Today's Must Read
Loan Demand, Cost Management Aid BofA (BAC) Amid Low Rates
Greenwich Buyout Aids S&P Global (SPGI) Amid Rising Expenses
Thursday, December 16, 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 Alphabet Inc. (GOOGL), Bank of America Corp. (BAC), and S&P Global Inc. (SPGI). 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 Alphabet have outperformed the S&P 500 over the past year (+67.7% vs. +28.9%). The Zacks analyst believes that Alphabet’s dominant position in the search market, an expanding cloud footprint and a strengthening presence in the smart home market are some of the major tailwinds.
Major updates in GOOGL’s search segment are enhancing the search results. Google’s mobile search has also been gaining solid momentum. Focus on innovation of AI techniques and the home automation space is likely to aid business growth in the long term. GOOGL’s deepening focus on its wearables category is a major positive.
Bank of America shares have gained +48.9% in the year to date period against the Zacks Major Regional Banks industry’s gain of +34.5%. The Zacks analyst believes that Bank of America’s efforts to improve revenue growth, strong balance sheet, and expansion into new markets will support Bank of America.
Technological advancement is likely to continue aiding cross selling opportunities. Opening of new branches, enhancing digital capabilities and initiatives to manage expenses along with a strong balance sheet and liquidity position should aid its financials. The bank’s dependence on the volatile nature of the trading revenues for fee income growth is a concern though.
Shares of S&P Global have gained +20.3% in the last six months against the Zacks Business - Information Services industry’s gain of +4.2%. The Zacks analyst believes that acquisitions enable S&P Global to innovate, increase differentiated content and develop new products.
SPGI remains well poised to gain from the growing demand for business information services. Effective management execution has helped it generate solid cash flow to be utilized for growth initiatives. S&P Global, however, remains vulnerable to proceedings, investigations and inquiries with respect to the ratings provided, leading to legal charges, damages or fines.
Other noteworthy reports we are featuring today include ServiceNow, Inc. (NOW), The Boeing Co. (BA) and The Southern Co. (SO).
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>>>