, the Zacks analyst is concerned as other candidates in the company’s pipeline are years away from commercialization.
Consistent investments, targeted aid for renewable energies AVANGRID (AGR)
According to the Zacks analyst, AVANGRID’s steady investments to strengthen infrastructure and expand clean energy generation assets will boost its operation.
Pro-investor metrics boost Gartner (IT) despite low liquidity
According to the Zacks analyst, Gartner’s efforts to reward its shareholders through share buybacks are commendable. However, a low current ratio is a headwind.
Soft Comps & Margin Performance Concerns for Target (TGT)
According to the Zacks analyst, loose comps and low margins are concerns for Target. Sales got off to a smooth start in November. The company expects a low single-digit decline in comps in the fourth quarter.
Hologic (HOLX) Surgical Volume Increases, Margin Pressure Decreases
The Zacks analyst is impressed with the growth in Hologic’s surgical business on the return of procedural volumes as well as the acceleration of new lines of business. Increased expenses put pressure on margins.
Built-to-Order Model Helps Toll Brothers (TOL) High Tariffs Garlic
According to the Zacks analyst, the Built-to-Order process allows buyers to customize their home regardless of price, giving Toll Brothers a competitive edge over its peers. Rising mortgage rates hurt.
Suncor (SU) driven by an integrated business model
The Zacks analyst believes Suncor’s integrated business model positions it well to generate strong cash flow. However, the company’s high sensitivity to the price of oil is a concern.
Manageable costs, Barclays (BCS) business restructuring support
According to the Zacks analyst, Barclays’ cost-cutting efforts should continue to contribute to bottom line in the near term. Its efforts to restructure and simplify operations will likely boost finances.
Strong Car Insurance Vertical Drives EverQuote (EVER)
According to the Zacks analyst, EverQuote is expected to grow on strong performance in the auto and other insurance verticals. The increase in consumer traffic and the increase in the volume of quote requests are positives.
Phillips 66 (PSX) banking on more stable midrange activities
The Zacks analyst likes Phillips 66 since the company focuses on more stable midstream operations. The company is also improving its refining performance.
Increased Loss of Cats and High Debt Level Hurt Allstate (ALL)
According to the Zacks analyst, exposure to catastrophic events continues to hurt underwriting profitability. The increase in debt remains a concern as it leads to an increase in interest charges.
Qorvo (QRVO) plagued by weak end-market demand and supply issues
Zacks analyst says Qorvo likely to be plagued by continued weakness in end markets, acute inventory correction, COVID mitigation efforts in China and global supply chain disruptions .
Higher entry costs, currency Ail Element Solutions (ESI)
According to the Zacks analyst, rising raw material and logistics costs will hurt the company’s margins. Adverse currency translation due to a stronger US dollar will also affect its performance.
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JPMorgan Chase & Co. (JPM): Free Stock Analysis Report
Intel Corporation (INTC): Free Inventory Analysis Report
Advanced Micro Devices, Inc. (AMD): Free Inventory Analysis Report
Target Corporation (TGT): Free Stock Analysis Report
Suncor Energy Inc. (SU): Free Inventory Analysis Report
Moderna, Inc. (MRNA): Free Stock Analysis Report
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