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Top Analyst Reports for MSCI, Continental Resources & SVB Financial

Wednesday, October 5, 2022

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 MSCI Inc. (MSCI), Continental Resources, Inc. (CLR) and SVB Financial Group (SIVB). 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 >>>

MSCI shares have declined -24.5% over the past year against the Zacks Business - Software Services industry’s decline of -28.5%. The company has a leveraged balance sheet, which is a concern. Nevertheless, its top line benefited from solid growth in recurring subscriptions.

MSCI is gaining strong demand for custom and factor index modules, recurring revenue business model and the growing adoption of its ESG solution in the investment process. MSCI’s expanding portfolio of climate tools is noteworthy. Acquisitions have enhanced MSCI’s ability to provide climate-risk assessment and assist investors with climate-risk disclosure requirements.

MSCI’s new portfolio foot-printing tool has extended climate analysis to municipal bonds and securitized products. Moreover, a strong traction from client segments like wealth management, banks and hedge funds is a positive.

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

Continental Resources shares have outperformed the Zacks Oil and Gas - Exploration and Production - United States industry over the past year (+42.2% vs. +40.4%). The company has a premier position in the Bakken region, which is one of the largest onshore oilfields in the United States. Its operations in the SCOOP and STACK plays of Oklahoma generate huge profits.

Continental Resources has acquired Delaware Basin assets from Pioneer Natural Resources, marking its entry into the prolific Permian Basin. The acquisition has brightened its long-term production outlook. Also, the company has maintained its average oil production upward to 200,000-210,000 Bbls/d for the year. With high oil prices, higher production is expected to boost the company’s profitability.

However, Continental’s significant exposure to debt is concerning. Higher production costs will affect its bottom-line. Also, the aggressive capital budget remains a headwind for the company. As such, the stock warrants a cautious stance.

(You can read the full research report on Continental Resources here >>>)

SVB Financial shares have underperformed the Zacks Banks - West industry over the past year (-44.5% vs. -23.2%). Several macroeconomic and geopolitical concerns will likely continue to weigh on its financials in the next few quarters. Additionally, elevated expenses are expected to hurt the bottom line to an extent.

However, the company has an impressive earnings surprise history. The company's earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Higher rates, growth in loans and deposit balances, efforts to improve non-interest income, and the company’s global expansion strategy will likely keep aiding financials.

The acquisitions of Boston Private, MoffettNathanson and the debt investment business of WestRiver Group are expected to be earnings accretive and will help SVB Financial further cement its foothold in the innovation economy.

(You can read the full research report on SVB Financial here >>>)

Other noteworthy reports we are featuring today include Church & Dwight Co., Inc. (CHD), Hewlett Packard Enterprise Company (HPE), and International Paper Company (IP).

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

Solid Adoption of ESG Solution Aids MSCI's (MSCI) Progress

Continental (CLR) to Benefit From Delaware Asset Acquisition

Global Expansion Aids SVB Financial (SIVB), Higher Costs Ail

Featured Reports

Church & Dwight (CHD) Banks on Pricing to Counter Inflation
Per the Zacks analyst, Church & Dwight has been undertaking efficient pricing actions, which have been aiding the company amid cost inflation. Pricing also fueled organic sales in the second quarter.

Hewlett Packard (HPE) Benefits From Spurt in Aruba Services
Per the Zacks analyst, a strong uptick in Aruba Services is driving Hewlett Packard's Intelligent Edge segment, which in turn, helps sustain its supremacy in the market with high growth opportunity.

Solid Demand Aids International Paper (IP), Input Costs Hurt
Per the Zacks analyst, continued strong demand across its businesses will aid International Paper's results despite the impact of elevated input and distribution costs.

Revenue-Enhancing Initiatives Support Comerica (CMA), Costs Up
Per the Zacks analyst, Comerica's revenues and efficiency initiatives are likely to boost its financials. However, lack of diversification in its loan portfolio and rising costs ail.

Jack in the Box (JACK) Banks on Digitalization, Costs High
Per the Zacks analyst, Jack in the Box continues to focus on digital channels, menu innovation and franchisee businesses to revive its top line. However, wage and commodity inflation remain concerns.

New Upgrades

Strong Project Pipeline Boost Canadian Solar (CSIQ) Growth
Per the Zacks Analyst, strong pipeline of projects backed by expanding global footprint tend to bolster Canadian Solar's operational results and long-term growth prospects.

Strong E-commerce Demand Aids Air Transport Services (ATSG)
The Zacks analyst is impressed with upbeat e-commerce demand. Strong performance of the Cargo Aircraft Management unit is an added positive.

New Downgrades

Nu Skin (NUS) Gross Margin Hurt by Unfavorable Currency Rates
Per the Zacks analyst, Nu Skin's gross margin is hurt by adverse currency rates. Its second-quarter gross margin contracted 200 basis points due to unfavorable product mix and foreign currency rates.

Limited Liquidity, Concentration Risk Hurt Sallie Mae (SLM)
Per the Zacks analyst, Sallie Mae's debt levels seem unmanageable, given its unsound liquidity position. Also, its exposure to brokered deposits as the key source of funding is concerning.


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 Paper Company (IP) : Free Stock Analysis Report
 
Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report
 
MSCI Inc (MSCI) : Free Stock Analysis Report
 
Continental Resources, Inc. (CLR) : Free Stock Analysis Report
 
SVB Financial Group (SIVB) : Free Stock Analysis Report
 
Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report
 
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Zacks Investment Research