The Zacks Analyst Blog Highlights: Caterpillar, General Motors, Citigroup, Northrop Grumman and Walgreens Boots
For Immediate Release
Chicago, IL –September 11, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Caterpillar CAT, General Motors GM, Citigroup C, Northrop Grumman NOC and Walgreens Boots Alliance WBA.
Here are highlights from Monday’s Analyst Blog:
Top Analyst Reports for Caterpillar, General Motors and Citigroup
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 Caterpillar, General Motors and Citigroup. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Caterpillar’s shares have outperformed the Zacks Construction and Mining industry (0.2% vs. 0.1%) in the year-to-date period. The Zacks analyst thinks that Caterpillar’s global machine sales growth rate has been on a downward spiral over the past few months, which is concerning.
Notably, the company’s July global retail sales growth of 4% was marked as the lowest so far this year. The company anticipates earnings per share on the lower end of its guidance of $12.06-$13.06 and sales growth to be modest for 2019. In the Construction Industries segment, North America will likely aid growth while China will be a headwind.
Improving commodity prices will support capital expenditure in the mining sector, which will drive the Resource Industries segment. Investments in expanded offerings and services, and digital initiatives like e-commerce will also fuel growth. Its cost-reduction efforts will help sustain margins despite material cost inflation owing to tariffs.
Shares of General Motors have outperformed the Zacks Domestic Automotive industry over the past six months, gaining 2.5% vs -2%. The Zacks analyst believes that strong demand for profitable trucks and SUVs is aiding General Motors’ revenues.
The company’s hot-selling brands in America like Chevrolet Silverado, Equinox and GMC Sierra are driving the top line. The firm is increasing capacity investment in emerging markets to enhance global sales, and is undertaking several initiatives to make its vehicles more advanced, safer and fuel efficient.
However, high cost of raw materials and rising tariffs amid heightening U.S.-Sino trade tiff may put pressure on the firm’s profitability. As it is, the company’s negative free cash flows and high debt load are causes of worry. Further, frequent recalls act as a headwind. As such, investors are recommended to wait for a better entry point.
Citigroup’s shares have gained 10.4% over the past six months, outperforming the Zacks Major Regional Banks industry, which has gained 2.6% over the same period.
The Zacks analyst believes that Citigroup’s streamlining efforts, along with strategic investments in core business, bode well for the long term. Also, a declining cost base supports its bottom-line improvement.
Steady capital-deployment activities are also commendable. However, pending litigation issues might keep legal expenses elevated. Further, decline in fee income is a concern for the company. Recently, at an investors' conference, chief financial officer Mark Mason commented that trading and investment banking revenues are expected to decline in third-quarter 2019. Further, NII outlook has also been lowered amid more Fed rate cut expectations.
Other noteworthy reports we are featuring today include Northrop Grumman and Walgreens Boots Alliance.
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Citigroup Inc. (C): Free Stock Analysis Report
Northrop Grumman Corporation (NOC): Free Stock Analysis Report
General Motors Company (GM): Free Stock Analysis Report
Caterpillar Inc. (CAT): Free Stock Analysis Report
Walgreens Boots Alliance, Inc. (WBA): Free Stock Analysis Report
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