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Top Analyst Reports for Procter & Gamble, Thermo Fisher & PayPal

Mark Vickery

Friday, November 29, 2019

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 Procter & Gamble (PG), Thermo Fisher (TMO) and PayPal (PYPL). 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 >>>

Procter & Gamble’s shares have outperformed the Zacks Soap and Cleaning Materials industry year to date (+30.9% vs. +20.9%). The Zacks analyst believes that Strong organic sales growth, backed by higher shipment volume and favorable price/mix, boosted the company’s top line.

The company’s solid first-quarter fiscal 2020 results, wherein both top and bottom lines not only surpassed the Zacks Consensus Estimate but also improved year over year, is driving the stock momentum. Again, ongoing cost-saving and productivity efforts cushioned margins and in turn the bottom line.

Impressive performance prompted management to provide an upbeat view for fiscal 2020. The company now projects all-in sales growth of 3-5% and core EPS growth of 5-10%. On the flip side, currency fluctuation remains concerning. Nevertheless, adverse impacts of the same are likely to be offset by slight gain from acquisitions and divestitures.

(You can read the full research report on Procter & Gamble here >>>)

Shares of Thermo Fisher have gained 7.5% in the past three months against the Zacks Medical Instruments industry’s rise of 7.2%. The Zacks analyst is looking forward to the company’s recent purchases of Brammer Bio in the field of Gene and Cell Therapy and an active pharmaceutical ingredient manufacturing facility from GlaxoSmithKline.

Thermo Fisher ended the third quarter of 2019 with better-than-expected numbers. Barring industrial and applied, the company saw strength in all three end markets too. Further, the company registered solid international performance with strong growth in Europe and Asia-Pacific including China. Also, a series of product launches with progress in precision medicine initiatives aided the company’s performance.

On the flip side, Thermo Fisher’s operating segments are getting impacted by unfavorable business mix. Competitive headwinds and escalating costs pose threat.

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

PayPal's shares have lost 6.8% over the past six months against the Zacks Internet Software industry's fall of 4.1%. The Zacks analyst believes that PayPal is driven by growth in total payments volume owing to Venmo and One Touch.

Also, increasing net new active accounts and strengthening customer engagement on the company’s platform are positives. Additionally, growing momentum of the company’s core peer to peer and merchant services remains positive.

However, declining eBay volume remains a headwind for the company’s total payment volume. Sale of the U.S. consumer credit receivables portfolio to Synchrony are risks to PayPal's top-line growth. Also, increasing competition from Square remains a major concern.

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

Other noteworthy reports we are featuring today include NextEra Energy (NEE), Petrobras (PBR) and Enterprise Products (EPD).

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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

P&G's (PG) Productivity & Cost Savings Plan to Aid Margins

End-Market Strength, APAC Sales Aid Thermo Fisher (TMO)

Portfolio Strength Benefits PayPal (PYPL) Amid Competition

Featured Reports

Investment in Infrastructure and Renewable Aid NextEra (NEE)

Per the Zacks analyst, NextEra's $36.6B investment to generate more electricity from renewable sources and expand its transmission and distribution lines will boost profitability.

Pre-Salt Reserves Boosts Petrobras (PBR), Debt Pile Hurts

Petrobras' interests in Brazil's attractive pre-salt oil reservoirs should boost its earnings outlook. However, the Zacks analyst is concerned over the company's huge debt load of $75.4 billion.

Enterprise (EPD) Rides on Midland & ECHO Storage Expansions

Per the Zacks analyst, Enterprise's Midland & ECHO oil storage expansion projects in the Permian will drive growth.

Merger Deal With BB&T to Aid SunTrust (STI), Rate Cuts a Woe

Per the Zacks analyst, loan growth along with SunTrust's merger deal with BB&T will aid revenues.

Workday (WDAY) Gains from HCM Capabilities & Cloud Platforms

Per the Zacks analyst, Workday's revenue growth continues to be driven by high demand for its HCM and financial management solutions.

Growing Merchant Base Benefits Shopify's (SHOP) Prospects

Per the Zacks analyst, Shopify is gaining from growing adoption of applications such as Shopify Shipping.

Amid End Market Weakness, Global Presence Aid Eaton (ETN)

Per the Zacks analyst Eaton's presence in 175 countries broadens its revenue base, amid weakness in end market conditions that compelled the company to lower organic growth outlook.

New Upgrades

Acquisitions, Solid Balance Sheet Aid First American (FAF)

Per the Zacks analyst, a number of acquisitions have helped First American to expand business and witness inorganic growth; a solid balance sheet enables investment in business.

Global Expansion & New Program Wins Benefits Plexus (PLXS)

Per the Zacks analyst, Plexus' is benefiting from global expansion of its footprint, new program wins and expanding manufacturing opportunities.

Loan Growth, Buyouts Aid Hilltop Holdings' (HTH) Financials

Per the Zacks analyst, Hilltop Holdings' focus on improving fee income, steady loan growth and a strong balance sheet position are likely to continue supporting profitability.

New Downgrades

End Market Weakness continues to Impact Analog Devices (ADI)

The Zacks analyst believes that China slowdown and end- market weakness could continue to impact Analog Devices' growth prospects. Also, macro uncertainty and geopolitical fears remain concerns.

Soft Animal Health Businesses to Hurt Central Garden (CENT)

Per the Zacks analyst, softness in animal health businesses is a concern for Central Garden & Pet. Management expects higher spending and challenges in animal health businesses to hurt bottom line.

Luminex Corporation (LMNX) Plagued by Weak Assay Revenues

Luminex Corporation's Assay revenues have recently fallen year over year. The Zacks Analyst is also apprehensive of the dull 2019 revenue guidance.

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Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report
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