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Top Stock Reports for Amazon.com, Walmart & Bank of America

Monday, July 25, 2022

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 Amazon.com, Inc. (AMZN), Walmart Inc. (WMT), and Bank of America Corp. (BAC). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
 
You can see all of today’s research reports here >>>

Amazon shares have declined -33.7% over the past year against the Zacks Internet - Commerce industry’s decline of -40.0%. The company’s growing expenses associated with supply-chain constraints and labor supply shortages remain concerns. Nevertheless, Amazon is gaining on solid Prime momentum owing to ultrafast delivery services and strong content portfolio.

Further, strengthening relationships with third-party sellers is a positive. Also, growing momentum across Amazon Music is contributing well. Notably, the stock has outperformed its industry on a year-to-date basis. Strong adoption rate of AWS is aiding the company’s cloud dominance. Also, expanding AWS services portfolio is continuously helping Amazon in gaining further momentum among the customers.

Further, robust Alexa skills and expanding smart home products portfolio are positives. Additionally, the company’s strong global presence and solid momentum among the small and medium businesses remain tailwinds.

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

Walmart shares have declined -6.0% over the past year against the Zacks Retail - Supermarkets industry’s decline of -4.0%. The company is battling supply-chain bottlenecks and persistently elevated inflation. The company’s U.S. segment operating income was hurt by high wage costs, an adverse mix due to the lower percentage of general merchandise and fuel costs and supply-chain woes in the first quarter. Some of these cost headwinds are likely to persist.

However, Walmart has been gaining from its sturdy comp sales record, which in turn is driven by its constant expansion efforts and solid e-commerce performance. The company’s initiatives to boost e-commerce business include prudent buyouts, alliances, and improved delivery and payment systems. On its first-quarter fiscal 2023 earnings call, management raised its net sales view, which is likely to grow about 4% at constant currency.

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

Bank of America shares have declined -9.8% over the past year against the Zacks Banks - Major Regional industry’s decline of -12.5%. The company’s second-quarter 2022 results were hurt by poor performance of the investment banking (IB) business, partly offset by growth in interest income. Its over-dependence on trading revenues is concerning. The volatile nature of the capital markets might hamper fee income growth.

A stretched valuation limits the stock’s upside potential. Its second-quarter 2022 results were hurt by poor performance of the investment banking (IB) business, partly offset by growth in interest income. The opening of new financial centers, enhancement in digital capabilities and cost-saving efforts will likely keep aiding the company’s financials.

Supported by robust loan growth, its top line is expected to improve. Given the rise in rates, Bank of America is expected to witness growth in margins in the near term.

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

Other noteworthy reports we are featuring today include United Parcel Service, Inc. (UPS), American Express Company (AXP), and SAP SE (SAP).

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

Prime Momentum & Growing AWS Adoption Benefit Amazon (AMZN)

Walmart (WMT) Benefits from Impressive E-Commerce Operations

Higher Rates Aid Bank of America (BAC) Amid Fee Income Woes

Featured Reports

Dividends, Buybacks & E-commerce Boost UPS, Cost Woes Bother
The Zacks analyst is impressed with the company's efforts to reward its shareholders. E-commerce growth is a bonus. Escalated operating expenses are, however, limiting bottom-line growth.

AmEx (AXP) to Gain From Rising Consumer Spending & Buyouts
Per the Zacks analyst, increased consumer spending and economic recovery will boost volumes, and buyouts would trigger inorganic growth for American Express. Yet, rising costs hurt the bottom line.

Solid Momentum in Cloud Business Driving SAP's Performance
Per the Zacks Analyst, SAP's performance is gaining from its strengthening cloud business, mainly Rise with SAP solution. However, weak uptake of software licenses and support offerings is a concern.

Battery Management System Solutions Aid Analog Devices (ADI)
Per the Zacks analyst, Analog Devices is benefiting from a strong momentum in the electric vehicle space on the back of its robust Battery Management System solutions.

Altria (MO) Gains From Robust Pricing, High Costs a Worry
Per the Zacks analyst, Altria's adjusted operating companies income has been benefiting from strong pricing power. However, management expects inflation to linger in 2022, per its last earning call.

Schlumberger (SLB) to Gain on Rising Oilfield Service Demand
Per the Zacks analyst, Schlumberger (SLB) is poised to gain from a rising oilfield services demand as rising oil prices have heightened drilling activities. Yet, its massive debt level is concerning.

Cost Reduction, Acquisitions to Aid PPG Industries (PPG)
Per the Zacks analyst, PPG will gain from cost savings through restructuring actions and synergies of acquisitions amid headwinds from higher raw material and logistics costs.

New Upgrades

Alcon (ALC) Thrives on Strong Surgical & Vision Care Sales
The Zacks analyst is upbeat about Alcon's robust implantables, consumables and equipment sales across the Surgical arm. Vision Care sales growth in the contact lens category is encouraging too.

Solid Investments Boost CenterPoint Energy's (CNP) Growth
Per the Zacks analyst, CenterPoint Energy's investment in infrastructure and expansion projects tend to boost its long-term growth prospects and earnings amid the increasing utility demand.

Buyouts, Loan Demand, Digitization Support F.N.B Corp (FNB)
Per the Zacks analyst, strategic acquisitions, steady rise in loan demand, strong balance sheet, efforts to strengthen fee income and digitization of operations will support F.N.B Corp's financials.

New Downgrades

Pacira's (PCRX) High Reliance on Exparel for Revenues a Woe
Per the Zacks analyst, Pacira is heavily dependent on lead drug Exparel for revenues, which is a concern. Recent pipeline setbacks and lack of a strong pipeline also remains an overhang.

High Costs & Debt Likely to Hurt Red Rock Resorts (RRR)
Per the Zacks analyst, rise in labor and commodity cost continues to hurt Red Rock Resorts. Moreover, high debt remains a concern for the company.

Principal Financial (PFG) Cost & Pension Risk Transfer Ails
Per the Zacks analyst, high cost due to claims and settlement expenses weigh on margins. Also, the company has been witnessing slowdown in pension risk transfer pipeline due to lower interest rate.


5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.

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.

Today, See These 5 Potential Home Runs >>

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
 
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
 
Bank of America Corporation (BAC): Free Stock Analysis Report
 
Walmart Inc. (WMT): Free Stock Analysis Report
 
American Express Company (AXP): Free Stock Analysis Report
 
United Parcel Service, Inc. (UPS): Free Stock Analysis Report
 
SAP SE (SAP): Free Stock Analysis Report
 
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