Friday, April 26, 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 Visa (V), Boeing (BA) and Coca-Cola (KO). 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 >>>
Buy-ranked Visa’s shares have outperformed the Zacks Financial Transaction Services industry in the past year, gaining +27.8% vs. a +25.2% increase. Visa’s second-quarter fiscal 2019 earnings beat estimates and was increased year over year.
The Zacks analyst thinks the company is gaining from consistent growth in payments volume, cross-border volume and processed transactions, and a lower tax rate. Numerous strategic acquisitions and alliances, technology upgrades and effective marketing have paved the way for long-term growth and consistent increase in revenues.
Visa is well poised to gain from growing electronic payment processing and a solid brand name. Its strong capital position enables investments in business. Nevertheless, high client incentives and operating expenses, and foreign exchange volatility might put pressure on margins.
(You can read the full research report on Visa here >>>).
Shares of Boeing have gained +12.3% in the past year, outperforming the Zacks Aerospace & Defense industry, which has increased +1.8% during the same time period. Boeing's first-quarter 2019 earnings and revenues surpassed their respective expectations.
However, both the metrics declined on a year-over-year basis. Also, its commercial business suffered a major setback in the first quarter. The Zacks analyst thinks this downturn can be attributed to lower 737 deliveries as 737 Max jets were grounded across the world following two fatal crashes in the recent past. Considering the solid prospects of the global commercial aviation services market, the company has bought KLX Aerospace in recent past.
The company is the largest aircraft manufacturer in the world. Further, its strategic partnership with Embraer, once completed, is expected to strengthen Boeing’s commercial business against its arch rival Airbus.
(You can read the full research report on Boeing here >>>).
Buy-ranked Coca-Cola’s shares have gained +10.4% in the past year, outperforming the Zacks Soft Drinks Beverages industry which has remained flat over the same period. The Zacks analyst thinks this is largely attributable to the effective execution of strategies to evolve as a consumer-centric total beverage company. This bolstered the company’s quarterly performances as evident from a robust surprise trend.
First-quarter 2019 marked its seventh positive earnings surprise in the last eight quarters and seventh straight sales beat. Top and bottom lines benefited from ongoing productivity efforts and disciplined growth strategies along with robust performance across all segments. Further, innovation and investment in core categories and brands have been the key focus area for Coca-Cola, which has led to the expansion of retail value share.
Moreover, its transformative global re-franchising initiatives are expected to boost margins. However, the company expects adverse currency rates to significantly hurt comparable revenues and operating income in the second quarter and 2019.
(You can read the full research report on Coca-Cola here >>>).
Other noteworthy reports we are featuring today include Prologis (PLD), MetLife (MET) and O’Reilly (ORLY).
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>
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
Increasing Revenues, Solid Balance Sheet Aid Visa (V)
Strategic JV with Embraer to Aid Boeing (BA) Amid 737 Woes
Investments & Innovation Power Coca-Cola (KO)
Business Restructuring, Revenue Growth Aids MetLife (MET)
Per the Zacks analyst, exit from the U.S Retail unit and closure of UK Wealth Management business has freed MetLife from high-risk, non-core operations.
Store Openings Boost O'Reilly (ORLY) Amid Expense Woes
Per the Zacks analyst, O'Reilly is expanding its presence in contiguous and scarcely populated markets through new stores. However, rising expenses to maintain stores are hurting the profit margin.
Diversified Revenue Aids Fifth Third (FITB), High Costs A Woe
The covering analyst believes Fifth Third's growth has been aided by diversified revenue sources, easing margin pressure and rising loans & deposit balances. However, higher expenses are a headwind.
Product Demand & Buyouts Aid Stanley Black (SWK), Costs Ail
Per a Zacks analyst, Stanley Black gains from high demand for Craftsman, Lenox, Irwin and DeWalt FlexVolt products.
TOP Strategy Aids Citizens Financial (CFG), Legal Costs a Woe
Per the Zacks analyst, Citizens Financial's "Tapping Our Potential" (TOP) initiatives are expected to boost earnings performance in 2019.
Growth in User Base, Engagement Levels Aid Snap (SNAP)
Per the Zacks analyst, Snap's strategy to add features to Snapchat including games is helping the company grow user base and engagement levels and making the platform more attractive.
MGIC Investment (MTG) Set to Grow on Solid Insurance in Force
Per the Zacks analyst, MGIC Investment is poised for growth banking on improving insurance in force, declining delinquency, lower claims payments and improving housing market fundamentals.
High Industrial Real Estate Demand to Drive Prologis (PLD)
Per the Zacks analyst, Prologis is poised to benefit from high demand for industrial real estate space amid the e-commerce boom and healthy levels of consumer spending.
Solid Uptake of InviSalign Aids Align Technology (ALGN)
The Zacks analyst is bullish on Align Technology's strong InvisAlign growth prospects in North America and internationally, particularly the Asia-Pacific and EMEA regions.
System Test Business, Design Wins Benefit Teradyne (TER)
Apart from solid execution, the Zacks analyst believes robust System Test demand, opportunities in the high-growth memory test market and continuous design wins are positives for Teradyne.
High Funding Costs, Tight Spreads Ail AGNC Investment (AGNC)
Per the Zacks analyst, unfavorable funding dynamics and compressed spreads will impact AGNC Investment's performance. The company is also likely to slash its monthly dividends.
Weak Consumer Demand & Tough Competition Hits Cypress (CY)
The Zacks analyst believes that weak demand in the consumer end market could impact sales. Increasing competition in the auto market and ongoing trade tension are other concerns.
Trinity Industries (TRN) Stung by High Operating Expenses
The Zacks analyst is worried about high operating expenses, which are hurting the bottom line. Subdued operating profits at the Rail Products Group are also a concern.
Visa Inc. (V) : Free Stock Analysis Report
Prologis, Inc. (PLD) : Free Stock Analysis Report
O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report
MetLife, Inc. (MET) : Free Stock Analysis Report
Coca-Cola Company (The) (KO) : Free Stock Analysis Report
The Boeing Company (BA) : Free Stock Analysis Report
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