Top Analyst Reports for Alphabet, Wells Fargo & PetroChina

Friday, March 22, 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 Alphabet (GOOGL), Wells Fargo (WFC), and PetroChina (PTR). 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 >>>

Alphabet's shares have outperformed the Zacks Internet Services industry in the past year (+20.4% vs. -4.6%).The Zacks analyst thinks Alphabet is riding on its growing search initiatives. Its strong initiatives toward elimination of bad ads and introducing useful major search updates are acting as tailwinds. These are enhancing its search results.

Further, Google’s robust mobile search is also a major positive. Additionally, its strong focus toward bolstering presence in the cloud market on the back of expanding data centers and robust cloud offerings continues to aid top-line growth.

The company’s strong focus on innovation related to its AI techniques and Android OS along with growing presence in the home automation space are aiding business growth further. However, the company’s growing litigation issues might hurt its profitability. Also, it's increased spending on consumer gadgets, YouTube video app and cloud computing services remains a concern.

(You can read the full research report on Alphabet here >>>).

Shares of Wells Fargo have underperformed the Zacks Major Regional Banks industry over the past three months (up +14.4% vs. +17.4%).Its earnings surprise history is decent, having beaten expectations in two of the trailing four quarters. The Zacks analyst likes the ongoing investments in the businesses to enhance compliance and risk management capability, build a better bank and strengthen core infrastructure.

The bank settled fake account scandal-related lawsuit filed by shareholders and ended investigations by about 50 states, which will enable it to focus on operations. However, Wells Fargo was slapped with several sanctions, including a cap on its assets by the Federal Reserve, following its involvement in several legal issues. Its reputation was harmed by such involvement and might take some time to recover. Falling mortgage banking income is another concern.

(You can read the full research report on Wells Fargo here >>>).

PetroChina’s shares have gained +11.2% year to date, underperforming the Zacks International Integrated Oil industry, which has increased +13.6% over the same period. The Zacks analyst thinks that since higher oil prices will likely support the state-run giant's upstream unit in the near-to-medium term, the stock might regain favor.

The company's exploration & production segment has been benefiting from steady commodity price recovery and stricter cost control. Meanwhile, the downstream business -- consisting of the refining and chemicals’ activities – should be able to take advantage of optimized resource allocation, strict cost control and increased production of high-value products.

However, the company's weak oil production growth prospects are a major concern. Limited international operations and losses on gas imports give investors more reason to be cautious about the stock.

(You can read the full research report on PetroChina here >>>).

Other noteworthy reports we are featuring today include Micron (MU), Tesla (TSLA) and Allstate (ALL).

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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

Alphabet (GOOGL) Benefits From Search & Cloud Initiatives

Loan Growth Supports Wells Fargo (WFC), Legal Issues Linger

Upstream Unit Buoys PetroChina (PTR) Amid Gas Import Losses

Featured Reports

Mobile Business Unit Growth Aids Micron (MU), Pricing Hurts

Per the Zacks analyst, strong growth in managed NAND products is driving revenue growth of Micron's Mobile Business Unit. However, adverse memory and storage pricing remain concerns

Service Business Aids Allstate (ALL), High Debt Level Hurts

Per the Zacks analyst, growing Service business on the back of strategic buyouts and expansion have ed to significant growth. However, high debt remains a concern.

Tesla (TSLA) Rides on Production & Energy Storage Deployment

Per the Zacks analyst, Tesla gains from solid strides in vehicle production, deliveries and infrastructure. Also, its focus on adding energy storage capacity is boosting growth momentum.

Quest (DGX) Strong on New Alliances, Price Pressure Ails

The Zacks analyst is upbeat about Quest Diagnostics on the expanded long-term pact with UnitedHealthcare, to operate as the latter's preferred national laboratory. Unit price headwinds remain.

Lamar (LAMR) to Grow on Portfolio Upgradation and Expansion

Per the Zacks analyst, Lamar's efforts to upgrade its portfolio will raise display occupancy and advertising rates. Buyouts will also position the company for long-term growth.

Asset Inflows, Acquisitions Aid Invesco (IVZ), Costs a Woe

Per the Zacks analyst, asset under management inflows and inorganic growth strategy will support Invesco's revenues.

Passenger Revenues, Fleet Upgrade Buoy Azul (AZUL)

The Zacks analyst appreciates the company's efforts to modernize its fleet.

New Upgrades

Growing Revenue, Strategic Buyouts Aid Global Playments (GPN)

Per the Zacks analyst, growing top line on the back of strategic buyouts such as AdvancedMD, ACTIVE Network and Heartland Payments Systems poise it well for long-term growth.

Twilio (TWLO) Rides on Product Strength, Expanding Clientele

Per the Zacks analyst, Twilio's strong core voice and messaging products are leading to a robust expansion of its existing clientele and first-time deals with the new ones, thereby aiding its topline.

Atlantic Aviation Segment Boosts Macquarie (MIC)

Per the Zacks analyst, solid traction of Macquarie Infrastructure's Atlantic Aviation segment, led by rise in hangar rental income and ancillary services revenue bodes well for its growth momentum.

New Downgrades

High Input Costs, Weak Demand Ail Eastman Chemical (EMN)

Per the Zacks analyst, Eastman Chemical faces headwinds from raw material cost inflation. Also, weak demand for its specialty products in China remains a concern.

Soft Foodservice Unit Continues to Trouble Conagra (CAG)

Per the Zacks analyst, Conagra grapples with lower sales in the Foodservice unit. The unit's sales fell 8.5% year on year in the third quarter, mainly due to the divestiture of the Trenton facility.

Debt Pile, U.S. Gas Unit Woes to Weigh on SemGroup (SEMG)

The Zacks analyst believes the considerable long-term debt load of $2.3 billion limits SemGroup's growth prospects. Continuing volume weakness in the company's U.S. gas unit is also a concern.

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Wells Fargo & Company (WFC) : Free Stock Analysis Report
 
Tesla, Inc. (TSLA) : Free Stock Analysis Report
 
PetroChina Company Limited (PTR) : Free Stock Analysis Report
 
Micron Technology, Inc. (MU) : Free Stock Analysis Report
 
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
 
The Allstate Corporation (ALL) : Free Stock Analysis Report
 
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