Top Analyst Reports for Amazon, Home Depot & PetroChina

Wednesday, February 23, 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 Amazon.com, Inc. (AMZN), The Home Depot, Inc. (HD), and PetroChina Company Ltd. (PTR). 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 Amazon have outperformed the Zacks Internet - Commerce industry over the past two-year period (+49.5% vs. -24.5%). Amazon’s fourth quarter results were driven by solid Prime and AWS momentum, per the Zacks analyst. Ultrafast delivery services and expanding content portfolio were beneficial.

Moreover, strengthening relationships with third-party sellers was a positive. Strong momentum across Amazon Music was another tailwind. Its strengthening AWS services portfolio and growing adoption rate contributed, as well. Also, improving Alexa skills along with robust smart home products offerings were tailwinds.

Amazon’s strong global presence and solid momentum among small and medium businesses remain positives. Growing capabilities in grocery, pharmacy, Amazon Care, Kuiper and Zoox remain other positives. However, growing expenses due to supply-chain constraints and labor supply shortages remain concerns.

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

Shares of Home Depot have outperformed the Zacks Building Products – Retail industry over the past year (+21.7% vs. +20.9%). The Zacks analyst believes that the stock’s momentum can be attributed to the robust surprise trend, which continued in fourth-quarter fiscal 2021.

The company reported its seventh straight quarter of earnings and sales beat in the fiscal fourth quarter. Results gained from strong demand for home-improvement projects, robust housing market trends and ongoing investments. The company also benefited from continued strength in both Pro and DIY categories as well as digital momentum.

Its interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic for the past few quarters, aiding digital sales. However, the company reported soft gross margins in Q4, driven by higher cost of goods sold. Supply chain headwinds also marred results to some extent.

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

Shares of PetroChina have outperformed the Zacks Oil and Gas - Integrated – International industry over the past year (+44.3% vs. +30.5%). The Zacks analyst believes that with higher energy prices supporting the state-run giant's exploration and production segment, the stock is expected to gain further. As is evident from the nine-month results, PetroChina's upstream segment has been benefiting from the turnaround in oil prices. The unit posted an operating income of RMB 58.4 billion, nearly trebling from the year-ago profit.

Being one of the two Chinese integrated oil firms, PetroChina is already well-positioned to capitalize on the country’s growing natural gas demand. The company’s natural gas business offers lucrative growth prospects in the coming years as China moves from coal to natural gas. Consequently, PetroChina is viewed a preferred energy firm to own now.

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

Other noteworthy reports we are featuring today include GlaxoSmithKline plc (GSK), Deere & Company (DE) and Mitsubishi UFJ Financial Group, Inc. (MUFG).

Mark Vickery
Senior Editor

 

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

Prime Momentum & Growing AWS Adoption Benefit Amazon (AMZN)

Focus on Pro Customers to Aid Home Depot's (HD) Top Line

PetroChina (PTR) to Benefit from Natural Gas Business

Featured Reports

Glaxo's (GSK) New & Specialty Drugs Driving Sales
Glaxo's new and specialty products like Dovato, Nucala, Trelegy Ellipta, Shingrix are driving sales, making up for a lower sales of established drugs due to generic erosion, per the Zacks analyst.

Focus on Permian Basin, Cost Management Aid Occidental (OXY)
Per the Zacks analyst Occidental's efficient cost management and expansion of its operation Permian Basin through acquisition of Anadarko will drive its performance over the long run.

Deere (DE) Rides on Farm Equipment Demand Amid Higher Costs
Per the Zacks analyst, Deere will gain from increased farm equipment demand driven by higher commodity prices despite escalating material and logistic costs.

Generac (GNRC) Rides on Product Portfolio & Key Acquisitions
Per the Zacks analyst, Generac is benefitting from strong demand for its products and synergies from acquisitions. However, ongoing pandemic-induced supply chain troubles remain a concern.

Jabobs (J) Benefits From Strategic Buyouts, Costs High
Per the Zacks analyst, the strategic acquisitions and focus on infrastructure bode well for Jacobs. However, higher medical costs and IT investments pose risk.

Bruker's (BRKR) CALID Arm Grows Amid Declining BioSpin Sales
The Zacks analyst is optimistic about the robust performance by Bruker's CALID arm on strength in life science mass spectrometry business. Yet, fall in BioSpin revenues is concerning.

Business Upgrades Aid Mitsubishi UFJ (MUFG) Amid Cost Woes
Per the Zacks analyst, Mitsubishi UFJ is focused on several strategies under its medium-term business plan, with support from strong liquidity. However, higher costs are a threat to its profitability.

New Upgrades

Increasing Transaction Fees Aid Cboe Global Markets (CBOE)
Per the Zacks analyst, Cboe Global is set to grow on rising transaction fees driven by trading volume growth (given global reach and strength in proprietary products) and non-transactional revenues.

Kinsale Capital (KNSL) to Grow on Solid Excess and Surplus Market
Per the Zacks analyst, Kinsale Capital is set to grow on the strength of its Excess and Surplus Market on the back of improved margins and lower loss ratios, which drives strong underwriting results.

Dividends, Logistics & Intermodal Units Aid Schneider (SNDR)
The Zacks analyst lauds the company's efforts to pay dividends to its shareholders even in these unprecedented times. Robust performances of the Intermodal and Logistics units are encouraging too.

New Downgrades

High SG&A Costs a Concern for Children's Place (PLCE)
Per the Zacks analyst, rise in SG&A costs is a concern for Children's Place. Management expects fourth-quarter fiscal 2021 SG&A expenses to be approximately $118 million.

Supply Chain Weakness Hurts Overstock.com's (OSTK) Prospects
Per the Zacks analyst, Overstock.com is suffering from pandemic induced supply chain disruption. Stiff competition, particularly from Wayfair, its nearest peer in home furnishing, is a concern.

Data Security Threats, Compliance Risks Ail Ecolab (ECL)
The Zacks analyst is worried about Ecolab's business being subjected to various environmental laws and regulations. Data security breaches posing a risk of exposing sensitive data is an added issue.

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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
GlaxoSmithKline plc (GSK) : Free Stock Analysis Report
 
Deere & Company (DE) : Free Stock Analysis Report
 
The Home Depot, Inc. (HD) : Free Stock Analysis Report
 
PetroChina Company Limited (PTR) : Free Stock Analysis Report
 
Mitsubishi UFJ Financial Group, Inc. (MUFG) : Free Stock Analysis Report
 
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