Top Research Reports for Amazon, Bank of America & Comcast

Thursday, December 19, 2019

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 (AMZN), Bank of America (BAC) and Comcast (CMCSA). 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 underperformed the S&P 500 year to date (+18.8% vs. +26%). The Zacks analyst believes that Amazon is benefiting from its aggressive retail strategies, distribution strength and robust Prime program.

Rapid adoption of Prime driven by customer benefits and strengthening grocery services is aiding its top line. Also, expanding content portfolio is encouraging Prime membership. Further, strengthening AWS services and its growing adoption rate are aiding Amazon’s dominance in the cloud space. Furthermore, improving Alexa skills and features remain major positives.

Also, rising number of Alexa compatible devices is a tailwind. However, rising transportation cost related to its free one-day shipping service remains an overhang and is likely to increase further. Also, Amazon expects foreign exchange headwinds to continue impacting its top line.

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

Shares of Bank of America have gained +18.7% in the past three months against the Zacks Major Regional Banks industry’s rise of +6.9%. The Zacks analyst believes that opening branches in new regions, improved digital offerings, decent loan growth and efforts to control costs will aid profitability despite the Fed’s accommodative monetary policy stance.

Bank of America's shares have outperformed the industry over the past year. The bank's earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters. Also, efforts to focus more on consumer banking business have started bearing fruits. The company's enhanced capital deployment actions reflect a strong balance sheet position.

However, dismal performance of capital markets continues to hurt the company’s investment banking and trading businesses, which in turn will hamper fee income growth. Litigation issues related to its business misconducts in the pre-crisis period are likely to lead to higher legal costs.

(You can read the full research report on Bank of America here >>>)

Comcast's shares have lost -1.1% over the past six months against the Zacks Cable Television industry's rise of +8%. The Zacks analyst believes that Comcast is benefiting from solid growth in a number of residential and business services high-speed Internet customers.

The company’s strategy of providing high-speed Internet at an affordable cost plays a key role in improving customer experience. Growing popularity of Xfinity products is also a key catalyst. Moreover, expansion in the wireless user base and the security and automation services customer base is a growth driver.

Additionally, Sky’s content strength is expected to drive the subscriber base in Europe. Further, increasing digital video sales hold promise. However, Comcast continues to lose video subscribers due to cord cutting. Moreover, a high debt level is a headwind.

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

Other noteworthy reports we are featuring today include Netflix (NFLX), IBM (IBM) and Altria Group (MO).

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Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

Amazon (AMZN) Banks on Prime Momentum & Growing AWS Adoption

New Branches, Loan Growth Aid BofA (BAC), Lower Rates a Woe

High Speed Internet Subscriber Gain Benefits Comcast (CMCSA)

Featured Reports

Robust Content to Aid Netflix (NFLX) Amid Stiff Competition

Per the Zacks analyst, Netflix's robust content portfolio is expected to aid subscriber addition despite increasing competition from the likes of Disney, Apple and Comcast in the streaming space.

Robust Adoption of Cloud Solutions Aids IBM Amid High Debt

Per the Zacks analyst, IBM's blockchain, cloud and ML capabilities, among others poises its offerings well to gain robust adoption.

Smokeless Unit Aids Altria (MO), Soft Cigarette Volumes Hurt

Per the Zacks analyst, Altria is benefitting from strong smokeless product sales, which grew 5.8% in the third quarter.

Strategic Initiatives Aid Anthem (ANTM), Rising Costs Hurt

Per the Zacks analyst, a number of acquisitions and collaborations have helped it enhance its capabilities and boost its Medicare business.

Acquisitions Aid Mitsubishi UFJ (MUFG), High Expenses A Woe

Per the Zacks analyst, Mitsubishi UFJ has been growing through acquisitions and focus on its business upgradation plan (2018-2021).

Inflows Aid Blackstone (BX) Assets Growth, High Costs a Woe

Per the Zacks analyst, continued net inflows will further aid Blackstone's assets under management, thereby boosting top line.

Strong Order Trends to Drive ABB (ABB), High Costs Hurt

Per the Zacks analyst, strong orders across ABB's businesses in Asia, Middle East and Africa region including India, Japan, and the UAE bode well for its growth. High operating costs remain concerns.

New Upgrades

Acquisitions, Trading Focus to Aid Schwab (SCHW) Revenues

The Zacks analyst believes that Schwab's planned buyouts of TD Ameritrade and USAA's Investment Management Company as well as focus on trading revenues will support revenues, going forward.

Ubiquiti (UI) Poised to Gain From Resilient Business Model

Per the Zacks analyst, Ubiquiti is likely to benefit from its robust business model, backed by an efficient self-sustaining mechanism, which will maximize growth in the long run.

Murphy USA (MUSA) to Gain from Proximity to Walmart Stores

The Zacks analyst believes that the proximity of Murphy USA's fuel stations to Walmart supercenters helps the company to leverage the strong and consistent traffic that these stores attract.

New Downgrades

Continual Decline in Lazard (LAZ) AUM Balance Hurts Top-line

Per the Zacks analyst, Lazard's steady increase in net outflows is likely to continue to result in decline in AUM balance hurting revenues. Moreover, over dependence on overseas revenues is a concern.

Higher Expenses Weigh on Spectrum Brands' (SPB) Margins

Per the Zacks analyst, input cost inflation as well as higher operating and tariff-related costs are hurting Spectrum Brands' margins. It expects tariff costs of $80-$85 million in fiscal 2020.

Navistar (NAV) Hurt by Contracting Demand for Class 8 Trucks

Per the Zacks analyst, faltering freight market demand and waning orders for Class 8 trucks are likely to hurt Navistar International's earnings prospects in the near future.

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Netflix, Inc. (NFLX) : Free Stock Analysis Report

Altria Group, Inc. (MO) : Free Stock Analysis Report

International Business Machines Corporation (IBM) : Free Stock Analysis Report

Comcast Corporation (CMCSA) : Free Stock Analysis Report

Bank of America Corporation (BAC) : Free Stock Analysis Report

Amazon.com, Inc. (AMZN) : Free Stock Analysis Report

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