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The Zacks Analyst Blog Highlights: Amazon.com, Bank of America, Lockheed Martin, Alphabet and Charles Schwab

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For Immediate Release

Chicago, IL – June 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: Amazon.com (AMZN - Free Report) , Bank of America (BAC - Free Report) , Lockheed Martin (LMT - Free Report) , Alphabet (GOOGL - Free Report) and Charles Schwab (SCHW - Free Report) .

Here are highlights from Friday’s Analyst Blog:

Top Research Reports for Amazon, Bank of America and Lockheed Martin

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 Amazon.com, Bank of America and Lockheed Martin. 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 >>>

Amazon’s shares have outperformed the broader market over the past year (+40.3% vs. +9.5%). The Zacks analyst believes that Amazon is gaining on robust AWS services. Strong adoption rate of AWS is aiding its cloud dominance.

Further, AWS is gaining solid traction among healthcare workers, medical researchers, educational institutions and government organizations owing to coronavirus management measures. Further, Prime momentum owing to fast delivery services and strong content portfolio is benefiting Amazon.

Also, expanding distribution strength and workforce which are helping in addressing the overflowing online orders during this pandemic are major positives. Furthermore, robust Alexa skills and strong smart home product offerings are tailwinds. However, growing coronavirus related expenses might hurt Amazon’s profitability. Also, foreign exchange headwinds and rising cloud competition are risks.

Shares of Bank of America have lost -20.4% over the past six months against the Zacks Major Regional Banks industry’s fall of -26.3%. The Zacks analyst believes that opening new branches, improved digital offerings and efforts to manage costs will likely aid profitability.

Additionally, strong balance sheet and liquidity position are expected to continue supporting the company's financials amid economic slowdown. However, near-zero interest rates are expected to hurt the bank’s margins and interest income.

Also, coronavirus-induced concerns will likely continue to hamper business activities and thus, loan growth is expected to be muted. Further, dependence on capital markets performance makes us apprehensive, given its cyclical nature. This is likely to hurt fee income growth to some extent

Lockheed Martin’s shares have gained +5.5% over the past three months against the Zacks Aerospace Defense industry’s fall of -9.4%. The Zacks analyst believes that expansionary budgetary provisions made by the current U.S. administration will immensely boost this defense prime's business. It continues to be a strong cash generator.

Lockheed Martin enjoys strong demand for its high-end military equipment in domestic and international markets, being the world’s largest defense contractor. However, Lockheed Martin faces intense global competition for its broad portfolio of products and services.

Furthermore, forced cost reduction initiatives for the F-35 program might hamper its operating results. America and Turkey’s tiff on the later accepting Russian products may hurt Lockheed’s component supply from Turkey. It is also facing performance issues in relation to some of its products, which in turn may hurt its results.  

Other noteworthy reports we are featuring today include Alphabet and Charles Schwab.

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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/performancefor information about the performance numbers displayed in this press release.

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