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

Tuesday 21 June 2022

The Zacks Research Daily presents the best research 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 selected from the approximately 70 reports published today by our team of analysts.

You can All current research reports can be found here >>>

alphabet The shares have fared much better than the peer group in the ongoing market decline, with the stock shedding -9.5% of its value over the past year while the Zacks internet services industry is down -26.1%. While rising spending and issues surrounding regulatory uncertainty are worrisome, Alphabet’s strong cloud division is contributing to significant revenue growth. In addition, the expansion of data centers will further strengthen its presence in the cloud space. In addition, important updates in the search segment improve search results. In addition, Google’s mobile search is gaining momentum.

A strong focus on the innovation of AI techniques and the home automation area should also support the company’s growth in the long term. Additionally, the deepening focus on the wearables category remains a tailwind. Additionally, the company’s growing efforts to break into the healthcare industry is another positive. Alphabet’s growing presence in the autonomous driving space is also a good contributor.

(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% drop but worse than the -14.1% drop in the S&P 500 index. BAC stocks and the broader group are weighed down by ongoing recession fears, reflected in the yield curve flattening, which is offsetting the margin benefits of the Fed’s tightening cycle.

However, the opening of new financial centers, improvements in digital capabilities and efforts to cut costs will likely continue to support the financial industry. 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 increase shareholder value through impressive capital commitments.

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

Karl Schwab Shares are down -11.7% over the past year versus a -22.1% decline in the Zacks Financial – Investment Bank industry. The company’s increased operating expenses could impact earnings growth to some extent. However, strategic acquisitions, which are expected to be earnings accretive, have strengthened Schwab’s position as a leading brokerage provider.

The Company’s offering of commission-free trading has resulted in an increase in client assets and brokerage accounts, thereby improving trading revenues. Schwab’s efficient use of capital reflects a solid balance sheet position that will enable Schwab to increase shareholder value.

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

Other notable reports we are presenting today are GSK plc (GSK), Caterpillar Inc. (CAT) and Starbucks Corporation (SBUX).

Sheraz Mian

Director of Research

Note: Sheraz Mian heads up Zacks Equity Research and is a respected expert on total returns. He is frequently quoted in print and electronic media and edits the weekly newspaper earnings trends and result preview reports. If you would like an email notification every time Sheraz publishes a new article, please click here>>>

Must read today

Alphabet (GOOGL) benefits from cloud and search initiatives

Cost Saving Efforts Aid Bank of America (BAC), Low Rates Ail

Strategic acquisitions help Schwab (SCHW) for cost reasons

Selected Reports

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

Caterpillar (CAT) benefits from strong demand in end markets
According to the Zacks analyst, a solid backlog, improved end-market demand and a focus on strategic investments in expanded offerings, services and digital initiatives will drive Caterpillar’s results.

Store growth and robust comps should help Starbucks (SBUX).
Fast unit growth, digital offerings, and robust comps growth bode well for Starbucks, according to the Zacks analyst. In the second quarter of fiscal 2022, global comparable store sales increased 7% year over year.

Better prices, new growth impetus for business Chubb Limited (CB)
According to the Zacks analyst, Chubb will grow on better pricing, new business growth, and a high renewal rate. However, the risk of catastrophic losses creates volatility in underwriting, while rising costs put pressure on margins

Permian Basin Focus, Cost Management Aid Occidental (OXY)
According to the Zacks analyst, with the acquisition of Anadarko, Occidental expanded its operations in the resource-rich Permian Basin, and efficient cost management will drive its performance over the long term.

EOG Resources (EOG) backs Delaware & Bakken Shale Plays
According to the Zacks analyst, EOG Resources’ strong presence in the oil-rich Delaware and Bakken shale deposits has made the company’s production prospects rosy. However, rising lease and well costs are a concern.

Ericsson (ERIC) is pursuing 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 acquisition of Vonage that expands its presence in the enterprise wireless market.

New upgrades

Service Corporation (SCI) wins in the robust funeral segment
The Service Corporation is gaining solid funeral sales for a while, according to the analyst at Zacks. For the first quarter, consolidated funeral revenue increased 4.8% year over year to $649.1 million.

Four PAH drugs from United Therapeutics (UTHR) to boost sales
According to the Zacks analyst, United Therapeutics’ strong position in the PAH market with four approved products and 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 buyout strategy to expand its global footprint and brand exposure. The expansion of the connected vehicle fleet has helped streamline operations and reduce costs.

New downgrades

Lower production and higher costs for Hurt National Steel (SID)
According to Zacks analyst, lower mining output due to heavy rains along with volatile iron ore prices and rising costs and expenses will weigh on National Steel’s results.

Higher freight costs for Mar American Eagle (AEO) margins.
According to the Zacks analyst, American Eagle is teetering under high rates of inflation and freight costs resulting from increased rental and delivery costs. This resulted in a reduced margin view for fiscal 2022.

Higher operational costs hurt healthcare (CHNG)
According to the Zacks analyst, an increase in overall operating expenses, primarily due to higher SG&A expenses, could hamper Change Healthcare’s operating margin growth.

Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts have each selected their favorite, which will skyrocket by +100% or more in the coming months. From these 5, Research Director Sheraz Mian selects one that has the most explosive perk of all.

It’s a little-known chemical company that’s up 65% year over year, but it’s still dirt cheap. With continued demand, rising earnings estimates for 2022 and $1.5 billion in share buybacks, retail investors could jump in at any time.

This company could match or outperform other recent Zacks stocks set to double, such as Boston Beer Company, up +143.0% in just over 9 months, and NVIDIA, up +175.0% in a year, 9% boomed.

Free: Check out our top stocks and 4 runners-up >>

Click here to get this free report

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

GlaxoSmithKline plc (GSK): Free stock research report

Caterpillar Inc. (CAT): Free Stock Research Report

Starbucks Corporation (SBUX): Free Stock Research Report

The Charles Schwab Corporation (SCHW): Free stock research report

Alphabet Inc. (GOOGL): Free Stock Research Report

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Zacks Investment Research

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

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