Friday, September 30, 2016
Stocks are up today, as some of the more exaggerated fears surrounding Germany's Deutsche Bank (DE:DBKGn) (DB) have eased in the U.S. session, though worries weighed on Asian markets today. The German lender has been in the eye of the storm in recent days in the wake of U.S. Justice Department's reported penalty of $14 billion to settle mortgage related issues. Deustche Bank's thin capital cushion in the face of such a hit has put a spotlight on the weak capital positions of other European lenders a well.
In line with the market's Deustche Bank fixation, Research Daily today is featuring the industry stalwart JPMorgan (NYSE:JPM). Other key reports today include Marriott (MAR), India's Infosys (INFY), and IBM (NYSE:IBM).
JPMorgan shares have lagged the broader market this year, but they have nevertheless done better than the space as whole given its well-earned reputation for quality management, capital strength and operational excellence. It has been a tough period for banks as a whole given the Fed-inspired interest rate backdrop that has been weighing on the group's margins. JPMorgan has done better than others in navigating this environment, through a combination of cost-containment efforts and gains in the loan portfolio. The analysts expects these elements to show up in the bank's Q3 earnings report, which comes out before the market's open on October 14th. JPMorgan is expected to earn $1.37 on $23.96 billion in revenues in Q3, which would compare to $1.32 on $22.78 billion in revenues in the year-earlier period. (You can read the full research report on JPMorgan here>>)
Marriott’s recent completion of the Starwood purchase is expected to be a key positive in the long run, but the Zacks analyst identifies a number of near-term challenges that could weigh on the stock. These include asset sales and all aspects of integrating different parts of the units like loyalty programs. The steadily improving economy and favorable outlook for business and leisure travel should help the company. In the updated research report published today, the Zacks analyst discusses the pros & cons of investing in Marriott shares at present. (You can read the full research report on Marriott here>>)
India-based Infosys shares have struggled lately (the stock is down more than 5% year-to-date), despite the favorable growth outlook for the Indian economy. The company continues to do a decent job in its traditional core IT areas, but appears to have lagged its peers in the U.S. in the higher-end analytics and big-data type of work. The tough global spending environment of companies hesitating on technology and services isn't helping consulting firms like Infosys either. The Zacks analyst discusses the company's ability maintain existing clients and add new ones, but cites seasonality factors and competitive pressures as near-term concerns. (You can read the full research report on Infosys here>>)
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Today's Must Read
Featured Reports
NuStar Energy's (NS) Stable Cash Flows Lower Commodity Risk
NuStar Energy's fee-based transportation and storage assets make it less susceptible to commodity price weakness.
Spirit Airlines' (SAVE) Expansion Efforts Impress
The Zacks analyst is positive on the approval gained by the company to fly to Havana and other expansion initiatives.
Wynn Resorts (WYNN) Looks to Sustain Macau Performance
Wynn is likely to maintain its revenue performance through the Wynn Palace opening, per the Zacks analyst.
Total System's (TSS) Growing Inorganically
Total System's inorganic growth via alliances and acquisitions along with its organic growth remains strong.
Range Resources' (NYSE:RRC) Gains From Memorial Acquisition
The Zacks analyst believes Range access to Terryville field following the merger with Memorial is a positive.
Shutterfly (SFLY) Strong on Strategic Initiatives
Shutterfly's acquisitions and enhanced offerings in mobile e-Commerce should continue to boost revenues.
New Upgrades
FactSet (FDS) to Grow on New Products & Buyouts, Risks Remain
Though FactSet provided weak outlook for the forthcoming quarter, the Zacks analyst thinks its sustained focus on product innovation and buyouts will help it to grow despite macroeconomic challenges.
Strong Growth in Harsh Environment Unit Drives TE Connectivity (TEL)
The Zacks analyst believes that robust growth in harsh environment and SubCom businesses, coupled with productivity improvements, will continue to drive growth for TE Connectivity.
New Downgrades
IBM's (IBM) Cloud Growth Hurt by Intensifying Competition
Per the Zacks analyst, IBM's revenues are likely to remain affected in the near term due to the intensifying competition in cloud computing and data analytics market.
Campbell (CPB) in Soup as Currency Woes Continue to Hurt
Per the Zacks analysts, Campbell remains prone to currency fluctuations due to its exposure to the international markets. Also, the recent weakness in organic sales is expected to remain a hurdle.
MARRIOTT INTL-A (MAR): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
INFOSYS LTD (INFY): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis Report
DEUTSCHE BK AG (DB): Free Stock Analysis Report
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