Monday, September 30, 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 Inc. (V), The Procter & Gamble Company (PG) and The Coca-Cola Company (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 >>>
Visa’s shares have outperformed the Zacks Financial Transaction Services industry over the past one-year period (+15.4% vs. +12.5%). The Zacks analyst believes that numerous acquisitions and alliances plus technology upgrades and effective marketing have paved the way for long-term growth and consistent increase in revenues.
Notably, the acquisition of Visa Europe is a long-term growth strategy for the company. Its international business has been expanding and adds diversification benefits. Its strong capital position is another positive.
However, high client incentives and expenses weigh on its operating margin. Also, adverse foreign exchange volatility imparts instability to the company’s earnings.
(You can read the full research report on Visa here >>>)
Shares of Procter & Gamble have gained 48.9% in the past one-year, outperforming the Zacks Soap and Cleaning Materials industry’s rise of 27.5%. The Zacks analyst believes that the company’s earnings is benefitting from its ongoing productivity efforts, while strong organic sales growth backed by higher shipment volumes and favorable price/mix boosted the top line.
The company also provided upbeat guidance for fiscal 2020. It is gaining from focus on product improvement, packaging and marketing initiatives, and productivity and cost-savings plan.
However, adverse foreign currency rates are hurting the company’s top and bottom lines. Moreover, global economic challenges and stiff competition poses concern.
(You can read the full research report on Procter & Gamble here >>>)
Coca-Cola’s shares have gained 17.4% over the past one-year period, outperforming the Zacks Beverages - Soft Drinks industry’s rise of 11.4% over the same period. The Zacks analyst believes that Coca-Cola has done exceedingly well in the past year, owing to the execution of strategies to evolve as a consumer-centric total beverage company.
Ongoing productivity efforts and disciplined growth strategies as well as robust performance across segments are aiding its top and bottom lines. Its global re-franchising initiatives are also expected to boost margins.
However, it expects adverse currency rates to significantly mar comparable revenues and operating income in the third quarter and 2019.
(You can read the full research report on Coca-Cola here >>>)
Other noteworthy reports we are featuring today include Wells Fargo & Company (WFC), BP p.l.c. (BP) and NVIDIA Corporation (NVDA).
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
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)
P&G's (PG) Productivity & Cost Savings Plan to Drive Profits
Investment & Innovation Show Coca-Cola's (KO) Core Strength
Sanofi (SNY) Diabetes Unit Weak, New Drugs to Drive Growth
The Zacks analyst believes that Sanofi has many new products and pipeline candidates that can drive long-term growth. Weak diabetes sales and generic competition for many drugs are headwinds.
Passenger Traffic Aids LATAM (LTM) Amid Currency Headwinds
The Zacks analyst is impressed by solid growth in LATAM's passenger traffic. However, depreciation of the Brazilian real and Argentinian peso is a matter of concern.
BP plc (BP) Banks on Upstream Projects Amid Oil Spill Woes
While the Zacks analyst is optimistic about BP's strong portfolio of upstream projects, the Gulf of Mexico oil spill incident of 2010 continues to affect the firm.
Interest Income Aids Wells Fargo (WFC), Legal Issues Linger
Per the Zacks analyst, organic growth remained a key strength at Wells Fargo, aided by rising interest income on loan growth.
New Strategic Acquisitions, Organic Growth Aid Bruker (BRKR)
The Zacks analyst is optimistic about Bruker's buyouts of Hain, RAVE and Alicona Imaging which have started to contribute to the top line strongly. Series of product launch drives organic growth.
KB Home (KBH) to Benefit from Returns-Focused Growth Plan
With solid Returns-Focused Growth plan and strong housing fundamental, KB Home's revenues and operating margin are expected to improve significantly in 2020 and beyond, per the Zacks analyst.
NVIDIA (NVDA) Banks on Turnaround in the Gaming Business
Per the Zacks analyst, the rising traction of GeForce laptops and RTX GPUs in the gaming market is a key growth driver for NVIDIA.
Systematic Investments to Aid American States Water (AWR)
Per the Zacks analyst, American States Water's systematic investments to strengthen aging infrastructure will act as tailwinds. In 2019, it expects to invest $115-$125 million in infrastructure.
Lithia's (LAD) Acquisition of Dealerships to Boost Prospects
Per the Zacks analyst, the recent acquisitions of Lincoln Morgantown and Hazleton Honda dealerships are expected to boost Lithia Motors' profitability and prospects going forward.
Solid Aerospace Business Drives United Technologies (UTX)
Per the Zacks analyst, impressive performance of United Technologies' aerospace business, driven by strength in its commercial aftermarket and military end markets will lend momentum to the company.
Weak Reserve Replacement to Hurt Royal Dutch Shell (RDS.A)
The Zacks analyst is concerned over Royal Dutch Shell's weak oil reserve replacement ratio of 53%, which indicates lack of adequate reserves to sustain its production over time.
Higher Costs, Lower Phosphate Demand to Hurt Mosaic (MOS)
Per the Zacks analyst, higher costs related to the impact of new tailings dam regulations in Brazil will weigh on Mosaic's margins. Lower expected phosphate demand in China is another concern.
Tariff War & Margin Woes Mar CommScope's (COMM) Growth Curve
Per the Zacks analyst, trade restrictions and tariff war pose significant threat to CommScope's top line, while higher operating expenses are likely to prove detrimental to margins and profitability.
Wells Fargo & Company (WFC) : Free Stock Analysis Report
Visa Inc. (V) : Free Stock Analysis Report
Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Coca-Cola Company (The) (KO) : Free Stock Analysis Report
BP p.l.c. (BP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research