Thursday, November 14, 2024

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 JPMorgan Chase & Co. (JPM), Philip Morris International Inc. (PM) and The Progressive Corp. (PGR). These research reports have been hand-picked from roughly 70 reports published by our analyst team today.

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

JPMorgan’s shares have outperformed the Zacks Financial – Investment Bank industry over the past two years (+81.4% vs. +49.0%). The Zacks analyst believes that relatively high interest rates, strategic buyouts, opening branches and a resurgence in deal-making activities have benefited the company.

However, the performance of the IB business, volatile nature of the capital markets business and high mortgage rates remain major headwinds.

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

Philip Morris’ shares have outperformed the Zacks Tobacco industry over the last six months (+24.5% vs. +19.9%). The Zacks analyst believes that robust momentum in smoke-free products, IQOS and ZYN, along with combustible pricing, has bode well for the company. Higher pricing variance and solid cost efforts have also aided the bottom line.

Yet, Philip Morris expects SG&A expenses to remain high due to its planned key commercial activities. The company continues to encounter tobacco leaf inflation.

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

Shares of Progressive have outperformed the Zacks Insurance – Property and Casualty industry over the past year (+65.8% vs. +31.6%). Per the Zacks analyst, higher premiums, a compelling product portfolio, leadership position and strength in both Vehicle and Property businesses have benefited the company. Competitive pricing to retain current customers and address customer needs with new offerings should continue to drive policy life expectancy.

However, exposure to catastrophe losses, escalating expenses due to higher losses and settlement expenses remain an overhang on the margin. Progressive’s high debt level induces higher interest expense concerns.

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

Other noteworthy reports we are featuring today include Shopify Inc. (SHOP), The TJX Companies, Inc. (TJX) and Motorola Solutions, Inc. (MSI).

Mark Vickery
Senior Editor

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

Buyouts, Rates & Loans Aid JPMorgan (JPM), Fee Income Ails

Philip Morris (PM) Benefits from Strong Smoke-free Revenues

Exposure to Cat Loss, High Expenses Ail Progressive (PGR)

Featured Reports

Focus on Renewable Energy Aid Constellation Energy (CEG)
Per the Zacks analyst, Constellation Energy gains from expansion of renewable portfolio. Its position as an industry leader in the safe operation of nuclear plants helps it increase its nuclear output

Operating Prowess Aid Waste Connections (WCN), Liquidity Low
Per the Zacks analyst, Waste Connections' low-overhead, highly efficient operational structure allows it to expand into geographically contiguous markets. Low liquidity remains a concern.

Pricing Drives Rockwell Automation (ROK), Low Orders Ail
Per the Zacks Analyst, low order levels are denting Rockwell Automation's margins. However, its efforts to optimize its portfolio and price increase actions will drive growth.

Motorola (MSI) Rides on Portfolio Strength, Solid Orders
Per the Zacks analyst, Motorola is likely to benefit from solid order trends driven by the diligent execution of operational plans and healthy growth dynamics, owing to which it raised 2024 guidance.

The TJX Companies' (TJX) Top Line Gains From Sturdy Comps Run
Per the Zacks analyst, TJX Company's sales are benefiting from a steady rise in customer transactions. In the second quarter of fiscal 2024, comparable sales grew across all divisions.

Strong Enrollment Aids Strategic Education (STRA), Cost High
Per the Zacks analyst, Strategic Education is benefiting from continued enrollment at U.S. Higher Education and Australia/New Zealand segments. Yet, higher operating expense raises concern.

Diversification Aids Annaly (NLY) Amid Market Volatility
Per the Zacks analyst, Annaly's effort to diversify its investment portfolio will result in long-term earnings accretion. Yet, mortgage market volatility might affect its investment performance.

New Upgrades

Product Rollouts & Growing Merchant Base Aid Shopify (SHOP)
Per the Zacks analyst, Shopify is benefiting from expanding merchant base driven by applications like Shopify Bill Pay, Tax platform, Collective and Marketplace Connect solutions.

Southwest Airlines (LUV) Benefits From Air Travel Demand
The Zacks Analyst is impressed with the fact that increased air-travel demand is aiding Southwest Airlines' top-line performance.

Strong Uptake of XT Amplify Program Aids Omnicell (OMCL)
The Zacks analyst is impressed with the strong uptake of Omnicell's XT Amplify program which is helping it to gain good momentum in automation and analytics business.

New Downgrades

TC Energy (TRP) Weighed Down by Massive Debt Burden
The Zacks analyst believes that TC Energy's debt-to-capitalization ratio of 64% is a concern, limiting the company's financial flexibility and its ability to capitalize on growth opportunities.

Declining Global Production Hours to Ail CNH Industrial (CNH)
Per the Zacks analyst, the expected year-over-year decline in global production hours is likely to hit CNH Industrial's top-line growth. The rising debt level is also concerning.

Macroeconomic Woes Hurt Akamai's (AKAM) Revenue Growth.
Per the Zacks Analyst, macroeconomic headwinds, geopolitical instability and aggressive pricing strategies are hurting Akamai's (AKAM) profitability. Forex volatility also remains a concern.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

The TJX Companies, Inc. (TJX) : Free Stock Analysis Report

Philip Morris International Inc. (PM) : Free Stock Analysis Report

The Progressive Corporation (PGR) : Free Stock Analysis Report

Motorola Solutions, Inc. (MSI) : Free Stock Analysis Report

Shopify Inc. (SHOP) : Free Stock Analysis Report

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Zacks Investment Research