Top Research Reports for Walmart, Linde & IBM
Thursday, March 28, 2024
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 Walmart Inc. (WMT), Linde plc (LIN) and IBM Corp. (IBM). 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 >>>
Walmart’s shares have outperformed the Zacks Retail - Supermarkets industry over the past year (+28.1% vs. +26.9%). The company is gaining from its highly diversified business with contributions from various segments, channels and formats.
Walmart has been benefiting from an increase in in-store and digital channel traffic due to its robust omnichannel initiatives. Store-fulfilled delivery sales jumped 50% in the fourth quarter of fiscal 2024.
The strategic focus on enhancing delivery services has also been rewarding, as evidenced by the constant increase in the market share for groceries. Upsides like these, along with growth in the advertising business, fueled Walmart’s fourth-quarter results and led to an encouraging fiscal 2025 view.
However, the retail landscape continues to be dynamic due to challenges like inflation and volatile consumer spending. High SG&A expenses are also a concern.
(You can read the full research report on Walmart here >>>)
Shares of Linde have outperformed the Zacks Chemical - Specialty industry over the past year (+35.0% vs. +30.9%). The company has an extensive range of industrial gas applications that are enhancing global productivity day by day. The company supplies a wide range of gases crucial for various sectors like energy, steel, healthcare, manufacturing and electronics.
Linde has long-term contracts with on-site customers, backed by minimum purchase requirements, ensuring stable cash flows. Linde’s substantial backlog ensures future earnings potential. The merger of Praxair and Linde has positioned the firm as an efficient player in the profitable industrial gas market, with a considerable size advantage.
However, rising competition for new projects in emerging markets raises concerns. The decrease in U.S. industrial production is also expected to reduce the demand for industrial gases, affecting profits. As such, the stock warrants a cautious stance.
(You can read the full research report on Linde here >>>)
IBM’s shares have outperformed the Zacks Computer - Integrated Systems industry over the past year (+53.9% vs. +42.9%). The company is poised to witness a healthy growth momentum driven by an optimum combination of a better business mix, improving operating leverage through productivity gains and steady R&D investments.
Higher demand for hybrid cloud, AI solutions and increased watsonx adoption by clients are tailwinds. IBM’s collaboration with SAP to tap generative AI technology within the retail industry will likely generate incremental revenues. Strong free cash flow generation provides the financial flexibility required for strategic investments in the evolving business environment.
However, frequent acquisitions have escalated integration risks. In addition, buyouts have negatively impacted the company’s balance sheet in the form of high levels of goodwill and net intangible assets. Foreign exchange volatility remains another concern.
(You can read the full research report on IBM here >>>)
Other noteworthy reports we are featuring today include Deere & Co. (DE), The Cigna Group (CI) and Duke Energy Corp. (DUK).
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
Walmart (WMT) Benefits from Impressive E-Commerce Operations
Linde (LIN) to Benefit From Substantial Project Backlogs
IBM Rides on Hybrid Cloud Traction, Higher Watsonx Adoption
Featured Reports
Deere (DE) Gains from Strong Demand Amid Elevated Costs
Per the Zacks analyst, strong replacement demand and growth in order levels are boosting Deere's growth. However, inflated material and labor costs are impacting the company's margins.
Cigna (CI) Benefits from Growing Membership, High Costs Hurt
Per the Zacks analyst, Cigna gains from improving membership leading to solid performances of Evernorth Health Services and Cigna Healthcare businesses. However, rising costs are a concern.
Investments Aid Duke Energy (DUK), Poor Financials May Hurt
Per the Zacks analyst, solid investments in infrastructure and expansion projects boost Duke Energy's growth. Yet the company's poor financial position might remain a concern for its investors
Cloud, IoT and Cyber Security Aid Infosys (INFY)
Per the Zacks analyst, Infosys is benefitting from strong demand for its services in the cloud, the Internet of Things, cyber security, and data and analytics.
Omnichannel Efforts, Asset Revamps Aid Simon Property (SPG)
Per the Zacks Analyst, Simon Property is likely to ride high on the benefits of new development, redevelopment, expansion and omnichannel efforts in a recovering retail real estate market.
AI-enabled PC, Windows 11 Upgrades to aid HP Inc's (HPQ) PC Demand
Per the Zacks analyst, a rise in generative artificial intelligence-enabled PCs, new Windows 11 upgrades and anticipated PC refreshment cycle are expected to benefit HP Inc. in 2024.
TEVA's New Drugs & Generic Stability May Help Revive Growth
Teva's newer drugs, Austedo, Uzedy and Ajovy, and a stable generics business may revive top-line growth, per the Zacks analyst.
New Upgrades
Gap's (GPS) Cost-Cutting Efforts & Lower Airfreight Aid Margins
Per the Zacks analyst, Gap has been gaining from lower airfreight, improved promotions and cost-cutting actions. It is on track with the execution of its Power Plan 2023 strategy.
Cost Actions, Acquisitions to Aid Element Solutions (ESI)
While Element faces headwinds from the softness in the electronics market, it will gain from cost-management actions and synergies from acquisitions including Kuprion, per the Zacks analyst.
Lantheus (LNTH) Benefits from Radiopharmaceutical Leadership
Per the Zacks analyst, Lantheus is likely to gain from its leadership in Radiopharmaceutical segment. Potential pipeline development and a strong solvency position to act as an added advantage.
New Downgrades
High Costs, Volatile Iron Ore Price Ail National Steel (SID)
The Zacks analyst is concerned that the recent volatility in iron ore prices and higher costs for raw materials and fuel rising will weigh on National Steel's margins.
Trinity (TRN) Grapples With Higher Net Interest Expense
Per the Zacks Analyst, Trinity continues to incur higher interest expenses, owing to higher interest rates and higher overall average debt. Higher net interest expense is likely to mar the bottom line
Merger Termination, Strict Policies Ail PNM Resources (PNM)
Per the Zacks analyst, PNM Resources' financial performance might be negatively impacted due its merger deal termination. Environmental policies and regulations are concerns for the company.
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
International Business Machines Corporation (IBM) : Free Stock Analysis Report
Duke Energy Corporation (DUK) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Cigna Group (CI) : Free Stock Analysis Report
Linde PLC (LIN) : Free Stock Analysis Report
