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Research Daily

Sheraz Mian

Top Research Reports for Bank of America, AMD & Caterpillar


Trades from $3

Wednesday, June 5, 2024

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), Advanced Micro Devices, Inc. (AMD) and Caterpillar Inc. (CAT), as well as a micro-cap stock Weyco Group, Inc. (WEYS).  The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.

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 outperformed the Zacks Banks - Major Regional industry over the past six months (+30.9% vs. +26.0%). While higher funding costs remain a drag, the company’s net interest income (NII) will benefit from the current high-rate regime. Given its status as a major money-center financial player, the company is also well positioned for the improving macroeconomic backdrop.

The opening of financial centers in new and existing markets and improved digital capabilities will support the top line. While the capital markets activity improved of late, the challenging macroeconomic environment might once again weigh on the investment banking (IB) business.

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

Shares of AMD have outperformed the Zacks Electronics - Semiconductors industry over the past six months (+37% vs. +35.7%). The company is benefiting from portfolio strength and an expanding partner base. Data Center revenues benefited from the strong adoption of AMD Instinct MI300X GPUs and a double-digit percentage increase in CPU sales.

In cloud, server CPU revenues increased year over year and sequentially as North American hyperscalers expanded fourth Gen EPYC Processor deployments to power their internal workloads and public instances. Exiting first-quarter 2024, AMD had more than 900 public cloud instances available, with Amazon, Google and Microsoft increasing their usage fourth-gen EPYC processor offerings with new instances and regional deployments.

Microsoft, Meta, Oracle and other cloud providers announced further MI300X deployments in the reported quarter. However, weakness in the Gaming and the Embedded businesses remains a headwind.

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

Caterpillar shares have outperformed the Zacks Manufacturing - Construction and Mining industry over the past six months (+30.4% vs. +26.6%). The company’s earnings have increased year over year for thirteen straight quarters aided by cost-saving measures, strong demand and pricing actions. These factors mitigated the impact of the industry-wide supply-chain snarls and cost pressures.

The Construction Industries segment will gain from the increased construction activities in the United States and globally. The mining sector will be bolstered by commodity demand driven by the energy transition trend, which, in turn, will support the Resource Industries segment.

The Energy & Transportation segment is well-positioned for growth, backed by strong demand across all applications. Its dividend yield and payout ratio are higher than its peers. A solid liquidity position and investments in expanding services and digital initiatives will help Caterpillar deliver exceptional returns.

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

Shares of Weyco have outperformed the Zacks Shoes and Retail Apparel industry over the past six months (+7% vs. -13.2%). This microcap company with market capitalization of $290.22 million stands to benefit from growth in the global footwear industry, driven by trends such as rising disposable incomes, urbanization, and e-commerce.

The company’s Retail segment saw record Q1 sales, mainly due to strong e-commerce performance, highlighting effective online strategies. Improved gross margins, reaching 44.7% in Q1 2024, showcase efficient cost management. Weyco's focus on core brands and innovation in casual and outdoor footwear aligns with market demand. Weyco holds $84.7 million in cash and marketable securities, supporting flexibility and consistent dividends.

However, its Q1 net sales dropped by 17%, affected by lower North American wholesale demand and a 26% decline in overseas sales. Inflation, economic slowdowns, and market saturation pose additional risks. Dependence on key accounts threatens revenue stability.

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

Other noteworthy reports we are featuring today include Anheuser-Busch InBev SA/NV (BUD), General Dynamics Corporation (GD) and Williams-Sonoma, Inc. (WSM).

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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