Top research reports for JPMorgan, Gilead Sciences and CSX

Friday, May 20, 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 JPMorgan Chase & Co. (JPM), Gilead Sciences, Inc. (GILD) and CSX Corp. (CSX). These research reports have been handpicked from the approximately 70 reports published today by our team of analysts.

You can see all today’s research reports here >>>

JP Morgan shares are down -24.2% year-to-date versus Zacks Banks – Major regional industry down -19.1%. The company’s results in the first quarter of 2022 show loan growth, poor performance of capital markets activities and higher provisions.

The volatile nature of trading activity is likely to make it difficult to grow commission income. Relatively low short-term interest rates are expected to continue to weigh on the company’s margins and interest income. The constant increase in expenditure remains a major obstacle in the short term.

However, new branch openings, strategic acquisitions/investments, global expansion and digitization initiatives, and decent investment banking (IB) pipeline will likely continue to help the company’s finances. Its regular capital deployments look sustainable and will increase shareholder value.

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

Gilead Sciences stocks are down -3.7% over the past year compared to the -37.7% decline in the medical industry – biomedical and genetics. Zacks analyst believes loss of Atripla and Truvada exclusivity affects sales. Although the CAR T cell therapy franchise, including Yescarta and Tecartus, is gaining momentum, it still has a long way to go before contributing significantly.

Nonetheless, the company’s flagship HIV therapy, Biktarvy, continues to see growth and market share gains. He is looking to solidify his oncology franchise. The acquisition of Immunomedics added an approved drug Trodelvy to its portfolio, and the drug’s label expansion should boost sales. Increased contribution from COVID-19 treatment, Veklury boosted performance. The recent increase in the number of cases in many countries could further boost sales.

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

CSX stocks are down -5.5% over the past year, compared to a -5.9% drop in the rail industry. The Zacks analyst believes supply chain disruptions are hurting company operations.

Weakness in the commodity segment due to lower auto volumes is a concern. High costs, primarily due to escalating fuel expenses, pose a threat to CSX’s bottom line. The company’s high capital expenditures are also concerning. Due to these headwinds, the company’s shares have lost 17.7% since the start of the year.

However, due to a healthy freight environment, CSX is benefiting from higher coal export volumes, domestic intermodal shipments and favorable pricing. With the demand scenario expected to remain strong, management expects double-digit operating profit and revenue growth for 2022 compared to the respective figures released a year ago. The steps taken by the company to reward shareholders are also encouraging. In February, CSX increased its dividend by 7.5%.

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

Other noteworthy reports we’re featuring today include CVS Health Corp. (CVS), The Progressive Corp. (PGR) and China Petroleum & Chemical Corp. (NPS).

Marc Vickery
Senior Writer

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

Branch expansion efforts help JPMorgan (JPM) amid low rates

Biktarvy and Veklury fuel Gilead (GILD) as core business slows

Healthy freight demand helps CSX amid supply chain issues

Featured Reports

CVS Health (CVS) Pharmaceuticals Business Grows Amid Strong Rivalry
The Zacks analyst is impressed with CVS Health’s pharmacy revenue growth due to increased pharmacy claims volume, growth in specialty pharmacies and brand inflation. Still, the heated rivalry remains a concern.

Progressive Solid Policies (PGR) on Force Aid, Cat Loss Ail
According to the Zacks analyst, Progressive is poised for growth, strong policies in place, competitive pricing and a leadership position. However, exposure to catastrophic losses inducing underwriting volatility is lacking.

Sinopec (SNP) bets on Shengli shale oil geological reserves
The Zacks analyst is impressed with Sinopec’s discovery of 458 million tonnes of shale oil reserves in its Shengli field, which will boost production. Yet rising exploration costs remain a concern.

Intercontinental (ICE) bets on buyouts and a strong balance sheet
According to the Zacks analyst, Intercontinental Exchange is expected to grow through a number of acquisitions and cost synergies. Additionally, a strong balance sheet provides financial flexibility.

Strong investment support Sempra Energy (SRE), low creditworthiness
According to the Zacks analyst, systematic investments significantly improve Sempra Energy’s infrastructure and the reliability of its customers. However, its low solvency remains a concern

Synopsys (SNPS) bets on a strong product menu and wins contracts
According to the Zacks analyst, Synopsys’ focus on bolstering its product portfolio is helping it meet growing demand in the EDA market. Agreements with major semiconductor companies are a tailwind.

Ericsson (ERIC) builds on the strength of a comprehensive 5G portfolio
Ericsson stands to benefit from its comprehensive 5G product portfolio as it focuses on structural changes to drive efficiencies and boost cost competitiveness, the Zacks analyst said.

New upgrades

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

Nutrien (NTR) wins on strong demand and higher prices
According to the Zacks analyst, the company will benefit from strong fertilizer demand driven by strong global agricultural markets. Higher prices for crop nutrients will also support its margins.

Marriott (MAR) is likely to benefit from its robust expansion efforts
The Zacks analyst believes Marriott’s efforts to expand its footprint and improve demand bode well. At the end of the first quarter of 2022, Marriott’s development pipeline totals nearly 2,878 hotels

New downgrades

Walmart (WMT) hit by cost inflation and supply chain hurdles
According to the Zacks analyst, Walmart is battling supply chain hurdles and inflation in fuel and wage costs. Walmart expects some of these issues to persist and lower earnings per share for fiscal 2023.

Soft Hard Seltzer Garlic Boston Beer (SAM) Performance
According to the Zacks analyst, Boston Beer has been reeling from hard seltzer’s slowing growth trends for some time now. As a result, first quarter revenue was down 21.1% year over year.

Falling sales, rising costs Irk Align Technology (ALGN)
Zacks analyst worries about falling revenue from Align Technology’s clear aligners. In addition, the escalation of operating expenses exerts significant pressure on the bottom line.

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 which 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

JPMorgan Chase & Co. (JPM): Free Stock Analysis Report

CSX Corporation (CSX): Free Stock Analysis Report

Gilead Sciences, Inc. (GILD): Free Stock Analysis Report

China Petroleum & Chemical Corporation (SNP): Free Stock Analysis Report

CVS Health Corporation (CVS): Free Stock Analysis Report

The Progressive Corporation (PGR): 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.