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Research Daily

Thursday, October 10, 2019

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 JPMorganChase (JPM), CME Group (CME) and Chubb (CB). 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 >>>

JPMorgan’s shares have outperformed the Zacks Major Regional Banks industry year to date (15.4% vs. 12.8%). The Zacks analyst believes that improving loan balance, opening branches in new regions and focus on strengthening credit card business will support financials.

Acquisition of InstaMed will help the company reach U.S. healthcare payments market. Also, enhanced capital deployment plan reflects a strong balance sheet position and will enhance shareholder value. However, weak mortgage banking performance, mainly due to lower origination volume and rise in competition is a near-term concern.

Further, the company’s significant dependence on capital markets revenues makes us apprehensive. These concerns are expected to hamper fee revenue growth to some extent.

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

Shares of CME Group have gained 26.1% in the past six months, outperforming the Zacks Securities and Exchanges industry’s rise of 24.3%. The Zacks analyst believes that CME Group remains well poised for growth on a strong market position driven by varied derivative product lines.

Efforts to expand and cross sell through strategic alliances, acquisitions, new product initiatives and a stable global presence bode well. Product innovation and a growing proportion of volume from customers outside the United States have been aiding results. Its options business too gained traction. The company intends to focus more on over-the-counter clearing services.

However, diversified product portfolio is significantly exposed to extreme interest rate volatility, currency fluctuations, firm government regulations and limited credit availability in the current unstable capital and credit markets. Also, escalating expenses remain a concern.

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

Chubb’s shares have gained 5.4% over the past three months compared with the Zacks Property, Casualty and Title industry’s decline of 2.8%. The Zacks analyst believes that the company's inorganic growth story is impressive, helping it to achieve a higher long-term return on equity. Increased scales, efficiencies and a solid balance sheet lend a competitive edge.

Chubb estimates solid growth in Overseas General operations (both commercial and consumer lines). Growth in invested assets and solid cash flows drive net investment income. A strong capital position helps it to boost shareholders’ value and invest in strategic growth initiatives.

However, exposure to catastrophe loss remains a concern as it induces volatility in underwriting profitability. Also, mounting expenses weigh on margin expansion. A high debt level and lower times interest earned are concerns.

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

Other noteworthy reports we are featuring today include Enbridge (ENB), S&P Global (SPGI) and Ford Motor (F).

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Mark Vickery
Senior Editor

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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