We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights JPMorgan Chase, Canadian Pacific Railway, Equinix, Halliburton and Datadog
Read MoreHide Full Article
For Immediate Release
Chicago, IL – November 9, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: JPMorgan Chase & Co. (JPM - Free Report) , Canadian Pacific Railway Limited (CP - Free Report) , Equinix, Inc. (EQIX - Free Report) , Halliburton Company (HAL - Free Report) and Datadog, Inc. (DDOG - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Q3 Earnings Scorecard and Analyst Reports for JPMorgan, Canadian Pacific and Equinix
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time update on the Q3 earnings season and new research reports on 16 major stocks, including JPMorgan Chase & Co., Canadian Pacific Railway Limited and Equinix, Inc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Including all of this morning's results, we now have Q3 earnings reports from 446 S&P 500 members or 89.2% of the index's total membership.
Total earnings for these 446 companies are up +2.3% from the same period last year on +12.6% higher revenues, with 70% beating EPS estimates and 68.2% beating revenue estimates.
The EPS and revenue beats percentages for these 446 index members is below what we had seen from the same group of companies in the last two years and below the 5-year averages, but otherwise within the historical range.
Estimates for the current and coming periods are still coming down. For 2022 Q4, total S&P 500 earnings are currently expected to decline -4.1% from the year-earlier period. This is down from +1.7% on October 7th and +2.5% on August 31st. For more details about the Q3 earnings season, please read our weekly Earnings Preview report here >>> 3 Things We Learned From the Q3 Earnings Season
Today's Featured Analsyt Reports
Shares of JPMorgan Chase have modestly underperformed the Zacks Major Banks industry over the past year (-21.7% vs. -20.8%). The company’s exposure to a weakening economic outlook remains the primary headwind, offsetting the benefits from improved margins as a result of the Fed's tightening cycle. Steadily rising operating expenses remains a key headwind.
Given the possibility of an economic downturn and to meet higher capital requirements, the bank has suspended buybacks. However, opening of new branches, strategic buyouts/investments and global expansion and digitization efforts are likely to keep driving the company’s financials.
Further, higher interest rates and steady growth in loan demand are expected to result in a robust improvement in net interest income (NII). Our estimates for NII (managed) suggest a CAGR of around 19% over the next three years.
Shares of Canadian Pacific Railway have outperformed the Zacks Transportation - Rail industry over the year-to-date period (+7.0% vs. -14.1%). The company expects double-digit RTM- growth in the second half of 2022 leading to volume and earnings growth for the year. The buyout of Kansas City Southern, completed last year, is a huge positive and should aid results in the coming quarters.
With gradual recovery in freight-market conditions, freight revenues, contributing majority to the top line, looks encouraging for the company. Canadian Pacific's efforts to pay out dividends to its shareholders instils investor confidence and positively impact the company's earnings per share.
However, higher operating expenses continue to weigh on the company's bottom line. High debt-to-equity ratio does not bode well and is risky as it implies that the company is aggressively financing its growth with debt. Partly due to these headwinds, the stock has declined in the past year.
Shares of Equinix have underperformed the Zacks REIT and Equity Trust - Retail industry over the past year (-24.0% vs. -19.0%). The company’s huge capital outlay for expansion is a concern as interest rate hikes might adversely impact the borrowing costs to fund these projects. Also, stiff competition from industry peers may lead to aggressive pricing.
The recent estimate revisions trend for 2022 funds from operations (FFO) per share indicates an unfavorable outlook. However, Equinix’s second-quarter results were driven by steady growth in colocation and inter-connection revenues, marking the 78th consecutive quarter of top-line growth.
Its global data-center portfolio is set to gain from the high demand for inter-connected data-center space, given the rise in enterprise cloud adoption and Internet customers’ demand. Equinix focuses on acquisitions and developments to expand its data-center capacity in key markets.
Other noteworthy reports we are featuring today include Halliburton Company and Datadog, Inc.
Why Haven’t You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights JPMorgan Chase, Canadian Pacific Railway, Equinix, Halliburton and Datadog
For Immediate Release
Chicago, IL – November 9, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: JPMorgan Chase & Co. (JPM - Free Report) , Canadian Pacific Railway Limited (CP - Free Report) , Equinix, Inc. (EQIX - Free Report) , Halliburton Company (HAL - Free Report) and Datadog, Inc. (DDOG - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Q3 Earnings Scorecard and Analyst Reports for JPMorgan, Canadian Pacific and Equinix
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time update on the Q3 earnings season and new research reports on 16 major stocks, including JPMorgan Chase & Co., Canadian Pacific Railway Limited and Equinix, Inc. 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 >>>
Q3 Earnings Season Scorecard
Including all of this morning's results, we now have Q3 earnings reports from 446 S&P 500 members or 89.2% of the index's total membership.
Total earnings for these 446 companies are up +2.3% from the same period last year on +12.6% higher revenues, with 70% beating EPS estimates and 68.2% beating revenue estimates.
The EPS and revenue beats percentages for these 446 index members is below what we had seen from the same group of companies in the last two years and below the 5-year averages, but otherwise within the historical range.
Estimates for the current and coming periods are still coming down. For 2022 Q4, total S&P 500 earnings are currently expected to decline -4.1% from the year-earlier period. This is down from +1.7% on October 7th and +2.5% on August 31st. For more details about the Q3 earnings season, please read our weekly Earnings Preview report here >>> 3 Things We Learned From the Q3 Earnings Season
Today's Featured Analsyt Reports
Shares of JPMorgan Chase have modestly underperformed the Zacks Major Banks industry over the past year (-21.7% vs. -20.8%). The company’s exposure to a weakening economic outlook remains the primary headwind, offsetting the benefits from improved margins as a result of the Fed's tightening cycle. Steadily rising operating expenses remains a key headwind.
Given the possibility of an economic downturn and to meet higher capital requirements, the bank has suspended buybacks. However, opening of new branches, strategic buyouts/investments and global expansion and digitization efforts are likely to keep driving the company’s financials.
Further, higher interest rates and steady growth in loan demand are expected to result in a robust improvement in net interest income (NII). Our estimates for NII (managed) suggest a CAGR of around 19% over the next three years.
(You can read the full research report on JPMorgan Chase here >>>)
Shares of Canadian Pacific Railway have outperformed the Zacks Transportation - Rail industry over the year-to-date period (+7.0% vs. -14.1%). The company expects double-digit RTM- growth in the second half of 2022 leading to volume and earnings growth for the year. The buyout of Kansas City Southern, completed last year, is a huge positive and should aid results in the coming quarters.
With gradual recovery in freight-market conditions, freight revenues, contributing majority to the top line, looks encouraging for the company. Canadian Pacific's efforts to pay out dividends to its shareholders instils investor confidence and positively impact the company's earnings per share.
However, higher operating expenses continue to weigh on the company's bottom line. High debt-to-equity ratio does not bode well and is risky as it implies that the company is aggressively financing its growth with debt. Partly due to these headwinds, the stock has declined in the past year.
(You can read the full research report on Canadian Pacific Railway >>>)
Shares of Equinix have underperformed the Zacks REIT and Equity Trust - Retail industry over the past year (-24.0% vs. -19.0%). The company’s huge capital outlay for expansion is a concern as interest rate hikes might adversely impact the borrowing costs to fund these projects. Also, stiff competition from industry peers may lead to aggressive pricing.
The recent estimate revisions trend for 2022 funds from operations (FFO) per share indicates an unfavorable outlook. However, Equinix’s second-quarter results were driven by steady growth in colocation and inter-connection revenues, marking the 78th consecutive quarter of top-line growth.
Its global data-center portfolio is set to gain from the high demand for inter-connected data-center space, given the rise in enterprise cloud adoption and Internet customers’ demand. Equinix focuses on acquisitions and developments to expand its data-center capacity in key markets.
(You can read the full research report on Equinix here >>>)
Other noteworthy reports we are featuring today include Halliburton Company and Datadog, Inc.
Why Haven’t You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.