Back to top

Image: Bigstock

The Zacks Analyst Blog Highlights: Visa, JPMorgan Chase, Bank of America, Chevron and Eli Lilly

Read MoreHide Full Article

For Immediate Release

Chicago, IL – July 1, 2020 – 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: Visa (V - Free Report) , JPMorgan Chase (JPM - Free Report) , Bank of America (BAC - Free Report) , Chevron (CVX - Free Report) and Eli Lilly (LLY - Free Report) .

Here are highlights from Tuesday’s Analyst Blog:

Top Analyst Reports for Visa, JPMorgan and Bank of America

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 Visa, JPMorgan Chase and Bank of America. 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 >>>

Visa’s shares have outperformed the Zacks Financial Transaction Services industry over the past year (+10.2% vs. +4.2%). The Zacks analyst believes that a number of acquisitions and alliances as well as significant technology upgrades coupled with effective marketing have paved the way for Visa’s long-term growth.

Shift in payments to new methods such as mobile, cards, online and via wearables paves way for long term growth and have led to an increase in payments volume, cross-border volume and processed transactions.

The acquisition of Visa Europe is a growth strategy for the long haul. Its strong cash position enables the company to undertake effective capital deployment measures for its shareholders. However, high operating expenses weigh on its operating margins. Increase in client initiatives will be a drag on the company’s top line. 

JPMorgan share have performed modestly better than the peer group over the past six months (down -32.5% vs. -37.1% for the Zacks Major Banks industry and -5.2% decline for the S&P 500 index), reflecting the company's strong capital position, dividend safety, and an overall well-regarded management team. The Zacks analyst believes that the acquisition of InstaMed, branch openings and focus on credit card business will continue aiding its financials. JPMorgan will be kicking off the June-quarter reporting cycle for the industry before the market's open on July 14th. 

The bank surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters. The company will be maintaining its current dividend payout level in the third quarter following the announcement of annual stress test results. Yet, the Fed’s accommodative policy and near-zero interest rates are expected to hurt the bank’s interest income and margins.

Also, coronavirus-induced concerns will likely continue to hamper business activities. Thus, loan growth will likely be muted in the near term. Challenges in expanding mortgage operations and significant dependence on capital market revenues will hurt fee income growth to an extent.

Bank of America shares have matched the performance of JPMorgan over the past six months, though the stock has lagged the broader market in a major way (-32.7% vs. -5.2% for the S&P 500 index), reflecting the tough operating environment characterized by weak economy and an unfavorable interest rate backdrop. That said, Bank of America is better placed than most of its peers, with opening new branches, improved digital offerings and efforts to manage costs likely to 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.  

Other noteworthy reports we are featuring today include Chevron and Eli Lilly.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>

Media Contact

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 information about the performance numbers displayed in this press release.