Today's Must Read
EV Push & Strategic Collaborations to Drive Toyota (TM)
Robust Content Aids Netflix (NFLX) Amid Stiff Competition
Wednesday, January 5, 2022
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 JPMorgan Chase & Co. (JPM), Toyota Motor Corp. (TM), and Netflix, Inc. (NFLX). 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 JPMorgan have underperformed the Zacks Major Regional Banks industry over the past year (+29.9% vs. +36.6%), though things seem to be improving. The Zacks analyst believes that JPMorgan's business diversification efforts, strategic add-on acquisitions, as well as initiatives to expand the branch network in new markets, are the key catalysts for growth.
The opening of new branches and a solid investment banking pipeline will continue supporting JPM’s financials. JPMorgan is also likely to keep enhancing the shareholder value on the back of its impressive capital deployment activities. Lingering low interest rates and normalization of the trading business, however, remain major headwinds.
Toyota shares have gained +19.3% over the past three months against the Zacks Foreign Automotive industry’s gain of +12.7%. The Zacks analyst believes that Toyota’s focus on developing electric as well as driverless cars are likely to boost revenues in the long term.
Toyota projects fiscal 2022 operating income at ¥2.8 trillion, up 27.4% year over year, which is encouraging. TM plans to invest 4 trillion yen ($35 billion) for the development of 30 battery electric vehicles by 2030. The partnership with Hino is in tandem with its goal of producing durable vehicles equipped with cutting-edge technology.
Shares of Netflix have gained +9.1% in the last six months against the Zacks Broadcast Radio and Television industry’s loss of -5.9%. The Zacks analyst believes that Netflix’s growing subscriber base on the back of its content strength, focus on originals across genres and languages, and partnerships with telcos are major tailwinds.
Netflix is dominating the streaming space, which is attributable to heavy investments in the production and distribution of localized, foreign-language content. The launch of low-priced mobile plans is likely to expand Netflix’s subscriber base in Asia/Pacific. Stiff competition in the streaming space, and a leveraged balance sheet are the major concerns for NFLX.
Other noteworthy reports we are featuring today include The Coca-Cola Co. (KO), AbbVie Inc. (ABBV) and Morgan Stanley (MS).
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>>>