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: Bank of America, PepsiCo, Union Pacific, Caterpillar and Mondelez
Read MoreHide Full Article
For Immediate Release
Chicago, IL – January 7, 2019 – 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: Bank of America (BAC - Free Report) , PepsiCo (PEP - Free Report) , Union Pacific (UNP - Free Report) , Caterpillar (CAT - Free Report) and Mondelez (MDLZ - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Top Stock Reports for Bank of America, PepsiCo and Union Pacific
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 Bank of America, PepsiCo and Union Pacific. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Bank of America’s shares have outperformed the Zacks Major Regional Banks over the past six months, losing -12% vs. -13.4%. Also, the company possesses an impressive earnings surprise history, beating expectations in each of the trailing four quarters.
Earnings estimates have remained stable ahead of the company's fourth quarter 2018 results. The Zacks analyst thinks rise in loan and deposit balances, higher interest rates, expansion into new markets and efforts to manage expenses are likely to support profitability. Also, lower tax rates and a strong balance sheet position will aid growth.
However, fall in mortgage banking income due to lower volumes and a decline in refinancing activity along with uncertainty related to performance of capital markets remain major concerns. These are expected to hurt the bank's revenues to some extent.
Shares of PepsiCo have lost -8.8% in the past year, outperforming the Zacks Soft Beverages industry's decline of -15.2%, due to its robust surprise trend. Earnings topped estimates in the last 11 quarters, while it delivered positive sales surprise in five of the last seven quarters.
The improvement is mainly attributable to strong performances in international divisions, propelled by higher revenue growth in developing and emerging markets. Also, the company’s solid snacks division is boosting the performance.
However, PepsiCo is witnessing strained margins for quite some time due to operating and commodity cost inflation, including higher transportation costs and stepped-up advertising expense. This trend is likely to continue, going ahead.
Additionally, consumers’ awareness on health and wellness, alongside new taxes on sugar-sweetened beverages and growing regulatory pressures are affecting CSD sales, which has caused sluggishness in beverage category.
Union Pacific’s shares have outperformed the Zacks Rail industry (-3.6% vs. -6%) in the past year. The Zacks analyst expects Union Pacific's fourth-quarter 2018 results, scheduled to be unveiled on Jan 24, to be hurt by high operating expenses.
Despite the current downtrend in oil prices, fuel costs are likely to limit bottom-line growth in the fourth quarter. Declining coal volumes might also hurt results. At a presentation in November, the company stated that fourth-quarter volumes in the energy unit had declined 10% as of Nov 25.
Pricing pressures in coal and international intermodal markets are acting as a major headwind. The company's high debt levels are additional concerns. However, the upbeat freight scenario is a positive as Union Pacific derives bulk of its revenues from this source. The company's efforts to reward its shareholders is another cause for optimism.
Other noteworthy reports we are featuring today include Caterpillar and Mondelez.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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 http://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: Bank of America, PepsiCo, Union Pacific, Caterpillar and Mondelez
For Immediate Release
Chicago, IL – January 7, 2019 – 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: Bank of America (BAC - Free Report) , PepsiCo (PEP - Free Report) , Union Pacific (UNP - Free Report) , Caterpillar (CAT - Free Report) and Mondelez (MDLZ - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Top Stock Reports for Bank of America, PepsiCo and Union Pacific
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 Bank of America, PepsiCo and Union Pacific. 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 >>>
Bank of America’s shares have outperformed the Zacks Major Regional Banks over the past six months, losing -12% vs. -13.4%. Also, the company possesses an impressive earnings surprise history, beating expectations in each of the trailing four quarters.
Earnings estimates have remained stable ahead of the company's fourth quarter 2018 results. The Zacks analyst thinks rise in loan and deposit balances, higher interest rates, expansion into new markets and efforts to manage expenses are likely to support profitability. Also, lower tax rates and a strong balance sheet position will aid growth.
However, fall in mortgage banking income due to lower volumes and a decline in refinancing activity along with uncertainty related to performance of capital markets remain major concerns. These are expected to hurt the bank's revenues to some extent.
Shares of PepsiCo have lost -8.8% in the past year, outperforming the Zacks Soft Beverages industry's decline of -15.2%, due to its robust surprise trend. Earnings topped estimates in the last 11 quarters, while it delivered positive sales surprise in five of the last seven quarters.
The improvement is mainly attributable to strong performances in international divisions, propelled by higher revenue growth in developing and emerging markets. Also, the company’s solid snacks division is boosting the performance.
However, PepsiCo is witnessing strained margins for quite some time due to operating and commodity cost inflation, including higher transportation costs and stepped-up advertising expense. This trend is likely to continue, going ahead.
Additionally, consumers’ awareness on health and wellness, alongside new taxes on sugar-sweetened beverages and growing regulatory pressures are affecting CSD sales, which has caused sluggishness in beverage category.
Union Pacific’s shares have outperformed the Zacks Rail industry (-3.6% vs. -6%) in the past year. The Zacks analyst expects Union Pacific's fourth-quarter 2018 results, scheduled to be unveiled on Jan 24, to be hurt by high operating expenses.
Despite the current downtrend in oil prices, fuel costs are likely to limit bottom-line growth in the fourth quarter. Declining coal volumes might also hurt results. At a presentation in November, the company stated that fourth-quarter volumes in the energy unit had declined 10% as of Nov 25.
Pricing pressures in coal and international intermodal markets are acting as a major headwind. The company's high debt levels are additional concerns. However, the upbeat freight scenario is a positive as Union Pacific derives bulk of its revenues from this source. The company's efforts to reward its shareholders is another cause for optimism.
Other noteworthy reports we are featuring today include Caterpillar and Mondelez.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.