Top Analyst Reports for JPMorgan, CME Group & Chubb
Thursday, October 10, 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 JPMorganChase (JPM), CME Group (CME) and Chubb (CB). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
JPMorgan’s shares have outperformed the Zacks Major Regional Banks industry year to date (15.4% vs. 12.8%). The Zacks analyst believes that improving loan balance, opening branches in new regions and focus on strengthening credit card business will support financials.
Acquisition of InstaMed will help the company reach U.S. healthcare payments market. Also, enhanced capital deployment plan reflects a strong balance sheet position and will enhance shareholder value. However, weak mortgage banking performance, mainly due to lower origination volume and rise in competition is a near-term concern.
Further, the company’s significant dependence on capital markets revenues makes us apprehensive. These concerns are expected to hamper fee revenue growth to some extent.
Shares of CME Group have gained 26.1% in the past six months, outperforming the Zacks Securities and Exchanges industry’s rise of 24.3%. The Zacks analyst believes that CME Group remains well poised for growth on a strong market position driven by varied derivative product lines.
Efforts to expand and cross sell through strategic alliances, acquisitions, new product initiatives and a stable global presence bode well. Product innovation and a growing proportion of volume from customers outside the United States have been aiding results. Its options business too gained traction. The company intends to focus more on over-the-counter clearing services.
However, diversified product portfolio is significantly exposed to extreme interest rate volatility, currency fluctuations, firm government regulations and limited credit availability in the current unstable capital and credit markets. Also, escalating expenses remain a concern.
Chubb’s shares have gained 5.4% over the past three months compared with the Zacks Property, Casualty and Title industry’s decline of 2.8%. The Zacks analyst believes that the company's inorganic growth story is impressive, helping it to achieve a higher long-term return on equity. Increased scales, efficiencies and a solid balance sheet lend a competitive edge.
Chubb estimates solid growth in Overseas General operations (both commercial and consumer lines). Growth in invested assets and solid cash flows drive net investment income. A strong capital position helps it to boost shareholders’ value and invest in strategic growth initiatives.
However, exposure to catastrophe loss remains a concern as it induces volatility in underwriting profitability. Also, mounting expenses weigh on margin expansion. A high debt level and lower times interest earned are concerns.
Other noteworthy reports we are featuring today include Enbridge (ENB), S&P Global (SPGI) and Ford Motor (F).
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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
Per the Zacks analyst, Enbridge will earn stable fee-based revenues from its inventory of C$19 billion midstream growth project.
Per the Zacks analyst, Panjiva buyout enhances S&P Global's Global Market Intelligence data and analytical offerings.
The Zacks analyst believes Eaton's steady improvement in end market condition resulting in organic growth across segments, ensure strong performance.
Per the Zacks analyst, Match Group is benefiting from increase in its average subscriber base, driven primarily by solid contribution from Tinder.
The company should gain from efforts to boost margins through the Action 2020 initiative, per the Zacks analyst.
The Zacks analyst believes that the implementation of Vision 2020 is helping Booz Allen Hamilton witness strong performance in the global commercial market.
Per the Zacks analyst, the ongoing turnaround at Paramount and MTV along with new channel launches in the International territories benefits Viacom.
Per the Zacks analyst, Kinross should gain from efforts to advance its growth projects, especially Tasiast. It will also benefit from its focus on managing costs and improve cash flow.
Per the Zacks analyst, deployment of resources to make accretive buyouts, upgrade distribution infrastructure and e-commerce platform, and expand product offerings bode well for Capri Holdings' sales.
Per the Zacks analyst, Sallie Mae's efforts to enhance loan portfolios are impressive. It receives further support from improving economy.
Per the Zacks analyst, Ford's declining profits in South Africa, Middle East and Asian markets amid global slowdown are a concern. Rising U.S.-Sino trade tiff is likely to further dent its margins.
Per the Zacks analyst, the dependence of Sarepta on single product, Exondys 51, is a concern for its near term growth. Competition in RNA-based treatment is another threat.
Persistent softness in used vehicle sales has made the Zacks analyst turn bearish on the stock.
S&P Global Inc. (SPGI): Free Stock Analysis Report
JPMorgan Chase & Co. (JPM): Free Stock Analysis Report
Ford Motor Company (F): Free Stock Analysis Report
Enbridge Inc (ENB): Free Stock Analysis Report
CME Group Inc. (CME): Free Stock Analysis Report
Chubb Limited (CB): 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.