For Immediate Release
Chicago, IL –July 3, 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 Bank of America (BAC - Free Report) , Wells Fargo (WFC - Free Report) and Honeywell (HON - Free Report) , Allergan (AGN - Free Report) and Enterprise Products Partners (EPD - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Top Research Reports for Bank of America, Wells Fargo and Honeywell
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, Wells Fargo and Honeywell. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Bank of America’s shares have outperformed the Zacks Major Regional Banks industry over the last six months, losing -5.4% vs. -6%. Also, the company possesses an impressive earnings surprise history, beating expectations in each of the trailing four quarters.
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. Lower tax rates and easing of banking regulations will aid growth.
Further, approval of its capital plan reflects strong balance sheet position. However, 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.
Shares of Wells Fargo have underperformed the Zacks Major Banks industry over the last six months (-9.9% vs. -5.9%). The company possesses a decent earnings surprise history, having beaten expectations in two of the trailing four quarters.
Recently, the bank received the judge’s final approval for the settlement of $142 million worth class-action lawsuit related to the 3.5 million fake accounts scandal. Also, Wells Fargo was slapped with new sanctions, including a cap on the assets position by the Federal Reserve.
Though lower tax rate, easing of regulations and expansions will likely support the bank’s growth profile, the crisis related to the revelation of illegally opening millions of illegal accounts in 2016 will take some time to alleviate. Moreover, rising rates are expected to aid net interest income. Furthermore, the recent 2018 capital plan approval boosts investors' confidence.
Buy-ranked Honeywell’s shares have outperformed the Zacks Diversified Operations industry in the last one year, increasing +7.7% vs. a -16.4% decline. The Zacks analyst thinks Honeywell’s diversified business portfolio has the potential to earn consistent above-average returns and mitigate operating risks.
The company’s diligent focus on working capital management, free cash flow generation and a conservative balance sheet are encouraging amid a challenging macroeconomic environment. With a flexible yet disciplined focus on cost and productivity, Honeywell remains focused on increasing its presence in high-growth regions.
Additionally, the company’s balanced mix of long- and short-cycle businesses along with a decent organic growth in new products and expansion in high-growth regions auger well on a long-term perspective.
Other noteworthy reports we are featuring today include Allergan and Enterprise Products Partners.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Zacks Investment Research
800-767-3771 ext. 9339
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.