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Top Research Reports for Amazon, Bank of America & Lockheed Martin

Friday, June 5, 2020

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 (AMZN), Bank of America (BAC) and Lockheed Martin (LMT). 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’s shares have outperformed the broader market over the past year (+40.3% vs. +9.5%). The Zacks analyst believes that Amazon is gaining on robust AWS services. Strong adoption rate of AWS is aiding its cloud dominance.

Further, AWS is gaining solid traction among healthcare workers, medical researchers, educational institutions and government organizations owing to coronavirus management measures. Further, Prime momentum owing to fast delivery services and strong content portfolio is benefiting Amazon.

Also, expanding distribution strength and workforce which are helping in addressing the overflowing online orders during this pandemic are major positives. Furthermore, robust Alexa skills and strong smart home product offerings are tailwinds. However, growing coronavirus related expenses might hurt Amazon’s profitability. Also, foreign exchange headwinds and rising cloud competition are risks.

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

Shares of Bank of America have lost -20.4% over the past six months against the Zacks Major Regional Banks industry’s fall of -26.3%. The Zacks analyst believes that opening new branches, improved digital offerings and efforts to manage costs will likely aid profitability.

Additionally, strong balance sheet and liquidity position are expected to continue supporting the company's financials amid economic slowdown. However, near-zero interest rates are expected to hurt the bank’s margins and interest income.

Also, coronavirus-induced concerns will likely continue to hamper business activities and thus, loan growth is expected to be muted. Further, dependence on capital markets performance makes us apprehensive, given its cyclical nature. This is likely to hurt fee income growth to some extent

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

Lockheed Martin’s shares have gained +5.5% over the past three months against the Zacks Aerospace Defense industry’s fall of -9.4%. The Zacks analyst believes that expansionary budgetary provisions made by the current U.S. administration will immensely boost this defense prime's business. It continues to be a strong cash generator.

Lockheed Martin enjoys strong demand for its high-end military equipment in domestic and international markets, being the world’s largest defense contractor. However, Lockheed Martin faces intense global competition for its broad portfolio of products and services.

Furthermore, forced cost reduction initiatives for the F-35 program might hamper its operating results. America and Turkey’s tiff on the later accepting Russian products may hurt Lockheed’s component supply from Turkey. It is also facing performance issues in relation to some of its products, which in turn may hurt its results.  

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

Other noteworthy reports we are featuring today include Alphabet (GOOGL), Micron Technology (MU) and Charles Schwab (SCHW).

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Sheraz Mian

Director of Research

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

Growing AWS Adoption & Prime Momentum Benefit Amazon (AMZN)

Loan Growth, Branch Openings Aid BofA (BAC) amid Lower Rates

Order Growth Aids Lockheed (LMT), Turkey Tiff Poses Risk

Featured Reports

Alphabet (GOOGL) Rides on Diversification; Risks Remain

The Zacks analyst believes that Alphabet's improving search & advertising revenue, focus on cloud, hardware and AI, will continue to deliver growth.

Micron (MU) Benefits from Growing Memory-Chip Demand

Per the Zacks Analyst, Micron is growing on solid memory-chip demand from PC manufacturers and data-center operators.

Buyouts, Trading Focus Aid Schwab (SCHW) Amid Lower Rates

Per the Zacks analyst, strategic acquisitions and efforts to strengthen trading business will likely aid Schwab's profitability.

Growth Investments Supports ABB Despite Weak Market Demand

Per the Zacks analyst, ABB's organic growth investments and diligent cost-cutting initiatives will improve its competency.

New Products Boost General Dynamics (GD), Poor Budget Woes

Per the Zacks analyst, steady product innovations allow General Dyanmics to capture more defense market share.

Enterprise (EPD) Banks on $7.7B Major Midstream Projects

Enterprise will generate additional fee-based revenues from its $7.7 billion of key midstream projects. However, significant debt exposure concerns the Zacks analyst.

Segmental Growth Aids Walgreens (WBA) Amid Coronavirus Impact

The Zacks analyst is impressed with Walgreens' robust prescription sales growth in Retail Pharmacy USA. Yet, the company not providing its full-year outlook is concerning.

New Upgrades

Dollar General's (DG) Sturdy Comps Run to Propel Top-Line

Per the Zacks analyst, better price management, merchandise efforts, operational initiatives and coronavirus-led spike in demand should drive sales.

Jakafi Fuels Incyte (INCY) But Overdependence a Concern

Per the Zacks analyst, Incyte's lead drug Jakafi drives growth for the company on label expansion and approval of other drugs boost growth prospects. The company is highly dependent on Jakafi.

Take-Two (TTWO) Banks on Franchise Strength, User Addition

Per the Zacks Research analyst, expanding user base driven by strength in popular gaming franchises is aiding Take-Two's top-line amid rising competition.

New Downgrades

Coronavirus Woes and High SG&A Costs to Ail LKQ Corp (LKQ)

Low production and demand for vehicles in the wake of coronavirus is likely to weigh on the auto parts provider. High SG&A and manufacturing costs will also mar LKQ's margins, per the Zacks analyst.

Rising Expenses, High Debt Concern First American (FAF)

Per the Zacks analyst, First American's rising expenses drag margins. Also, high debt level and poor interest coverage implying that earnings are not sufficient to cover service debt concerns.

Rising Net Outflows, Concentration Risk Hurt Lazard (LAZ)

Per the Zacks analyst, rising net outflows hurt Lazard's assets under management growth.


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The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
 
Micron Technology, Inc. (MU) : Free Stock Analysis Report
 
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
 
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
 
Bank of America Corporation (BAC) : Free Stock Analysis Report
 
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
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