Thursday, July 30, 2020
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 Corporation (BAC), Intel Corporation (INTC) and The Goldman Sachs Group, Inc. (GS). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Shares of Bank of America have lost -18.7% over the past one-year period against the Zacks Banks - Major Regional industry’s fall of -24.3%. The Zacks analyst believes that a strong balance sheet and liquidity position are expected to support the company's financials amid economic slowdown. In fact, its second-quarter 2020 results showed impressive capital markets performance, partially offset by reserve builds and lower rates.
However, near-zero interest rates are expected to hurt the bank’s margins and interest income. Also, coronavirus-induced concerns will likely continue to hamper business activities. Thus, loan growth is expected to be muted.
Intel shares have declined -5.2% over the past one-year period, in contrast the Zacks Semiconductor - General industry soared +36.0%. The Zacks analyst believes that declining PC total addressable market, and production delays pertaining to 7 nm ramp up remain concerns. Also, coronavirus crisis-led weakness in retail, vison, automotive and industrial end markets is a headwind.
However, solid uptake of 5G networking solutions, higher Wi-Fi and modem sales and solid notebook demand, improvement in NAND pricing trends that led to higher ASPs, and Optane bit growth, remain tailwinds.
Goldman Sachs shares have gained +12.3% over the past three months against the Zacks Financial - Investment Bank industry’s rise of +14.6%. The Zacks analyst believes that the company’s second-quarter 2020 results reflected higher revenues, solid capital position, along with elevated expenses and provisions. Goldman’s solid position in worldwide announced and completed M&As will keep strengthening the business. Also, business diversification and cost management are tailwinds. Moreover, with strong liquidity, the company carries a low credit risk.
Yet, legal issues remain a headwind. In addition, high dependence on overseas revenues and volatile client-activity might impede Goldman's top-line growth.
Other noteworthy reports we are featuring today include The Boeing Company (BA), Intuit Inc. (INTU) and Automatic Data Processing, Inc (ADP).
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Director of Research
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>>>