Wednesday, November 22, 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), Marriott International, Inc. (MAR) and Parker-Hannifin Corp. (PH). 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 (+20.9% vs. +15.7%). The company’s stock prices has consistently outperformed the industry, driven by strategic acquisitions and alliances fostering long-term growth.
The 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 Marriott International have outperformed the Zacks Hotels and Motels industry over the year-to-date period (+40.6% vs. +22.9%). The company’s upside was backed by robust leisure demand and solid global booking trends.
Also, substantial RevPAR growth in international markets added to the upside. In the quarter, RevPAR for worldwide comparable system-wide properties increased 8.8% year over year. Also, the emphasis on expansion initiatives, digital innovation and the loyalty program bode well.
During the quarter, the company added 97 properties to its worldwide lodging portfolio. However, challenging macroeconomic conditions and high debt remain a concern. Earnings estimates for 2023 have declined in the past 30 days.
(You can read the full research report on Marriott International here >>>)
Shares of Parker-Hannifin have outperformed the Zacks Manufacturing - General Industrial industry over the year-to-date period (+51.1% vs. +12.0%). The company is benefiting from higher demand from distributors and end users across the oil and gas, material handling, cars and light trucks, and farm and agriculture markets in the North American region within the Diversified Industrial segment.
Higher volume across all businesses, especially the commercial and military aftermarket businesses bolstered the company’s Aerospace Systems unit. Synergies from the Meggitt buyout (September 2022) are also aiding the company. Benefits from the Win strategy are driving Parker-Hannifin’s margins. The company’s measures to add shareholder value hold promise.
However, the escalating cost of sales and rising selling, general and administrative expenses pose a threat to its bottom line. Foreign currency headwinds may dent PH’s top line. A weak liquidity position is also worrisome.
(You can read the full research report on Parker-Hannifin here >>>)
Other noteworthy reports we are featuring today include FedEx Corp. (FDX), América Móvil, S.A.B. de C.V. (AMX) and Agilent Technologies, Inc. (A).
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
Solid Demand & Expansion Effort Aid Marriott (MAR), High Debt Ail
Aerospace Systems Unit Aids Parker-Hannifin ( PH ), Costs Hurt
FedEx (FDX) Benefits From Dividends & Buyback, Expenses Ail
The Zacks analyst likes the shareholder-friendly measures adopted by FedEx. However, capital expenditures are concerning as they are likely to keep the bottom line under pressure.
America Movil (AMX) Benefits from Increasing Subscriber Base
Per the Zacks analyst, America Movil's performance is gaining from growing subscriber base. However, stiff competition and high debt load are major concerns.
Sluggishness in LSAG Segment Hurts Agilent Technologies (A)
Per the Zacks analyst, Agilent Technologies is suffering from weak Life Sciences & Applied Markets Group (LSAG) segment owing to soft market conditions in China and a sluggish pharma market.
Decent AUM & Organic Growth Aid Carlyle (CG), High Costs Ail
Per the Zacks analyst, Carlyle's decent AUM balances and organic growth support its top-line expansion. However, escalating expenses are likely to impede bottom-line growth.
Focus on R&D Aids Inspire Medical (INSP) in Stiff Competition
The Zacks analyst is upbeat about Inspire Medical's focus on research and development despite its operation in a highly competitive market.
RingCentral (RNG) Rides on Strong Portfolio, Partner Base
Per the Zacks analyst, RingCentral benefits from solid demand for its Unified Communications as a Service and contact center software-as-a-service solutions.
TreeHouse Foods (THS) Gains from Efficient Pricing Efforts
Per the Zacks analyst, TreeHouse Foods has been gaining from its pricing efforts. Net sales advanced 3.6% year over year in Q3, driven by favorable pricing actions undertaken to recover inflation.
Mobileye (MBLY) Rides High on ADAS Technology's Design Wins
The Zacks analyst is optimistic about Mobileye's Advanced Driver Assistance Systems (ADAS) Technology's design wins, which is likely to generate a $17 billion revenue pipeline through 2030.
UK Nod to CRISPR's (CRSP) Casgevy Gene Therapy Encouraging
Per the Zacks Analyst, the U.K. approval to CRISPR Therapeutics' Casgevy is a major scientific breakthrough as it marks the first ever regulatory authorization for a CRISPR/Cas9-based gene therapy.
Improved Menu Strategies & Expansion Plans Aid Brinker (EAT)
Per the Zacks analyst, Brinker is benefiting from improved menu pricing, a favorable menu item mix and sales leverage. Also, expansion plans and digital enhancements bodes well.
Seasonality & Strong Competition Ail UGI Corporation (UGI)
Per the Zacks analyst, UGI's seasonal business operations may reduce demand and adversely impact its overall performance. Strong competition from other clean sources may lower profitability.
JetBlue Airways (JBLU) Reels Under High Operating Expenses
The Zacks analyst is worried about the elevated expenses on fuel. High non-fuel unit costs represent another headwind at JetBlue.
RPC (RES) Likely to Suffer From Aggressive Capital Budget
Per the Zacks analyst, RPC is anticipated to face challenges due to its increased capital expenditure, impacting its profitability. Additionally, rising costs of revenues are a cause for concern.
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