Zacks analyst blog spotlights Amazon, Walmart, Bank of America, American Express and SAP
For immediate release
Chicago, IL – July 26, 2022 – Zacks.com announces the list of stocks featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Stocks recently featured in the blog include: Amazon.com, Inc. AMZN, Walmart Inc. WMT, Bank of America Corp. BAC, American Express Co. AXP and SAP SE SAP.
Here are the highlights from Monday’s analyst blog:
Best Stock Reports for Amazon, Walmart, and Bank of America
Zacks Research Daily features top research results from our team of analysts. Today’s Research Daily features new research reports on 16 major stocks, including Amazon.com, Inc., Walmart Inc. and Bank of America Corp. These research reports have been handpicked from the approximately 70 reports published by our team of analysts today.
You can see all today’s research reports here >>>
Amazon shares are down -33.7% over the past year against the industry decline Zacks Internet – Commerce of -40.0%. Growing business expenses coupled with supply chain constraints and labor shortages remain a concern. Nevertheless, Amazon is gaining on strong Prime momentum thanks to lightning-fast delivery services and a strong content portfolio.
In addition, the strengthening of relationships with third-party sellers is a positive point. Also, the growing momentum of Amazon Music helps nicely. Notably, the stock has outperformed its industry since the start of the year. AWS’s high adoption rate contributes to the company’s cloud dominance. Additionally, the expansion of the AWS service portfolio continually helps Amazon gain traction with customers.
Plus, strong Alexa skills and expanding smart home product portfolio are positives. Additionally, the company’s strong global presence and strong momentum among small and medium-sized businesses remain tailwinds.
walmart shares are down -6.0% over the past year against the Zacks Retail – Supermarkets industry decline of -4.0%. The company struggles with supply chain bottlenecks and persistently high inflation. Operating profit for the company’s US segment was impacted by high labor costs, an unfavorable mix due to the lower percentage of general merchandise and fuel costs, and supply chain issues in the first quarter. Some of these cost headwinds are likely to persist.
However, Walmart has benefited from its strong comp sales record, which in turn is being driven by its consistent expansion efforts and strong e-commerce performance. The company’s initiatives to boost e-commerce business include careful takeovers, alliances, and improved delivery and payment systems. In its first-quarter fiscal 2023 earnings call, management raised its view for net sales, which is expected to grow about 4% at constant currency.
Bank of America shares are down -9.8% over the past year against Zacks Banks – Major regional industry decline of -12.5%. The company’s results in the second quarter of 2022 were impacted by poor performance in the investment banking (IB) business, partially offset by growth in interest income. Its overreliance on commercial revenue is of concern. The volatile nature of the capital markets could hamper the growth of fee income.
A stretched valuation limits the stock’s upside potential. Its results for the second quarter of 2022 were penalized by the poor performance of the investment banking (IB) activity, partly offset by the growth in interest income. The opening of new financial centers, improved digital capabilities and cost reduction efforts will likely continue to help the company’s finances.
Supported by robust loan growth, its revenue should improve. Given rising rates, Bank of America is expected to experience near-term margin growth.
Other noteworthy reports we’re featuring today include American Express Co. and SAP SE.
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