Best analyst reports for Alphabet, Bank of America and Charles Schwab

Tuesday, June 21, 2022

Zacks Research Daily features top research results from our team of analysts. Today’s Research Daily features new research reports on 16 major stocks, including Alphabet Inc. (GOOGL), Bank of America Corporation (BAC) and The Charles Schwab Corporation (SCHW). These research reports have been handpicked from the approximately 70 reports published today by our team of analysts.

You can see all research reports from today here >>>

Alphabet stocks have held up much better than the peer group in the current market, with the stock losing -9.5% of its value over the past year against the -26.1% decline in the internet services sector from Zacks. While rising expenses and regulatory uncertainty issues are worrisome, Alphabet’s strong cloud division is contributing to substantial revenue growth. Moreover, the expansion of data centers will continue to strengthen its presence in the cloud space. Additionally, major updates in its search segment improve search results. Additionally, Google’s mobile search is gaining momentum.

Additionally, a strong focus on the innovation of AI techniques and the home automation space is expected to drive long-term business growth. Additionally, its growing focus on the wearables category remains a tailwind. Additionally, the company’s growing efforts to gain a foothold in the healthcare industry are further positives. Plus, Alphabet’s growing presence in the self-driving space helps a lot.

(You can read the full Alphabet research report here >>>)

Bank of America stocks are down -18% over the past year, better than JPMorgan’s -23.3% decline but worse than the S&P 500’s -14.1% decline. Ongoing recession fears are weighing on BAC shares and the wider group, as evidenced by the flattening of the yield curve offsetting the margin benefits of the Fed tightening cycle.

However, the opening of new financial centers, improved digital capabilities and cost-cutting efforts will likely continue to help financials. Supported by robust loan growth and the investment banking (IB) pipeline, the company’s revenue is expected to continue to improve in the coming quarters. The company will continue to build shareholder value through impressive capital deployments.

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

Charles Schwab shares are down -11.7% over the past year against Zacks Financial – the investment banking industry’s decline of -22.1%. The company’s high operating expenses could hamper its earnings growth to some extent. However, strategic acquisitions, likely to be accretive, have strengthened Schwab’s position as a major brokerage player.

The company’s commission-free trading offering has resulted in an increase in client assets and brokerage accounts, thereby improving trading revenue. Schwab’s efficient capital deployments reflect a strong balance sheet position, through which it will increase shareholder value.

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

Other noteworthy reports we feature today include GSK plc (GSK), Caterpillar Inc. (CAT) and Starbucks Corporation (SBUX).

Sheraz Mian

Director of Research

Note: Sheraz Mian leads the equity research department at Zacks and is a well-known expert on overall earnings. He is frequently quoted in the written and electronic press and publishes the weekly Earnings Trends and Revenue overview reports. If you would like to receive an email notification whenever Sheraz publishes a new article, please click here>>>

To read today

Alphabet (GOOGL) benefits from cloud and search initiatives

Aid Bank of America (BAC) cost reduction efforts, low rates all

Helping Schwab (SCHW) Strategic Acquisitions with Cost Challenges

Featured Reports

Glaxo’s (GSK) specialty drugs drive sales in 2022
Glaxo’s specialty products like Dovato, Nucala, Trelegy Ellipta, Shingrix are driving sales, offsetting a drop in sales of established drugs due to generic erosion, according to the Zacks analyst.

Caterpillar (CAT) to Benefit from Strong Demand in End Markets
According to the Zacks analyst, a strong backlog, improving end-market demand and a focus on strategic investments in expanded digital offerings, services and initiatives will drive Caterpillar’s results.

Store growth and robust comps likely to help Starbucks (SBUX)
According to the Zacks analyst, Starbucks’ rapid unit growth, digital offerings and robust comps growth bode well. In the second quarter of Fiscal 2022, global same-store sales increased 7% year-over-year.

Better prices, new business growth drive Chubb Limited (CB)
According to the Zacks analyst, Chubb is expected to grow on the back of better pricing, new business growth and a high turnover rate. Still, Cat Loss Exposure Induces Underwriting Volatility While Rising Costs Pressure Margin

Permian Basin Focus, Western Cost Management Aid (OXY)
According to the Zacks analyst, Occidental’s acquisition of Anadarko has expanded its operations in the resource-rich Permian Basin and effective cost management will boost its long-term performance.

EOG Resources (EOG) bets on Delaware and Bakken shale deposits
According to the Zacks analyst, EOG Resources’ strong footprint in the oil-rich plays of Delaware and the Bakken Shale has made the company’s production prospects bright. However, rising rental and well fees are of concern.

Ericsson (ERIC) bets on holistic growth to expand its footprint
According to the Zacks analyst, Ericsson is well positioned for healthy growth momentum with a comprehensive 5G portfolio and a strategic takeover of Vonage that expands its presence in the enterprise wireless market.

New upgrades

Service Corporation (SCI) wins on a robust funeral segment
According to the Zacks analyst, Service Corporation has been gaining on strong funeral product sales for some time. During the first quarter, consolidated funeral proceeds increased 4.8% year over year to $649.1 million.

United Therapeutics (UTHR) Four anti-PAH drugs to boost sales
According to the Zacks analyst, United Therapeutics’ strong position in the PAH market with four approved products and its focus on expanding indications for its drugs could drive long-term growth.

Avis Budget (CAR) benefits from acquisitions and fleet growth
The Zacks analyst is encouraged by Avis Budget’s takeover strategy to expand global footprint and brand presence. The expansion of the connected car fleet has streamlined operations and reduced costs.

New downgrades

Lower production and higher costs hurt National Steel (SID)
Lower mining production due to heavy rains, volatile iron ore prices and rising costs and expenses will weigh on National Steel’s results, according to the Zacks analyst.

Higher freight costs for Mar American Eagle (AEO) margins
According to the Zacks analyst, American Eagle is reeling from high inflation rates and transportation costs resulting from rising rents and delivery charges. This has led to a reduced view of the margin for fiscal year 2022.

Higher operating expenses hurt Change Healthcare (CHNG)
According to the Zacks analyst, the increase in total operating expenses, mainly due to higher selling, general and administrative expenses, could hurt Change Healthcare’s operating margin expansion.

Zacks names ‘only one best choice for doubling up’

From thousands of stocks, 5 Zacks experts have each picked their favorite to skyrocket by +100% or more in the coming months. Of these 5, Research Director Sheraz Mian selects one to have the most explosive advantage of all.

It’s a little-known chemical company that’s up 65% year-on-year, but still very cheap. With relentless demand, rising earnings estimates for 2022 and $1.5 billion for stock buybacks, retail investors could step in at any time.

This company could rival or surpass other recent Zacks stocks that are expected to double, such as Boston Beer Company which jumped +143.0% in just over 9 months and NVIDIA which jumped +175.9% in one. year.

Free: See our best stock and our 4 finalists >>

Click to get this free report

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

GlaxoSmithKline plc (GSK): Free Stock Analysis Report

Caterpillar Inc. (CAT): Free Inventory Analysis Report

Starbucks Corporation (SBUX): Free Inventory Analysis Report

The Charles Schwab Corporation (SCHW): Free Stock Analysis Report

Alphabet Inc. (GOOGL): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.