For Immediate Release

Chicago, IL – May 31, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: JPMorgan Chase & Co. JPM, Chevron Corp. CVX, Cisco Systems, Inc. CSCO, Atrion Corp. ATRI and The Eastern Co. EML.

Here are highlights from Thursday’s Analyst Blog:

Top Analyst Reports for JPMorgan Chase, Chevron and Cisco

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., Chevron Corp and Cisco Systems, Inc., as well as two micro-cap stocks, Atrion Corp. and The Eastern Co..

The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.

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 >>>

Shares of JPMorgan Chase have outperformed the Zacks Banks - Major Regional industry over the past year (+51.0% vs. +45.1%). High rates for a longer time period, strategic buyouts and partnerships, opening new branches and solid loan balance will aid net interest income (NII), though higher funding costs will weigh on it.

While there has been a resurgence in global deal-making activities, a complete revival will still take some time. Thus, the performance of the investment banking (IB) business is not expected to improve much anytime soon. The volatile nature of the capital markets business and high mortgage rates will likely hamper fee income.

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

Chevron shares have gained +9.4% over the past year against the Zacks Oil and Gas - Integrated - International industry's gain of +16.4%. The company is positioned as one of the top global integrated oil firms, set for sustainable production growth, particularly due to its dominant position in the lucrative Permian Basin.

Further, the recent acquisition of Hess Corporation is expected to significantly strengthen Chevron's presence in oil-rich Guyana. However, the company is grappling with high sensitivity to oil price fluctuations and relatively expensive valuation.

Another concern is the sub-100% reserve replacement ratio, indicating challenges in replenishing produced energy. Considering all these factors, investors are advised to wait for a better entry point.

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

Shares of Cisco have declined -3.7% over the past year against the Zacks Computer - Networking industry's decline of -5.6%. The company's third-quarter fiscal 2024 results suffered from weak networking revenues. However, security and observability revenues grew year over year.

It witnessed product order growth in two of its largest product portfolios, data center switching and campus switching, as well as in security and collaboration. Cisco's business model has evolved with subscription revenues accounting for more than half of its total revenues. The addition of Splunk further enhances the recurring revenue base of the company.

The buyout significantly expands Cisco's portfolio of software-based solutions, contributing more than $4 billion in annualized recurring revenue and makes it one of the largest software companies in the world. The launch of AI-powered Hypershield, which combines security and networking, strengthened Cisco's security portfolio.

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

Atrion shares have outperformed the Zacks Medical - Dental Supplies industry over the year-to-date period (+23.2% vs. -1.5%). This microcap company with market capitalization of $810.28 million has a strong cash position and a $25 million credit facility supporting financial stability and future growth.

The growing global medical devices market presents significant opportunities for Atrion, leveraging trends like chronic diseases and an aging population. Geographic diversification, with robust U.S. revenues and international contributions, mitigates regional risks.

However, COGS increased by 40.4%, resulting in declining gross margins due to higher manufacturing costs and a $2.3 million inventory write-off. High inventory levels, regulatory risks, and competitive pressures from major players could strain profitability.

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

Shares of Eastern Company have outperformed the Zacks Security and Safety Services industry over the year-to-date period (+29.2% vs. +11.1%). This microcap company with market capitalization of $179.46 million have successful customer relationships and a stable order flow, providing a solid foundation for sustained growth.

Operational efficiencies are evident with a $3.5 million inventory reduction and improved gross margin of 24% from 21% in Q1 2023, driven by cost-saving initiatives. Eastern's financial health is strengthened by reducing long-term debt. A robust 83-year history of 334 consecutive quarterly dividends underscores financial stability and shareholder value.

Vertical integration and strategic M&A opportunities aim to boost profitability. However, a 6% sales decline in Q1 2024, supply chain disruptions, cost inflation, competitive pressures, dependence on key customers, and regulatory risks pose challenges.

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

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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

Chevron Corporation (CVX) : Free Stock Analysis Report

Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report

Eastern Company (The) (EML): Free Stock Analysis Report

Atrion Corporation (ATRI): Free Stock Analysis Report

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