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The Zacks Analyst Blog Highlights: JPMorgan, Starbucks, Morgan Stanley, Twitter and IBM

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For Immediate Release

Chicago, IL –May 31, 2019 – 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: JPMorgan (JPM - Free Report) , Starbucks (SBUX - Free Report) , Morgan Stanley (MS - Free Report) , Twitter and IBM (IBM - Free Report) .

Here are highlights from Thursday’s Analyst Blog:

Top Research Reports for JPMorgan, Starbucks and Morgan Stanley

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, Starbucks and Morgan Stanley. 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 >>>

Neutral-rated JPMorgan’s shares have lost -2.2% in the past six months, outperforming the Zacks Major Regional Banks industry’s decline of -6.6%. The bank has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters.

The Zacks analyst thinks higher rates, improving loan balance, expansion into new markets via new branch openings and focus on strengthening credit card business will support the company’s revenues. Expanding its reach into lucrative U.S. healthcare payments market with a deal to acquire InstaMed will go a long way in supporting profitability.

However, dismal mortgage banking performance, mainly due to lower origination volume and increase in competition, is expected to continue hampering fee income growth. The company's excessive dependence on capital markets revenues is a cause for concern and is expected to hamper revenue growth.

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

Shares of Neutral-rated Starbucks are up +12.8% over the past six months, outperforming the Zacks Food & Restaurants industry, which is up +7.3% over the same period. The Zacks analyst thinks the momentum is likely to continue as the company reported solid second-quarter fiscal 2019 earnings and raised its full-year view.

Notably, earnings surpassed expectations in all of the trailing four quarters. Robust Americas and CAP comps also bode well. Meanwhile, Starbucks' business is rapidly growing in China, courtesy of innovative store designs, local product innovations and the success of MSR program. Operating fundamentals such as solid global footprint, successful innovations, best-in-class loyalty program and digital offerings are major positives.

Again, digital initiatives like mobile order/pay and delivery services can stimulate robust sales further. However, the operating margin contraction over the past few quarters has been a major concern.

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

Neutral-rated Morgan Stanley’s shares have lost -5.4% over the past six months, outperforming the Zacks Investment Banking industry, which has declined -7.2% over the same period. The company possesses an impressive earnings surprise history. Its earnings have surpassed expectations in three of the trailing four quarters.

The Zacks analyst thinks the acquisition of Solium Capital is in sync with the company’s efforts to strengthen its wealth management business. Moreover, focus on the corporate lending unit, steady loan growth, higher interest rates and normalized levels of trading activities will likely aid revenue growth going forward.

Its steady capital deployment activities indicate a strong liquidity position. However, a slowdown in debt originations will likely hinder underwriting fee income growth and hurt the company’s investment banking performance. Elevated operating expenses are likely to hurt profits.

(You can read the full research report on Morgan Stanley here >>>).

Other noteworthy reports we are featuring today include Twitter and IBM.

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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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