Friday, January 24, 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 Intel (INTC), Boeing (BA) and Blackstone Group (BX). 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 >>>
Intel’s shares have outperformed the Zacks General Semiconductor industry over the past year (+44.6% vs. +40.8%). The Zacks analyst believes that Strong mix of high-performance 2nd-Gen Xeon Scalable processors and solid demand from Cloud service providers drove Data Center Group revenues. Intel’s fourth-quarter 2019 results were driven by strong data-centric growth.
Moreover, the PC-centric business benefited from higher modem sales and desktop platform volumes. Intel witnessed strong momentum for its first 10-nanometer (nm) mobile CPU, Ice Lake, with 44 system designs already shipping. The company is planning nine product releases on 10 nm this year. Moreover, it is adding 25% wafer capacity across its 14 nm and 10 nm nodes in 2020.
However, a declining PC total addressable market, higher expenses pertaining to 10-nm ramp up and constrained supply are concerns. Moreover, intensifying competition from AMD is a headwind.
(You can read the full research report on Intel here >>>)
Shares of Boeing have lost -7.9% in the past six months against the Zacks Aerospace & Defense industry's rise of +2.1%. The Zacks analyst believes that Boeing’s proposed joint venture with Embraer is expected to strengthen its commercial business significantly, which is expected to be accretive to its earnings at the start of 2020.
Looking ahead, the current U.S. government’s inclination toward strengthening the nation’s defense system should act as a growth catalyst for defense players like Boeing. However, Boeing's commercial business has suffering due to lower 737 deliveries, following 737 Max product line's grounding and subsequent costs associated with it.
Its commercial deliveries plunged 67% year over year, resulting in a huge 41% decline in the unit’s revenues during the third quarter. Consequently, its earnings and cash flow position were also affected significantly.
(You can read the full research report on Boeing here >>>)
Blackstone’s shares have gained +9.4% over the past three months against the Zacks Electric Power industry's rise of +4.5%. The Zacks analyst believes that the company remains well-poised to capitalize from its fund-raising ability. It is expected to benefit from revenue mix, persistent asset inflows and inorganic growth initiatives.
Also, the company’s conversion from a publicly traded partnership to a corporation is expected to help in attracting more investors for its stock. However, continuously increasing expenses (mainly owing to higher general and administrative costs) are expected to hamper the bottom line to an extent. Moreover, lower chances of sustainability of the company’s capital deployment activities remain a major concern.
(You can read the full research report on Blackstone here >>>)
Other noteworthy reports we are featuring today include Johnson & Johnson (JNJ), Kinder Morgan (KMI) and Sempra Energy (SRE).
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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
Data-Centric Business Growth Aids Intel's (INTC) Prospects
Strategic Mergers Aid Boeing (BA), Low 737 Deliveries Hurt
Solid Assets Balance Aids Blackstone (BX), Costs a Concern
J&J's (JNJ) Pharma Unit Shines Amid Generic/Litigation Woes
The Zacks analyst is impressed by the above-market performance of J&J's pharma unit despite overhangs like biosimilar/generic competition for some key drugs and ongoing litigation issues.
Kinder Morgan (KMI) Banks on PHP Project, Debt Level High
The Zacks analyst believes that Kinder Morgan's proposed PHP Pipeline project will help it to cash in on Permian's bottleneck problem.
Investments Aids Sempra Energy (SRE), Operational Risks Hurt
Per the Zacks Analyst, company's disciplined investments in various projects bolsters growth prospects.
Autodesk (ADSK) Banks on Portfolio Strength Amid Macro Woes
Per the Zacks analyst, portfolio strength is helping the company steer past competition in manufacturing space.
Wide Market Reach, New Product Development Aid Eaton (ETN)
Per the Zacks analyst Eaton's operations in 175 countries across the world and development of new products through ongoing R&D investments will continue to drive demand and boost profitability.
U.S. Market Strength Aids Ford (F) Amid International Woes
Robust demand for SUVs & crossovers in the United States is boosting Ford's sales. However, the Zacks analyst is concerned about declining profits in the Middle East and China amid global slowdown.
Steady Investment, Clean Energy Focus Aid Xcel Energy (XEL)
Per the Zacks analyst Xcel Energy's plan to invest $22B in next five years to fortify its infrastructure and promote clean power generation will reduce carbon emission and boost its performance.
Azul (AZUL) Gains Traction From Strong Passenger Revenues
The Zacks analyst is impressed by robust growth in passenger revenues, courtesy of rising air travel demand. The carrier's fleet modernization initiatives further add to the positivity.
NuStar Energy's (NS) Permian Exposure to Spur Growth
The Zacks analyst believes that NuStar's oil pipeline network in the prolific Permian Basin is expected to drive meaningful margin upside on the back of higher volumes transported.
Dillard's (DDS) Merchandising Efforts to Bolster Growth
Per the Zacks analyst, Dillard's is benefiting from its efforts to enhance brand relations, focus on in-trend categories and store remodels.
Weak Revenue Growth, High Costs Hurt HSBC's (HSBC) Profits
Per the Zacks analyst, HSBC's investments in China and the U.K. are likely to result in higher costs. Also, muted revenue growth and several geopolitical matters are the other key near-term concerns.
High Debt Levels and Weak Volumes to Weigh on Greif (GEF)
The Zacks analyst is concerned that higher debt following the Caraustar acquisition and continued weak volumes in the Rigid Industrial Packaging & Services segment will impair Greif's results.
High Customer Churn, Escalating Costs Hurt Telefonica (VIV)
Per the Zacks analyst, high customer churn rate, due to continued losses in the fixed access business units, and rising operating expenses have taken a toll on Telefonica's profitability.
Sempra Energy (SRE) : Free Stock Analysis Report
Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
Intel Corporation (INTC) : Free Stock Analysis Report
Blackstone Group Inc/The (BX) : Free Stock Analysis Report
The Boeing Company (BA) : Free Stock Analysis Report
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