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Research Daily

Tuesday, June 6, 2023

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), McDonald's Corporation (MCD) and Comcast Corporation (CMCSA). 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 Chase have outperformed the Zacks Banks - Major Regional industry over the past year (+6.8% vs. -14.3%) reflecting the company's industry-leading status and a well-regarded management team. The company acquired failed First Republic Bank for $10.6 billion, which is expected to be accretive to earnings. The deal adds almost $173 billion in loans and will increase market share among wealthy clients.

Higher rates, global expansion initiatives and a steady loan demand will support net interest income (NII). Yet, the volatile nature of the capital markets business and higher mortgage rates are likely to make fee income growth challenging.

Mounting expenses pose a major headwind, and we anticipate the same to rise 6.8% in 2023. Nevertheless, supported by solid earnings strength, the company will be able to sustain enhanced capital deployments.

(You can read the full research report on JPMorgan Chase here >>>)

McDonald's shares have lagged the
Zacks Retail - Restaurants industry (+14.1% vs. +20.7%), but have handily outperformed the broader market (+14.1% vs. +3.2% for the S&P 500 index). The company’s upside is fueled by strong comps performance, digital initiatives, marketing campaigns and loyalty programs.

McDonald’s is increasing its focus on menu innovation, as it believes that the strengthening of the core menu, solid marketing and improved pricing are likely to pave the way for additional growth in the upcoming periods.

McDonald is also undertaking efforts to drive growth in international markets. Robust digitalization is likely to help the company support long-term growth. Earnings estimates for 2023 have moved north in the past 30 days, depicting analysts’ optimism over the stock’s growth prospects.

(You can read the full research report on McDonald’s here >>>)

Shares of Comcast have outperformed the Zacks Cable Television industry over the past six months (+16.4% vs. +2.6%). The company is benefiting from a growing wireless subscriber base as witnessed in the first quarter of 2023. Broadband user base increased in the reported quarter. Comcast’s plan to transition to DOCSIS 4.0 is noteworthy.

The technology will help it in expanding much faster and at a lower cost compared to competitors. Recovery in park and movie business bodes well for Comcast’s profitability. Its streaming service Peacock is a key catalyst in driving broadband sales. Strong free cash flow generation ability is noteworthy.

However, Comcast persistently suffers from video-subscriber attrition due to cord cutting. Moreover, broadband prospects are suffering from increased competition from fixed wireless as well as fiber. Additionally, a leveraged balance sheet is a major concern.

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

Other noteworthy reports we are featuring today include T-Mobile US, Inc. (TMUS), Amgen Inc. (AMGN) and Marsh & McLennan Companies, Inc. (MMC).

Director of Research

Sheraz Mian

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>>>

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