Thursday, August 25, 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 Bank of America Corporation (BAC), Toyota Motor Corporation (TM) and AT&T Inc. (T). 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 shares have declined -15.3% over the past year against the Zacks Banks - Major Regional industry’s decline of -16.7% and both lagging the broader market's decline of -8.5%. The outlook for Bank of America and its peers has been clouded by the ongoing macroeconomic uncertainty characterized by the Fed tightening cycle that has raised recessionary risks.  

However, the opening of new financial centers, enhancement in digital capabilities and expense-saving efforts are expected to keep aiding the company’s financials.

Moreover, supported by robust loan growth, Bank of America's top line is expected to improve. Given the recent rise in interest rates, Bank of America is expected to witness growth in margins in the near term.

(You can read the full research report on Bank of America here >>>)

Toyota Motor shares have declined -9.6% over the past year against the Zacks Automotive - Foreign industry’s decline of -28.0%. Toyota is faced with a number of near-term challenges like the chip crunch compounded by the Russia-Ukraine war and inflationary pressures weighing on margins, the company is better placed to face these headwinds than its peers. 

Toyota’s massive electrification push including investment in all-electric, hybrids and fuel-cell vehicles is set to bolster prospects. It aims to generate 40% of its global sales from EVs by 2025 and 70% by 2030.

The Japanese auto giant forecasts a year-over-year growth in sales volume and revenues for the current fiscal year. The expanding portfolio of product lines, a robust lineup of trucks and SUVs, partnerships with Hino and Subaru and Mazda will steer long-term growth

(You can read the full research report on Toyota Motor here >>>)

AT&T shares have declined -7.2% over the past year, roughly in line with the Zacks Wireless National industry’s decline of -7.8%. The company is struggling with a steady decline in its legacy telephony Internet and wireline services. High-speed Internet revenues are also contracting due to a decline in the legacy digital subscriber line. With the divesture of WarnerMedia, AT&T must build upon its core businesses to improve its value proposition as spectrum crisis and cord-cutting remain challenges.

However, AT&T is witnessing solid subscriber momentum. A customer centric business model, is providing the company with healthy growth in its postpaid wireless business alongside a lower churn rate and higher-tier unlimited plans.

The company is actively investing in key areas of 5G and fiber and adjusting its business according to the evolving market scenario to fuel long-term growth. While optimizing operations, it is aiming to increase efficiencies to lower operating costs.

(You can read the full research report on AT&T here >>>)

Other noteworthy reports we are featuring today include The Home Depot, Inc. (HD), Zoetis Inc. (ZTS), and Occidental Petroleum Corporation (OXY).

Sheraz Mian
 
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>>>