Monday, October 28, 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 The Procter & Gamble Company (PG), Intel Corp. (INTC) and Adobe Inc. (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 on a year to date basis (+34.8% vs. +22.1%). The Zacks analyst believes that they company’s earnings are currently benefitting from its ongoing productivity efforts, while strong organic sales growth backed by higher shipment volumes and favorable price/mix boosted the top line. The company is also gaining from focus on product improvement, packaging and marketing initiatives, and productivity and cost-savings plan.
However, adverse foreign currency rates are hurting the company’s top and bottom lines. The company expects currency headwinds to hurt its top line in fiscal 2020. Moreover, global economic challenges and stiff competition poses concern.
(You can read the full research report on Procter & Gamble here >>>)
Intel’s shares have outperformed the S&P 500 index so far this year (+19.9% vs. +19.4%). The Zacks analyst believes that the PC-centric business is anticipated to be flat to decline marginally year over year, NAND pricing growth and recovery in cloud are anticipated to drive the Data-centric business in the fourth quarter.
Intel is benefiting from rising demand for its high-performance products in both data center and client domains. Moreover, launch of new 10nm technology-based AI chip, Springhill, holds promise.
However, weakness in demand from China, expenses pertaining to 10nm ramp and constrained supply are concerns. Moreover, intensifying competition from AMD is a headwind.
(You can read the full research report on Intel here >>>)
Adobe’s shares have outperformed the Zacks Computer - Software industry over the past two-year period (+53.2% vs. +48.6%). The Zacks analyst believes that Adobe’s increasing demand for its creative products continues to drive its top-line growth.
Also, the company’s Adobe Document Cloud and Adobe Experience Cloud products, along with growing subscription for cloud application are positives. It has been making great efforts toward establishing its presence in cloud-related software areas such as documents and marketing.
However, lower end-market demand and exposure to Europe remain overhangs. High acquisition expenses do not bode well for its margin expansion.
(You can read the full research report on Adobe here >>>)
Other noteworthy reports we are featuring today include Walmart Inc. (WMT), Texas Instruments Inc. (TXN) and Tesla, Inc. (TSLA).
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
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
P&G's (PG) Productivity & Cost Savings Plan to Drive Profits
Data-Centric Business Growth Aids Intel's (INTC) Prospects
Adobe (ADBE) Counts on Creative Strength; Expenses A Concern
Jakafi Drives Growth For Incyte (INCY) Amid Pipeline Setbacks
Per the Zacks analyst, Incyte's lead drug Jakafi maintains momentum on the back of solid growth for the various approved indications.
Investment Aids American Electric (AEP), Rate Dependency Hurts
Per the Zacks Analyst, it plans to invest $33 billion over 2019-2023 period in regulated operations to boost earnings.
Matador's (MTDR) Premier Permian Position to Boost Output
The Zacks analyst expects Matador's production volumes to rise in the coming quarters on significant Permian presence.
Solid Commercial Business Drives First American (FAF)
Per the Zacks analyst, First American is set to gain from strength in commercial business as well as property and casualty business and expansion of core business and valuation and data businesses.
Expansion Strategy to Aid Hilton (HLT) Amid Stiff Competition
Per the Zacks analyst, Hilton's robust brand image coupled with aggressive expansion strategies is likely to aid the top line.
Tesla (TSLA) Rides on Model 3 Sales Amid Tariff Concerns
While rising Model 3 deliveries are buoying Tesla's prospects, the Zacks analyst is concerned about the U.S.-Sino trade tiff as the firm commands a sizable market share in China.
Robust Backlog Aids Meritor (MTOR) Amid Input Cost Woes
Per the Zacks Analyst, Meritor is benefiting from strong orders, aided by the improving U.S. trucks and trailer market.
Strong Rider Growth Bodes Well for Lyft's (LYFT) Top Line
The Zacks analyst believes that the uptick in active riders will continue to aid Lyft's top line. Lyft's efforts to become a key player in the driverless car space are also encouraging.
E-commerce Expansion Likely to Fuel Walmart's (WMT) Sales
Per the Zacks analyst, growth in the e-commerce arena has been driving Walmart's comparable store sales. Management is optimistic about achieving 35% growth in U.S. e-commerce sales in fiscal 2020.
U.S. Pharmaceutical and Specialty Arm Drives McKesson (MCK)
McKesson has been consistently gaining from the core U.S. Pharmaceutical and Specialty Solutions unit. The Zacks Analyst is also optimistic about a raised fiscal 2020 view.
Promotion Costs & Tariffs to Continue Hurting iRobot (IRBT)
Per a Zacks analyst, iRobot (IRBT) is likely to hurt from tariff-related woes (due to ongoing trade tiff between the U.S. and China) and costs in connection with promotion activities and lowered price
Sluggish End-Market Conditions Hurt Texas Instruments (TXN)
Per the Zacks analyst, U.S.-China trade tensions and weak customer momentum are hurting the performance of Texas Instruments' Analog and Embedded Processing segments in the end markets.
High Costs, Concentration Risk Hurt Synovus Financial (SNV)
Per the Zacks Analyst, rising costs due to Synovus' investments in technology platform owing to its business initiatives remains a key concern. Also, substantial exposure to commercial loans is a woe.
Walmart Inc. (WMT) : Free Stock Analysis Report
Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
Intel Corporation (INTC) : Free Stock Analysis Report
Adobe Systems Incorporated (ADBE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research