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The Zacks Analyst Blog Highlights: JPMorgan, Sanofi, General Electric, American Electric Power and Shopify

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For Immediate Release

Chicago, IL – January 8, 2020 – 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) , Sanofi (SNY - Free Report) , General Electric (GE - Free Report) , American Electric Power (AEP - Free Report) and Shopify (SHOP - Free Report) .

Here are highlights from Tuesday’s Analyst Blog:

Top Stock Reports for JPMorgan, Sanofi and General Electric

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, Sanofi andGeneral Electric. 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 over the past year (+37.5% vs. +29.2%). The Zacks analyst believes that decent loan demand, acquisition of InstaMed, opening of new branches and focus on strengthening credit card business will aid financials.

The company has an impressive earnings surprise history. The bank has surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Also, enhanced capital deployment plan reflects strong balance sheet position and will enhance shareholder value. However, the Fed’s accommodative policy will likely hamper top line growth to some extent.

The company’s significant dependence on capital markets revenues makes us apprehensive, given the several geopolitical concerns. Further, the company is likely to face challenges in expanding mortgage operations. Hence, these matters are expected to hamper fee revenue growth.

Shares of Sanofi have gained +13.9% in the past three months against the Zacks Large Cap Pharmaceuticals industry's rise of +13.1%. The Zacks analyst believes that Sanofi’s focus on streamlining operations and pursuing business development deals is encouraging.

The company’s Specialty Care segment is on a strong footing, particularly with regular label expansion of Dupixent. Dupixent is now annualizing at around €2 billion in sales after just around two years in the market and could prove to be key long-term driver. The performance of the Vaccines and Consumer Healthcare franchises also improved of late.

Sanofi’s R&D pipeline is strong and has delivered important results with several positive data read-outs and the achievement of regulatory milestones in 2019. However, headwinds include weak performance of the Diabetes unit, generic competition for many drugs and slower-than-expected uptake of core products like Praluent.

General Electric's shares have gained +19.0% over the past six months against the Zacks Diversified Operations industry's rise of +9.0%. The Zacks analyst believes that the company is poised to gain from its portfolio restructuring program, debt reduction efforts and international commercial presence.

It expects adjusted earnings per share of 55-65 cents for 2019. Healthy business in Aviation, Healthcare and Renewable Energy segments as well as steps to improve the Power segment and asset dispositions in GE Capital are likely to benefit it. However, internal and external challenges weigh on the Power business.

The company expects Power’s organic revenues to decline in a high-single digit in 2019. Also, weak margin in Renewable Energy, forex woes and tariffs might adversely impact its performance. In the past 60 days, the company’s earnings estimates have been lowered for 2020.

Other noteworthy reports we are featuring today include American Electric Power and Shopify.

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