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Top Research Reports for PepsiCo, QUALCOMM & HSBC

·5 min read

Thursday, August 11, 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 PepsiCo, Inc. (PEP), QUALCOMM Incorporated (QCOM) and HSBC Holdings plc (HSBC). 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 >>>

PepsiCo’s shares have outperformed the Zacks Beverages - Soft drinks industry over the past year (+16.8% vs. +9.2%) on the back of resilience and strength of global beverage and convenient food businesses. It expects to benefit by delivering convenience, variety and value proposition to customers through its brands. It raised its revenue view for 2022.

However, PepsiCo witnessed margin pressures in the second quarter driven by impacts of supply-chain disruptions and inflationary labour, transportation and commodity costs. PEP anticipates incremental input cost inflation for the balance of 2022. Adverse currency rates also remain headwinds.

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

QUALCOMM shares have outperformed the Zacks Wireless Equipment industry over the past year (+3.7% vs. -5.4%) as the company continues to enjoy healthy traction in EDGE networking solutions across diverse sectors.

The buyout of Arriver will bolster its ability to deliver fully integrated Advanced Driver Assistance System solutions to automakers. The company is well-positioned to benefit from solid 5G traction with greater visibility and diversified businesses to meet its long-term revenue targets.

However, Qualcomm faces intense competition from low-cost chip manufacturers. High research and development costs are expected to dent margins, while global chip shortage due to supply-chain disruptions is a headwind. It is susceptible to risks arising from lower handset shipments, especially in China.

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

HSBC’s shares have outperformed the Zacks Banks - Foreign industry over the past year (+22.8% vs. -5.4%). The company’s strong capital position, initiatives to strengthen digital capabilities, an extensive network and improvement in operating efficiency through business restructuring will likely keep aiding growth.

Exiting from the U.S. and French retail banking operations is expected to help HSBC focus on Asia. In sync with this, the acquisition of AXA Singapore insurance assets will expand business in the region. Although initiatives to improve market share in the U.K. and China will continue to support financials, these might lead to a rise in costs, which will hurt HSBC’s profits. Yet, HSBC’s product and service leadership in many of the cross-border banking services helps it in widening its customer base.

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

Other noteworthy reports we are featuring today include ServiceNow, Inc. (NOW), Automatic Data Processing, Inc. (ADP), and Illumina, Inc. (ILMN).

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

PepsiCo's (PEP) Investments in Business Drive the Top Line

Qualcomm (QCOM) Rides on 5G Traction, Diversified Businesses

Expansion Efforts, Restructuring to Aid HSBC Holdings (HSBC)

Featured Reports

Growing Customer Base & Partnerships Aid ServiceNow (NOW)
Per the Zacks analyst, ServiceNow benefits from rising adoption of its workflows from companies undergoing digital transformation. Also, strategic alliances with the likes of Microsoft are a tailwind.

Strong Business Model Benefits ADP Despite Low Current Ratio
Per the Zacks analyst, a solid business model, high recurring revenues, healthy margins and low capital expenditure boost ADP. However, a weak current ratio (a measure of liquidity) bothers.

High NovaSeq Demand, Galleri Test Sales Aid Illumina (ILMN)
The Zacks analyst is encouraged by Illumina's growing number of NovaSeq shipments and consumables orders. Sales contributions GRAIL's Galleri test fees also seem promising.

D.R. Horton (DHI) Banks on Growth Strategy & Cost Synergy
Per the Zacks analyst, D.R. Horton's industry-leading market share, solid acquisition strategy, well-stocked supply of land, lots and homes, and affordable product offerings abode well.

Favorable GRC Lift Edison International (EIX), Wildfire Woe
Per the Zacks analyst, favorable outcomes from regulatory authorities on GRC (General rate Case) tend to boost Edison International growth. However wildfire risk in its service territories looms large

APA Corporation (APA) to Gain from Suriname Portfolio
The Zacks analyst believes that APA's significant drilling success in Suriname points to significant cash flow potential but is worried about the oil explorer's high debt burden.

Acadia's (ACAD) Sole Drug Nuplazid Aid Growth Amid Competition
Per the Zacks analyst, only marketed drug Nuplazid is witnessing higher sales and a strong uptake since approval. However, sole dependence on Nuplazid for revenues remains a headwind

New Upgrades

Per the Zacks analyst, strong traction of Carlisle's Construction Mate
Per the Zacks analyst, strong traction of Carlisle's Construction Materials segment, fueled by reroofing market in the United States and growth in the architectural metals platform is likely to drive

Paylocity Holding (PCTY) Benefits From Growing Customer Base
Per the Zacks Analyst, Paylocity Holding is benefiting from its differentiated employee strategy, comprehensive product offerings and on-demand pay facility, that are helping it win new customers.

Sturdy Comps Run to Fuel Grocery Outlet's (GO) Top Line
Per the Zacks analyst, Grocery Outlet's opportunistic purchasing, marketing efforts and new product offerings facilitate comparable-store sales growth. Second-quarter comparable-store sales rose 11.2%

New Downgrades

NVIDIA (NVDA) Hurt by Weakening Demand, Supply Chain Issues
Per the Zacks analyst, NVIDIA is hurt by weakening demand for its gaming chips and ongoing supply-chain issues which is negatively impacting its data center end market business.

Escalating Costs & High Debt Hurt Community Health (CYH)
Per the Zacks analyst, the company's cost woes can put margins under pressure. Rising debt level remains a concern as it flares up interest expenses.

Strength in Global Data Services Aid Intercontinental (ICE)
Per the Zacks analyst, Intercontinental is set to grow on solid portfolio, wide range of risk management services, cost synergies and solid capital position. Yet, rising expenses might weigh on margin


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
 
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
 
Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report
 
PepsiCo, Inc. (PEP) : Free Stock Analysis Report
 
Illumina, Inc. (ILMN) : Free Stock Analysis Report
 
ServiceNow, Inc. (NOW) : Free Stock Analysis Report
 
HSBC Holdings plc (HSBC) : Free Stock Analysis Report
 
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