Thursday, May 7, 2020
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 Procter & Gamble (PG), Exxon Mobil (XOM) and Adobe Systems (ADBE). 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 >>>
Procter & Gamble’s shares have outperformed the Zacks Soap and Cleaning Materials industry over the past year (+7.1% vs. -2.2%). The Zacks analyst believes that company’s efforts to make its cleaning and personal care products during the current pandemic have helped bolster sales. It has witnessed an increased demand for hand soaps, detergents and surface cleaning products, in particular.
The company’s solid third-quarter fiscal 2020 earnings mark the continuation of its positive surprise trend. Further, earnings and sales improved year over year in the reported quarter on gains from significant sales increase, related fixed cost leverage and ongoing productivity efforts.
Further, it delivered adjusted free cash flow productivity of 113% in the fiscal third quarter. However, currency fluctuations remain concerning. Due to stronger headwind from foreign exchange rates, the company lowered its all-in sales view for fiscal 2020.
(You can read the full research report on Procter & Gamble here >>>)
Shares of Exxon Mobil have lost 36.8% over the past six months against the Zacks Integrated International Oil industry’s fall of 39.9%. The Zacks analyst believes that with no near-term recovery in demand in the horizon, owing to coronavirus pandemic, the firm’s refining business is not expected to improve anytime soon.
Notably, the company estimates gross recoverable resource of more than 8 billion oil-equivalent barrels from offshore Guyana discoveries. The energy giant’s first-quarter 2020 results were better than expected, thanks to growth in production from the prolific Permian & Guyana oil resources. This was partially offset by lower industry refining margin and decline in commodity prices.
ExxonMobil’s bellwether status in the energy space, optimal integrated capital structure that has historically produced industry-leading returns and management’s track record of capex discipline across the commodity price cycle makes it a relatively lower-risk energy sector play.
(You can read the full research report on Exxon Mobil here >>>)
Adobe’s shares have lost 0.6% over the past three months against the Zacks Software industry’s fall of 5.8%. The Zacks analyst remains optimistic about Adobe’s market position, compelling product lines, continued innovation, solid adoption of Creative Cloud and Adobe marketing cloud.
Adobe is benefiting from strong demand for its creative products. The company’s Creative Cloud, Document Cloud and Adobe Experience Cloud products are driving the top-line growth. Further, rising subscription revenues and solid momentum across the mobile apps are major positives.
Additionally, growth in emerging markets, robust online video creation demand and improving average revenue per user are tailwinds. However, the company has given weak guidance for the current quarter due to coronavirus scare which might delay enterprises booking decisions, reduce marketing spending and hurt consulting service implementations.
(You can read the full research report on Adobe here >>>)
Other noteworthy reports we are featuring today include Comcast (CMCSA), ConocoPhillips (COP) and Las Vegas Sands (LVS).
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
Solid Demand Aids Procter & Gamble (PG), Currency Woes Linger
ExxonMobil (XOM) Banks on Offshore Guyana, Refining Weak
Adobe (ADBE) Rides on Growing Adoption of Cloud Applications
High Speed Internet Subscriber Gain Benefits Comcast (CMCSA)
Per the Zacks Analyst, Comcast benefits from an expanding high speed internet subscriber base as well as strong adoption of Xfinity and Flex services.
ConocoPhillips' (COP) Strength in Oil-Rich Eagle Ford to Aid
The Zacks analyst expects ConocoPhillips to gain from unconventional resources in the prolific Eagle Ford shale play.
Las Vegas Sands (LVS) Banks on Expansion, Coronavirus Ails
Per the Zacks analyst, Las Vegas Sands is likely to benefit from its $2.2 billion investment in Macau.
Productivity Actions, New Products to Aid DuPont (DD)
While DuPont faces headwind from soft demand in certain end-markets, it should gain from productivity improvement actions and investment in new product development, per the Zacks analyst.
Investments to Aid PSEG (PEG), Coronavirus Impacts May Hurt
Per the Zacks analyst, Public Service Enterprise (PSEG) invests heavily to improve grid reliability and safety.
IDEXX (IDXX) Gains on Robust Diagnostics Arm Amid the Pandemic
The Zacks analyst is impressed with IDEXX's robust global gains in Diagnostics recurring revenues amid the coronavirus-led economic crisis.
Prudential (PRU) to Gain from Pension Risk Transfer Business
Per the Zacks analyst, Prudential is set to gain from high performing asset management business and deeper reach in the pension risk transfer market. However, low interest rate concerns.
Electronic Arts (EA) Benefits From Solid Gaming Portfolio
Per the Zacks analyst, Electronic Arts' top line benefits from a burgeoning user base on the back of a sturdy gaming portfolio.
Steady Investments to Aid FirstEnergy's (FE) Overall Growth
Per the Zacks analyst, transition to a fully-regulated utility and long-term investments under 'Energizing the Future' initiative will add to FirstEnergy's overall operational strength.
Strength in Invitro Diagnostics Unit Aids Surmodics (SRDX)
The Zacks analyst is bullish about Surmodics' revenue growth in Invitro Diagnostics unit. The partnership with Cook Medical is another major positive.
Burlington Stores' (BURL) Top Line to Hit By Coronavirus
Per Zacks analysts, coronavirus has disrupted Burlington Stores' business activities compelling it to shut stores and distribution centers. Loss of sales from such stores will hurt overall top line.
Coronavirus-led Work Restrictions Hit ManpowerGroup (MAN)
Per the Zacks Analyst, ManpowerGroup's largest reportable segment, Southern Europe, is facing staffing margin pressure due to the coronavirus-related work restrictions.
Lower Rates, Exposure to Risky Loans Hurt BankUnited (BKU)
Per the Zacks analyst, near-zero rates will likely put pressure on margins, thereby hurting BankUnited's revenues to some extent. Also, its exposure to risky loan portfolio is a key near-term concern.
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Procter Gamble Company The (PG) : Free Stock Analysis Report
Las Vegas Sands Corp (LVS) : Free Stock Analysis Report
ConocoPhillips (COP) : Free Stock Analysis Report
Comcast Corporation (CMCSA) : Free Stock Analysis Report
Adobe Systems Incorporated (ADBE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research