Top Analyst Reports for S&P Global, Sony & 3M
Wednesday, August 10, 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 S&P Global Inc. (SPGI), Sony Group Corporation (SONY), and 3M Company (MMM). 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 >>>
S&P Global shares have declined -9.5% over the past year against the broad market's -8.3% decline, reflecting the data vendor's exposure to an uncertain macroeconomic environment. While the company is faced with a number of near-term challenges, it is well placed to gain from the growing demand for business information services. Buyouts help innovate, increase differentiated content and develop new products. Effective management execution has helped it generate solid cash flow which is utilized for growth initiatives. Dividend payments and share buybacks boost investors’ confidence and positively impact earnings per share.
(You can read the full research report on S&P Global here >>>)
Sony shares have declined -16.4% over the past year against the Zacks Audio Video Production industry’s decline of -19.8%. The Zacks analyst believes that due to weak macro-economic conditions, the company trimmed its operating income guidance for fiscal 2022. Operating income is now projected to decline 8% against earlier projected decline of 3.5%.
The company expects operating margin for the fiscal year to be likely affected by decline in G&NS segment operating income. Stiff rivalry and high cost of goods sold pose concerns. However, Q1 performance gained from increases in revenues from Music and Pictures’ segments. It remains focused on the premium segment of the branded products market to maximize growth.
For fiscal 2022, the company now expects sales to improve 16% due to higher Music, Pictures and E&TS segment sales. Strategic acquisitions and joint ventures bode well in the long haul. The company continues to expect 18-million-unit sales for its PlayStation 5.
(You can read the full research report on Sony here >>>)
3M’s shares have declined -23.2% over the past year against the Zacks Diversified Operations Services industry’s decline of -20.4%. The Zacks analyst believes supply-chain disruptions, raw material and logistics cost inflation are weighing on 3M’s operations. Foreign-currency headwinds are impacting the company’s top line.
The company has reduced its sales and earnings forecast for 2022. Due to these headwinds, shares of the company have lost 17% so far this year. However, strong demand across most end markets is supporting 3M’s growth. The company’s pricing actions and restructuring initiatives are supporting its margin performance.
Improvement in abrasives, electrical markets, roofing granules, automotive aftermarket and industrial adhesives businesses bode well for the company. Strength in separation and purification business, owing to strong demand for biopharma filtration solutions for COVID-related vaccines is driving the Healthcare segment’s performance.
(You can read the full research report on 3M here >>>)
Other noteworthy reports we are featuring today include Northrop Grumman Corporation (NOC), Paychex, Inc. (PAYX), and Shopify Inc. (SHOP).
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
IHS Markit Buyout Ups S&P Global (SPGI) Despite Low Liquidity
Higher Music & Pictures Sales Benefit SONY Amid Rising Costs
End Market Strength Aids 3M (MMM) Amid Supply-Chain Woes
Featured Reports
Strong Demand Aids Northrop (NOC), COVID Impacts Woe
Per the Zacks Analyst, strong demand for defense products tend to aid Northrop's growth. Yet, a tight labor market and extended material lead times due to COVID-19 impacts might hurt the stock.
Paychex (PAYX) Gains From Flock Buyout, Rising Costs Ail
Per the Zacks analyst, the Flock acquisition has brought a benefits administration software capable of delivering a suite of digital services to Paychex's portfolio. Rising expenses remain a concern.
Product Rollouts & Growing Merchant Base Aid Shopify (SHOP)
Per the Zacks analyst, Shopify is benefiting from products like Shopify Shipping, Shopify Payments and Shopify Capital solutions. New merchant friendly applications are also driving growth.
Solid Customer Demand Drives Archer Daniel's (ADM) Growth
Per the Zacks analyst, Archer Daniel's is gaining from solid demand for majority of its products which has been driving growth in all its segments. It expects higher year over year performance in Q3.
AIG Benefits From Strong Revenues and Cost-Control Measures
Per the Zacks analyst, higher premiums combined with rate hikes in the global commercial business are driving revenues. Cost-saving efforts are aiding margins.
Solid Top Line, Strong Cash Flows Aid American Financial (AFG)
Per the Zacks analyst, its strong revenues driven by higher net investment income, net earned premiums have led to significant growth. Moreover, its healthy balance sheet should drive long-term growth
Organic Growth Aids Northern Trust (NTRS), High Cost Ails
Per the Zacks analyst, growth in loans balances will aid the Northern Trusts' NII in the near term. Yet, an increase in expenses trend on inflation and personnel hires will hinder bottom-line growth.
New Upgrades
Solid Top Line, Strong Cash Flows Aid American Financial (AFG)
Per the Zacks analyst, its strong revenues driven by higher net investment income, net earned premiums have led to significant growth. Moreover, its healthy balance sheet should drive long-term growth
Sustained Demand for ShockWave's (SWAV) IVL Driving Growth
Per the Zacks analyst, sustained clinical acceptance and penetration of IVL is encouraging for ShockWave's prospect. Robust R&D efforts along with solid commitment clinical studies raise optimism.
Rhopressa, Rocklatan Fuel Aerie (AERI) Amid Competition
Per the Zacks Analyst, ophthalmic drugs Rhopressa and Rocklatan, fuel Aerie's performance amid stiff competition in the targeted market. The company's pipeline progress has also been impressive.
New Downgrades
Nu Skin (NUS) Gross Margin Hurt by Unfavorable Currency Rates
Per the Zacks analyst, Nu Skin's gross margin is hurt by adverse currency rates. Its second-quarter gross margin contracted 200 basis points due to unfavorable product mix and foreign currency rates.
High Energy, Liquid Asphalt & Other Costs Ail Vulcan (VMC)
Per the Zacks analyst, Vulcan's earnings are likely to be impacted by higher commodity inflation, specifically energy, liquid asphalt and natural gas.
High Inflation Hurts Cheesecake Factory's (CAKE) Prospects
Per the Zacks analyst, Cheesecake Factory's operations are likely to be affected by commodity inflation and a tight labor market. Also pandemic-induced supply chain disruptions is a persistent concern
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Northrop Grumman Corporation (NOC) : Free Stock Analysis Report
Paychex, Inc. (PAYX) : Free Stock Analysis Report
3M Company (MMM) : Free Stock Analysis Report
Shopify Inc. (SHOP) : Free Stock Analysis Report
S&P Global Inc. (SPGI) : Free Stock Analysis Report
Sony Corporation (SONY) : Free Stock Analysis Report
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