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Top Analyst Reports for Alphabet, Goldman Sachs & Anheuser-Busch

·6 min read

Wednesday, August 31, 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 Alphabet Inc. (GOOGL), The Goldman Sachs Group, Inc. (GS) and Anheuser-Busch InBev SA/NV (BUD). 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 >>>

Alphabet shares have declined -24.8% over the past year against the Zacks Internet - Services industry’s decline of -29.4%. The softening ad-spedning outlook is the primary headwind, with growing litigation issues and increasing expenses add to the list to the of concerns about the stock. Nevertheless, a strong cloud division is aiding substantial revenue growth. Moreover, expanding data centers will continue to bolster its presence in the cloud space.

Further, major updates in its search segment are enhancing the search results. Moreover, Google’s mobile search is gaining solid momentum. Also, strong focus on innovation of AI techniques and the home automation space should aid business growth in the long term.

Further, its deepening focus on the wearables category remains a tailwind. Furthermore, the company’s growing efforts to gain a foothold in the healthcare industry are other positives. Also, Alphabet’s expanding presence in the autonomous driving space is contributing well.

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

Goldman Sachs shares have declined -11.8% over the year-to-date basis against the Zacks Financial - Investment Bank industry’s decline of -13.4%. The weakening outlook for the company’s investment banking busines in the current uncertain macroeconomic backdrop is the biggest cloud on Goldman's horizon, with industry-wide rising expense trends also adding to the issues.

However, the company continues to expand organically and bolster its digital consumer banking platform. Other than business diversification, robust client engagement, a solid position in announced and completed mergers and acquisitions (M&As), and a decent investment banking (IB) backlog are likely to aid in navigating weaker markets. Also, its robust liquidity position will help sustain capital deployments.

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

Anheuser-Busch shares have declined -18.0% over the year-to-date basis against the Zacks Beverages - Alcohol industry’s decline of -5.2%. The investor’s bearish sentiment can be attributed to the high costs and supply-chain headwinds, which have been hurting margins. The company’s gross and EBIT margin declined in second-quarter 2022, driven by higher cost of sales and SG&A expense. Higher SG&A expenses resulted from elevated supply-chain costs.

However, the company has posted better-than-anticipated earnings in second-quarter 2022 on the continued business momentum, due to relentless execution, investment in brands and accelerated digital transformation.

The expansion of the Beyond Beer portfolio, and investments in B2B platforms, e-commerce and digital marketing bode well. Revenues improved year over year on robust volume and revenue per hectoliter (hl) growth, as well as strength in global brands.

(You can read the full research report on Anheuser-Busch here >>>)

Other noteworthy reports we are featuring today include Blackstone Inc. (BX), PayPal Holdings, Inc. (PYPL), and Duke Energy Corporation (DUK).

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

Alphabet (GOOGL) Benefits From Cloud & Search Initiatives

Business Diversification Aids Goldman (GS), High Costs Ail

Digital Investments Brighten AB InBev's (BUD) Growth Prospects

Featured Reports

Inflows Aid Blackstone's (BX) Asset Growth, High Costs a Woe
Per the Zacks analyst, net inflows, diversified products and revenue mix will likely drive Blackstone's assets under management growth. Higher costs due to investments in franchise might hurt profits.

Solid Investments Aid Duke Energy (DUK), Weak Solvency Woes
Per the Zacks analyst, Duke Energy's investment in infrastructure and expansion projects tend to boost its long-term growth prospects. However, its weak solvency position remains a bottleneck.

CSX (CSX) Rides on Dividends & Buyback Amid Rising Expenses
The Zacks analyst likes the shareholder-friendly measures adopted by CSX. However, rising operating expenses are concerning as they are likely to keep the bottom line under pressure.

High Roto-Rooter Sales Aid Chemed (CHE) Amid Staffing Issues
The Zacks analyst is upbeat about Chemed's robust Roto-Rooter branch residential and commercial revenues. However, the segment continues to be faced with difficulties related to increasing manpower.

Tavneos Fuel ChemoCentryx (CCXI), Set to be Acquired by Amgen
Per the Zacks Analyst, Tavneos fuel ChemoCentryx's performance amid competition in the target market. ChemoCentryx is set to be acquired by Amgen in the fourth quarter of 2022.

PayPal (PYPL) Benefits From Increasing Total Payment Volume
Per the Zacks analyst, PayPal's total payment volume is rising owing to solid adoption of Venmo and merchant services. Further, growing momentum across PayPal Checkout experiences is positive.

Fastenal (FAST) Gains From E-Commerce, Inflation Hurts
Per the Zacks analyst, continued enhancement of daily sales through e-commerce will drive Fastenal's growth. However, inflationary pressures, tight supply chains and labor shortages are risks.

New Upgrades

Arch Capital (ACGL) Set to Grow on Improving Premium
Per the Zacks analyst, Arch Capital is set to grow on solid Insurance and Reinsurance business driving improvement in premiums. However, exposure to cat loss inducing underwriting volatility concerns.

Murphy USA (MUSA) Gains from Proximity to Walmart Stores
The Zacks analyst likes the proximity of Murphy USA's fuel stations to Walmart supercenters and the consistent traffic that these stores attract, thereby driving above-average fuel sales volume.

Electrical & Electronic Solutions Strength Aids WESCO (WCC)
Per the Zacks analyst, strong momentum across non-residential construction, original equipment manufacturer, and industrial businesses is benefiting WESCO's Electrical & Electronic Solutions segment.

New Downgrades

Supply-Chain Constraints Hurt Stanley Black & Decker (SWK)
Per the Zacks analyst, Stanley Black & Decker is persistently facing supply-chain woes and logistics issues, which might weigh on its margins and profitability. Forex woes are an added concern.

Intel (INTC) Plagued by Component Shortage, Stiff Competition
Per the Zacks analyst, component shortage in Client Computer Group and Datacenter Group is hurting Intel's revenues, while intense competition in server markets is further compounding problems.

Church & Dwight's (CHD) Gross Margin Hurt by High Costs
Per the Zacks analyst, Church & Dwight is seeing shrinking gross margin. Its second-quarter gross margin fell 220 basis points due to higher raw material, manufacturing and distribution costs.

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
The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
Blackstone Inc. (BX) : Free Stock Analysis Report
Duke Energy Corporation (DUK) : Free Stock Analysis Report
AnheuserBusch InBev SANV (BUD) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
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