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The Zacks Analyst Blog Highlights: Nike, Bank of America, Chubb, DISH and Ameren

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For Immediate Release

Chicago, IL – May 30, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Nike (NKE - Free Report) , Bank of America (BAC - Free Report) , Chubb (CB - Free Report) , DISH Network (DISH - Free Report) and Ameren (AEE - Free Report) .

Here are highlights from Tuesday’s Analyst Blog:

Top Research Reports for Nike, Bank of America and Chubb

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 Nike, Bank of America and Chubb. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

Nike’s shares have outperformed the Zacks Shoes and Retail Apparel industry over the last six months (+19.5% vs. +17.3%), driven by strength in international business and the global NIKE Direct business which has been aiding its quarterly performance. Notably, the company delivered top- and bottom-line beat in third-quarter fiscal 2018 which also marked the 23rd straight earnings beat.

Nike closed the third quarter with expectations of a trend reversal in its North America business in the fourth quarter, backed by the introduction of new innovation platforms and differentiated customer experiences in the marketplace. Consequently, it provided robust guidance for fourth-quarter fiscal 2018 and initial view for fiscal 2019. However, its higher SG&A expenses are likely to continue hurting results in the fourth quarter.

Bank of America’s shares have outperformed the Zacks Major Regional Banks industry over the last six months, gaining +7% vs. +1.6%. The company possesses an impressive earnings surprise history, beating expectations in each of the trailing four quarters. Its first quarter 2018 results benefited from higher rates, increase in equity trading income and lower expenses.

The Zacks analyst thinks increase in loan and deposit balances, rising interest rates, and efforts to manage expenses as well as expand into new markets will support profitability. However, a fall in mortgage banking income due to lower volumes and a decline in refinancing activity along with uncertainty related to performance of capital markets remain major concerns. These are expected to hurt the bank's revenues to some extent.

Chubb’s shares have lost -12.2% over the past six months, underperforming the Zacks Property, Casualty and Title industry, which has declined -0.2% over the same period. Chubb’s first-quarter 2018 earnings beat expectations but deteriorated year over year on higher catastrophe loss.

However, Chubb stands a good chance of leading the P&C space, benefiting from compelling products as well as services. The company’s inorganic growth story is impressive, helping it achieve a higher long-term ROE. Increased scales, efficiencies and a solid balance sheet will give Chubb a competitive edge. A strong capital position aids Chubb to boost shareholders’ value and invest in strategic initiatives to drive growth.

The company is on track to achieve annual run-rate integration-related savings of $875 million by the end of 2018. But, exposure to cat loss induces volatility in underwriting profitability. Escalating expenses too weigh on margin expansion.

Other noteworthy reports we are featuring today include DISH Network and Ameren.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.



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