CHICAGO, May 8, 2014 /PRNewswire/ -- 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 the JPMorgan Chase & Co. (NYSE:JPM-Free Report), Citigroup Inc. (NYSE:C-Free Report), HSBC Holdings plc (NYSE:HSBC-Free Report), Wells Fargo & Co. (NYSE:WFC-Free Report) and Univest Corporation of Pennsylvania (Nasdaq:UVSP-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Wednesday's Analyst Blog:
JPMorgan to Close Foreign Diplomat Accounts
JPMorgan Chase & Co. (NYSE:JPM-Free Report) is set to shut down the accounts of the current and former foreign government officials. This would impact nearly 3,500 accounts held with the bank. The news was first reported by the Financial Times on Tuesday.
Apart from closing the Chase accounts of these foreign officials, JPMorgan will stop the credit card facilities for them as well. However, the accounts held with the company's private bank (which primarily deals with a wealthier client base) were exempted from the aforementioned streamlining.
The latest move on the company's front comes as a part of its anti money-laundering controls. Moreover, the rigorous scrutiny procedure associated with the accounts of the foreign government officials entails huge compliance cost. Therefore, the closure of these accounts will enable JPMorgan to control the surge in the same.
Nevertheless, the recent development has been subject to criticism from non-U.S. officials on grounds of discrimination. Further, José Antonio Ocampo, the former finance minister of Colombia has already submitted a written complaint against it to the US Consumer Financial Protection Bureau.
Some of the other banks that cater foreign government officials in the U.S. include Citigroup Inc. (NYSE:C-Free Report) and HSBC Holdings plc (NYSE:HSBC-Free Report). These companies might follow the suit and close the accounts of foreign officials as the overall economy remains sluggish with continued rise in overall expenses.
Further, we see no distinctive improvement in the equity market. This was also affirmed by JPMorgan in its latest quarterly filing where it projected a 20% year over year decline in market revenue for second quarter 2014. Amid the given scenario wherein there are limited scopes to improve the top line, companies like JPMorgan are resorting to aggressive cost cutting measures in an attempt to enhance profits.
Moreover, having cleared most of its major legal hassles in the 2013, the company now quite understandably wants to steer clear of businesses that entail litigations and may increase legal expenses going forward.
JPMorgan currently carries a Zacks Rank #4 (Sell). Another major regional bank worth considering is Wells Fargo & Co. (NYSE:WFC-Free Report) sporting a Zacks Rank #2 (Buy).
Univest Upgraded to Strong Buy
Zacks Investment Research upgraded Univest Corporation of Pennsylvania (Nasdaq:UVSP-Free Report) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Univest Corporation has been witnessing rising earnings estimates on the back of strong first quarter 2014 results, including growth in loans and healthy capital position. The long-term expected earnings growth rate for this stock is 4.00%.
Univest reported its first quarter results on Apr 23 with earnings of 35 cents per share, beating the Zacks Consensus Estimate of 30 cents by 16.7%. Also, earnings came in 9.4% higher than the prior-year quarter earnings of 32 cents.
Better-than-expected results in the reported quarter were primarily driven by fall in interest expenses and lower provision for loan and lease losses.
Average gross loans and leases ascended 4.5% year over year, while average deposits inched up 1.9%. This reflects organic growth of the company.
On the flip side, 2.8% fall in interest income and 3.2% rise in non-interest expense was recorded.
For 2014, the Zacks Consensus Estimate increased 3.7% to $1.40 per share over the last 60 days. For 2015, the Zacks Consensus Estimate advanced 6.7% to $1.60 per share over the same time period.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
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