Yahoo Finance Top Research Reports for PepsiCo, Texas Instruments & HSBC Holding
Wednesday, March 8, 2023
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 PepsiCo, Inc. (PEP), Texas Instruments Incorporated (TXN) and HSBC Holdings plc (HSBC). 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 >>>
PepsiCo shares handily outperformed Coca-Cola and S&P 500 index over the past year (+8.9% for PEP vs. +1.9% for KO and -5.9% for the S&P 500 index). The company’s revenues and earnings beat the Zacks Consensus Estimate and improved year over year in the last reported quarter on February 9th. This marked the 17th straight quarter of sales beat.
Resilience and strength of global beverage and convenient food businesses bode well. PepsiCo expects to benefit by delivering convenience, variety and value proposition to customers through its brands. It raised its revenue view for 2022.
However, PepsiCo witnessed margin pressures in the third quarter driven by impacts of supply-chain disruptions and inflationary labor, transportation and commodity costs. PEP anticipates incremental input cost inflation for the balance of 2022. Adverse currency rates also remain headwinds.
(You can read the full research report on PepsiCo here >>>)
Shares of Texas Instruments have declined -0.2% over the past year against the Zacks Semiconductor - General industry’s decline of -9.0%. The company is facing sluggishness in the Analog segment remains a concern. Further, weakening momentum across personal electronics and industrial end-markets is a negative. Additionally, pandemic-led supply-chain disruptions and imposition of new export regulations are headwinds.
However, Texas Instruments’ fourth quarter results were driven by solid momentum across its Embedded Processing segment. Growing demand for embedded technologies across the automotive and industrial markets contributed well.
Additionally, continued rebound in the automotive market was a tailwind. We note that the company’s growing investments in new growth avenues and competitive advantages remain tailwinds. Further, its portfolio of long-lived products and efficient manufacturing strategies are other positives.
(You can read the full research report on Texas Instruments here >>>)
HSBC Holdings shares have outperformed the Zacks Banks - Foreign industry over the past year (+15.0% vs. +1.0%). The company’s strong capital position, initiatives to strengthen digital capabilities, an extensive network and improvement in operating efficiency through business restructuring will likely keep aiding HSBC’s growth.
The bank has entered an agreement to sell its Canada banking business. Exiting from the U.S. and French retail banking operations is expected to help it focus more on Asia. In sync with this, the acquisition of AXA Singapore insurance assets will expand HSBC’s business in the region.
Although efforts to improve market share in the U.K. and China will support financials, these might lead to a rise in costs, which will hurt profits. Yet, HSBC’s product and service leadership in cross-border banking services help it in widening its customer base.
(You can read the full research report on HSBC Holdings here >>>)
Other noteworthy reports we are featuring today include Petróleo Brasileiro S.A. - Petrobras (PBR), Carrier Global Corporation (CARR) and DuPont de Nemours, Inc. (DD).
Director of Research
Sheraz Mian
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
PepsiCo's (PEP) Investments in Business Drive the Top Line
Embedded Processing Strength Aids Texas Instruments (TXN)
Business Restructuring, Higher Rates Support HSBC (HSBC)
Featured Reports
Pre-Salt Reserves Boosts Petrobras (PBR), Debt Pile Hurts
Petrobras' stakes in Brazil's attractive pre-salt oil reservoirs should boost its earnings outlook. However, the Zacks analyst is concerned over the company's huge net debt of $41.5 billion.
Carrier (CARR) Benefits From Strength in the HVAC Segment
Per the Zacks analyst, strength in the North America residential, light commercial and commercial Heating, Ventilating and Air Conditioning (HVAC) businesses is driving Carrier's HVAC segment.
Productivity Actions, New Products Aid DuPont (DD)
While DuPont faces headwind from raw material cost inflation, it should gain from productivity improvement actions and investment in new product development, per the Zacks analyst.
Solid Customer Base Boosts Equifax (EFX), Seasonality Hurts
The Zacks Analyst is positive about Equifax's focus on expanding and strengthening its customer base with efforts on delivering multi-data solutions. However, seasonality is a concern.
Sun Life Financial (SLF) Set to Grow on Solid Asia Business
Per the Zacks analyst, Sun Life is set for grow on the strength of its Asia business that are expected to provide higher return and growth as well as expanding global asset management business.
Bio-Rad (BIO) qPCR Business Grows Amid Stiff Competition
The Zacks analyst is impressed with robust growth of Bio-Rad's core qPCR business in recent times led by strong uptake of the newer generation CFX Opus platform. Stiff competition remains a concern.
Investment, Appalachian Assets Aid National Fuel Gas (NFG)
Per the Zacks analyst National Fuel Gas' systematic investment to further strengthen its midstream operations and strong presence in the Appalachian region will drive its performance.
New Upgrades
Solid Non-Gaming Business Boosts Wynn Resorts (WYNN) Prospects
Per the Zacks analyst, Wynn Resorts is likely to gain from solid non-gaming business and expansion initiatives. Also, focus on development projects like food halls and entertainment center bode well.
New Products & Acquisitions Aid Blackbaud's (BLKB) Performance
Per the Zacks analyst, Blackbaud's performance is gaining from frequent product launches and increasing customer renewal rates. Synergies from recent acquisitions also bode well.
Solid Loans, Restructuring Supports Hilltop Holdings (HTH)
Per the Zacks analyst, Hilltop Holdings is poised for growth given the continued decent rise in loans. Its restructuring efforts to diversify business as a profitable banking operation are impressive.
New Downgrades
NuStar Energy (NS) Hurt by High Debt Burden
The Zacks analyst believes that NuStar Energy's high debt-to-capitalization of 71% is a concern, as it restricts the partnership's financial freedom to tap into growth opportunities.
Macroeconomic Weakness and Forex Volatility Drag Down PTC
Per the Zacks Analyst, challenging global macroeconomic conditions continue to pose as a headwind PTC along with volatile forex dynamics and stiff competition in the CAD and PLM markets.
Higher Costs & Soft Demand Hurt PPG Industries (PPG)
The Zacks analyst is concerned that weaker demand in Europe and China could hurt the company's segment volumes. Higher raw material and logistics costs might also impact its results.n
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Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
DuPont de Nemours, Inc. (DD) : Free Stock Analysis Report
PepsiCo, Inc. (PEP) : Free Stock Analysis Report
HSBC Holdings plc (HSBC) : Free Stock Analysis Report
Carrier Global Corporation (CARR) : Free Stock Analysis Report
