Top Stock Reports for Alphabet, Facebook & The Home Depot
Wednesday, March 17, 2021
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 Alphabet (GOOGL), Facebook (FB), and The Home Depot (HD). 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 >>>
Shares of Alphabet have gained +18.9% in the past three months against the Zacks Internet Services industry’s gain of +12%. The Zacks analyst believes that Alphabet's strengthening cloud unit is aiding substantial revenue growth.
Moreover, expanding data centers will continue to bolster its presence in the cloud space. Further, major updates in its search segment are enhancing the search results, which is a major positive. Also, Google’s robust mobile search is gaining solid momentum.
Additionally, strong focus on innovation of AI techniques and the home automation space should aid business growth in the long term. Further, its deepening focus on wearables category remains a tailwind. However, the company’s growing litigation issues and increasing expenses might hurt profitability.
(You can read the full research report on Alphabet here >>>)
Facebook’s shares have gained +10.5% over the last six months against the S&P 500’s gain of +20.2%. The Zacks analyst believes that Facebook is benefiting from steady user growth across all regions, particularly Asia Pacific.
Increased engagement for its products like Instagram, WhatsApp and Messenger is a major growth driver. Strong advertising revenues were driven by a strong holiday shopping season for retail that benefited from the ongoing shift to online commerce.
The company expects year-over-year growth rates in total revenues to remain stable or modestly accelerate on a sequential basis in the first and second quarters of 2021. Moreover, increasing regulatory headwinds in the EU and other countries is a concern.
(You can read the full research report on Facebook here >>>)
Home Depot shares have underperformed the Zacks Retail Building Products industry over the past year (+81.8% vs. +98.3%). The Zacks analyst believes that Home Depot’s interconnected retail strategy and underlying technology infrastructure have helped boost web traffic in fiscal 2020.
During the fourth-quarter fiscal 2020, the company witnessed continued strong demand for home improvement projects. Also, broad-based strength across its business and geographies led to comparable sales growth.
However, the company has been witnessing soft margins trend on higher expenses. Negative product mix and pressures from shrink and higher transportation costs have been headwinds.
(You can read the full research report on Home Depot here >>>)
Other noteworthy reports we are featuring today include Chevron (CVX), Starbucks (SBUX) and HSBC Holdings (HSBC).
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Sheraz Mian
Director of Research
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
Alphabet (GOOGL) Rides on Diversification; Legal Troubles Ail
Expanding User Base, Instagram Strength Aid Facebook (FB)
Interconnected Retail Strategy Aids Home Depot's (HD) Growth
Featured Reports
Chevron (CVX) Boosts Permian Position with Noble Buy
The Zacks analyst believes Chevron's Noble buyout will expand its position in the Permian Basin but is worried over the company's reserve replacement ratio of just 74%.
Unit Growth to Aid Starbucks (SBUX), Traffic Woes Stay
Per the Zacks analyst, Starbucks' rapid unit growth, best-in-class loyalty program and digital offerings bode well.
Restructuring to Aid HSBC Holdings (HSBC) Amid Low Rates
Per the Zacks analyst, HSBC Holdings' efforts to improve operating efficiency through business restructuring will aid profits. Low global interest rates and Brexit-related concerns will hurt revenues.
UBER Benefits From Delivery Business Amid Mobility Weakness
The Zacks analyst is optimistic about Uber's booming delivery business as order volumes from homebound customers increase.
Cost-Cutting Initiatives Drive ABB Amid COVID-19 Concerns
Per the Zacks analyst, organic growth investments with several cost-cutting initiatives drive ABB's margins. However, weakness across end markets due to COVID-19 crisis remains a persistent concern.
Waste Management (WM) Rides on Acquisitions Amid High Debt
Per the Zacks analyst, acquisitions have aided Waste Management's top line growth. However, high debt may limit its future expansion and worsen risk profile.
Dollar General's (DG) Sturdy Comps Run to Propel Top-Line
Per the Zacks analyst, better price management, merchandise efforts, operational initiatives and coronavirus-led demand should drive sales.
New Upgrades
Strategic Alliances & Strong Financials to Buoy Magna (MGA)
Magna's joint-venture deal with LG Electronics is set to expand its electric powertrain offerings. The Zacks analyst also likes Magna's healthy balance sheet with low debt-to-capitalization of 25%.
Demand in Hygiene Market & E-Commerce to Aid Rexnord (RXN)
Per the Zacks analyst, Rexnord (RXN) is poised to benefit from strengthening business in hygiene end market. Also, surge in e-commerce business is added advantage.
Sunosi, Xywav Approval Boost Jazz's (JAZZ) Sleep Franchise
Per the Zacks analyst, approval for Jazz's two new drugs, Sunosi and Xywav, in the United States in the past two years have boosted the company's major revenue generating segment, the sleep franchise.
New Downgrades
Huge Debt Burden & Stiff Competition Impair Lumen (LUMN)
Per the Zacks analyst, apart from the huge debt burden, Lumen is facing challenges from wireless and other competitive offerings, resulting in a significant decline in legacy voice services.
Yandex (YNDX) is Hurt by Sluggishness in Advertising Network
Per the Zacks analyst, softness in the advertising network is a major headwind for the advertising business which is an integral part of Yandex.
Rising Costs, Low Rates Remain Woes for TCF Financial (TCF)
Per the Zacks analyst, rising expenses due to TCF Financial's investment in business infrastructure hurt bottom-line growth. Net interest income remains under pressure due to the low rate environment.
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HSBC Holdings plc (HSBC) : Free Stock Analysis Report
The Home Depot, Inc. (HD) : Free Stock Analysis Report
Facebook, Inc. (FB) : Free Stock Analysis Report
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