Today's Must Read
New Branches, Acquisitions Aid JPMorgan (JPM) Amid Low Rates
Oracle (ORCL) Benefits from Strong Uptake of Cloud Solutions
Tuesday, September 28, 2021
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 Tesla, Inc. (TSLA), JPMorgan Chase & Co. (JPM), and Oracle Corporation (ORCL). 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 >>>
Shares of Tesla have handily outperformed the Zacks Domestic Automotive industry over the past year (+85.6% vs. +46.8%) on the back of increasing automotive revenues as well as energy generation and storage revenues.
Rising Model 3/Y delivery has also been aiding the company’s growth. Its Shanghai operations are likely to boost revenues further, capitalizing on China’s huge EV market. Construction of Berlin and Texas gigafactories are well on track, with production expected to commence this year. The company’s high research and development (R&D) as well as selling, general and administrative (SG&A) costs are major concerns though.
JPMorgan shares have gained +9% in the last three months against the Zacks Major Regional Banks industry’s gain of +7.2%. The Zacks analyst believes that JPMorgan's robust loan and deposit balances, strategic acquisitions, as well as the initiatives to expand the branch network in new markets will keep supporting its profitability.
Its earnings strength and a solid balance sheet is likely to enhance shareholder value. Despite the economic recovery, pandemic-related woes continue to weigh on the company’s prospects. Near-zero interest rates, fee income growth challenges and mounting costs are some of the other major headwinds that keep might weigh on JPMorgan’s revenue growth in the near term.
Shares of Oracle have gained +43.5% in the year to date period against the Zacks Computer Software industry’s gain of +29.2%. The Zacks analyst believes that Oracle’s growing cloud business and its latest autonomous database bodes well for the long term.
The company's software-as-a-service (SaaS), infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) products are likely to grow strongly over the next few years as enterprises increasingly transition to the cloud. Sturdy demand for the Oracle Dedicated Region Cloud@Customer is also anticipated to drive the top line. Stiff competition, lawsuits as well as high integration risks are likely to impact Oracle though.
Other noteworthy reports we are featuring today include The Coca-Cola Company (KO), Amgen Inc. (AMGN) and Lam Research Corporation (LRCX).
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>>>