Top Research Reports for Visa, Adobe & TotalEnergies
Thursday, December 28, 2023
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 Visa Inc. (V), Adobe Inc. (ADBE) and TotalEnergies SE (TTE). 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 >>>
Visa’s shares have outperformed the Zacks Financial Transaction Services industry over the past year (+27.3% vs. +23.7%). The company’s stock performace is consistently driven by strategic acquisitions and alliances fostering long-term growth.
Visa’s fourth quarter fiscal 2023 earnings beat estimates, fueled by increased payments and sustained investments in technology. The ongoing shift to digital payments is advantageous for Visa, with strong domestic volumes supporting overall performance. A robust cash position enables the company to enhance shareholder value.
However, elevated operating expenses pose margin challenges. Increased client incentives may impact the top line. Additionally, it is witnessing a declining cash volume from the Asia Pacific and CEMEA regions. As such the stock warrants a cautious stance.
(You can read the full research report on Visa here >>>)
Shares of Adobe have outperformed the Zacks Computer - Software industry over the past year (+81.5% vs. +60.4%). The company’s Creative Cloud, Document Cloud and Adobe Experience Cloud products drove the top-line growth. Further, rising subscription revenues and solid momentum across the mobile apps were positives.
Growth in emerging markets, robust online video creation demand and solid adoption of Acrobat are tailwinds. The Zacks analyst remain optimistic about Adobe’s market position, compelling product lines, continued innovation, strategic acquisitions and solid adoption of cloud applications. Also, the company’s growing generative AI efforts remain a plus.
However, the ongoing tensions between Russia and Ukraine remain headwinds for Digital Media segment. Also, high acquisition expenses do not bode well for its margin expansion.
(You can read the full research report on Adobe here >>>)
Shares of TotalEnergies have outperformed the Zacks Oil and Gas - Refining and Marketing industry over the past year (+14.9% vs. +12.2%). The company continues to benefit from startups, well-spread LNG assets and an expanding upstream portfolio that has exposure to rapidly growing hydrocarbon-producing regions. Multi-energy portfolio acts as a tailwind for TotalEnergies.
The company streamlines its portfolio through acquisitions and divestitures. TotalEnergies is steadily investing to expand its renewable operation and aims to achieve net-zero emissions by 2050.
However, the company’s production has been impacted by security-related production cuts in some regions. The company remains exposed to acquisition-related risks as these assets contribute a sizable volume to production. A natural decline in production and its withdrawal from Russia might affect profitability.
(You can read the full research report on TotalEnergies here >>>)
Other noteworthy reports we are featuring today include General Electric Co. (GE), Schlumberger Ltd. (SLB) and Waste Management, Inc. (WM).
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
Visa (V) Rides On Growing Cross Border Volume, Expenses High
Adobe (ADBE) Rides on Growing Adoption of Cloud Applications
Expanding LNG & Clean Energy Assets Aid TotalEnergies (TTE)
Featured Reports
Aerospace Segment Aids General Electric (GE) Amid Forex Woes
Per the Zacks analyst, General Electric's Aerospace segment is driven by robust demand for commercial engines and services. However, foreign exchange headwinds remain concerning for the company.
SLB to Benefit From Increasing Oilfield Service Demand
Per the Zacks analyst, SLB is well-poised to capitalize on the rising oilfield service demand, as high oil prices may increase drilling activities. Yet, its huge debt load is concerning.
Focused Differentiation Aids Waste Management (WM) Liquidity Low
Per the Zacks analyst, differentiation through capitalization of extensive assets ensures long-term profitable growth for Waste Management. Low liquidity a concern.
Robust CAG Business Aids IDEXX (IDXX), Cost Woes Remain
The Zacks Analyst is impressed with IDEXX's Companion Animal Group (CAG) Diagnostics recurring revenues gaining from the sustained benefits of key execution drivers. Yet, macro woes are a concern.
Solid Business Strategies Aid Lennar (LEN), High Costs Hurt
Per the Zacks analyst, solid execution of operating and land lighter strategies, reflecting increased deliveries and new orders, bode well for Lennar. Yet, high costs and economic uncertainties ail.
Ventas (VTR) to Ride on Healthy Senior Housing Fundamentals
Per the Zacks Analyst, Ventas is well-poised to benefit from the rise in senior citizens' healthcare expenditure and favorable outpatient visit trends. However, high interest rates are a key woe.
Amicus (FOLD) Banks on Galafold, Overdependence a Concern
Per the Zacks analyst, Amicus' lead drug, Galafold, has shown solid uptake since launch. The drug has shown blockbuster potential. However, overdependence on Galafold for revenues remains a concern
New Upgrades
Rising Premiums & Cash Flows Aid Cincinnati Financial (CINF)
Per the Zacks analyst, rising premiums from strong Commercial and Personal lines segment poise Cincinnati Financial well for growth. Growing cash flows help it to engage in shareholder-friendly moves.
Solid Excess & Surplus Lines of Business Aids Kinsale (KNSL)
Per the Zacks analyst, Kinsale Capital is set to grow on its focus on the excess and surplus lines of business aiding high retention rates arising from renewals, improved margins and lower loss ratios
Solid Demand Momentum Driving Itron's (ITRI) Performance
Per the Zacks analyst, higher recurring services and operational execution is driving Itron's performance. Increasing demand for electric vehicles and distributed energy resource management bode well.
New Downgrades
Waters (WAT) Suffers From Weakening Momentum in Asian Market
Per the Zacks analyst, weakness in Asian market due to soft demand conditions in China, is hurting Waters growth prospects.
Diageo (DEO) Witnesses Cost Inflation & Lower Volumes
Per the Zacks analyst, Diageo is witnessing cost inflation, which has been weighing on the company's gross margin performance. It has been witnessing lower volumes for a while now.
Dismal Contract Sales Hurt Marriott Vacations (VAC) Prospects
Per the Zacks analyst, Marriott Vacations operations are likely to be hurt by dismal contract sales and fall in volume per guest. Also, uncertain macro environment and high costs are a headwind.
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General Electric Company (GE) : Free Stock Analysis Report
Visa Inc. (V) : Free Stock Analysis Report
Schlumberger Limited (SLB) : Free Stock Analysis Report
Waste Management, Inc. (WM) : Free Stock Analysis Report
Adobe Inc. (ADBE) : Free Stock Analysis Report
TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report
