Technology

Top Analyst Reports for Southern Company, Prologis & Delta Air Lines

Wednesday, July 17, 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 Southern Company (SO), Prologis (PLD) and Delta Air Lines (DAL). 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 >>>

Outperform-rated Southern Company's shares have outperformed the Zacks Electric Power industry year to date, gaining +26.7% vs +14.8%. The Zacks analyst thinks the stock is poised for further capital appreciation, riding on its healthy earnings growth prospects. It is one of the largest and best-managed electric utility holding companies in the United States, dominating the power business across the southeastern region.

With good rate base growth and constructive regulation, it is expected to generate steady earnings and dividend growth in the coming years through long-term power contracts. Additionally, SO's $12 billion AGL buy has significantly increased its customer base and diversified offerings. Investors have also welcomed the U.S. federal government's approval of $3.7 billion in loan guarantees for the Vogtle nuclear plant in Georgia that will help the utility to reduce its costs.

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

Shares of Prologis have outperformed the Zacks REIT and Equity Trust industry in the year-to-date period (+38.7% vs. +19.9%). The company has agreed to acquire warehouse owner Industrial Property Trust, in a deal valued at about $3.99 billion, from Black Creek Group.

The Zacks analyst thinks the move will expand the company’s position in key submarkets. Further, backed by high period-end occupancy, Prologis delivered a healthy performance in Q2 and also raised its outlook. In a rising e-commerce market, industrial real estate assets continue to play a pivotal role.

Companies are making immense efforts to improve supply-chain efficiencies, spurring demand for logistics infrastructure and efficient distribution networks. Given Prologis’ balance-sheet strength, it remains well poised to capitalize on this favorable trend. But rising supply and protectionist trade policies are key concerns.

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

Delta Air Lines’ shares have gained +26.6% year to date, outperforming the Zacks Airline industry's +14.3% increase. Delta delivered an impressive performance in second-quarter 2019, wherein earnings and revenues surpassed expectations. Both the metrics also improved year over year.

Similar to the past few quarters, quarterly results were aided by uptick in passenger revenues on account of strong demand for air travel. Moreover, Delta raised its current-year earnings projection. Also, the company’s board approved a 15% dividend hike. The Zacks analyst thinks initiatives to reduce debt are also impressive.

However, increase in operating expenses mainly due to high non-fuel unit costs remain a concern. Notably, non-fuel unit costs are projected to increase 1-2% in the third quarter. Moreover, technological glitches have been hurting Delta's operations quite regularly.  

(You can read the full research report on Delta Air Lines here >>>).

Other noteworthy reports we are featuring today include eBay (EBAY), Occidental Petroleum (OXY) and Dollar General (DG).

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Mark Vickery
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

Southern (SO) Buoyed by Federal Loan Guarantee for Vogtle

Expansion Moves Amid Industry Tailwinds to Aid Prologis (PLD)

Dividends & Buybacks Buoy Delta (DAL) Amid Cost Woes

Featured Reports

Permian Focus, Anadarko Acquisition to Aid Occidental (OXY)

Per Zacks analyst Occidental's decision to acquire Anadarko Petroleum will expand its operations in resource rich Permian Basin and focus on high-margin region will boost its performance.

Sturdy Comps to Fuel Dollar General (DG), SG&A Costs a Woe

Per the Zacks analyst, Dollar General has long been recording positive comps, which are likely to grow 2.5% in fiscal 2019.

Buyout Aids Parker-Hannifin (PH), High Costs Worrying

Per the Zacks analyst, Parker-Hannifin's revamped "Win Strategy" along with the CLARCOR buyout should boost its growth prospects.

US Output to Aid Marathon (MRO) Amid International Weakness

The Zacks analyst is worried about downtime at the Foinaven complex in the U.K. which may limit revenues.

New Contracts to Aid AAR Corp (AIR), Labor Shortage Ails

Per the Zacks analyst, AAR Corp.'s recent business agreements should enhance its global footprint, thereby boosting top line.

Hyatt (H) Banks on Expansion & Acquisition Amid Competition

Per the Zacks analyst, Hyatt's differentiated brand portfolio, solid expansion plans, loyalty program and acquisition strategies are likely to spur growth.

DCS Unit, Dividends Buoy J.B. Hunt (JBHT) Amid Cost Woes

The Zacks analyst likes the performance of the Dedicated Contract Services (DCS) segment. Efforts to reward shareholders are commendable too.

New Upgrades

Expedia (EXPE) Gains From Robust Gross Bookings & Egencia

Per the Zacks analyst, strong performing Egencia along with increasing gross booking and stayed room nights number will continue to drive the top-line growth of Expedia.

Expedia (EXPE) Gains From Robust Gross Bookings & Egencia

Per the Zacks analyst, strong performing Egencia along with increasing gross booking and stayed room nights number will continue to drive the top-line growth of Expedia.

Acquisitions Aid Acadia Healthcare's (ACHC) Revenue Growth

Per the Zacks analyst, Acadia Healthcare has been emphasizing on acquisitions for faster growth. These buyouts have added facilities, beds and hospitals to its network and aided its top line.

New Downgrades

Lowe's (LOW) Dwindling Margins, Soft View Raise Concerns

Per the Zacks analyst, Lowe's soft margins and trimmed fiscal 2019 earnings view raise concerns. Lack of pricing actions related to cost increases from vendors across several categories hurt margins.

Worsening Asset Quality, High Costs Hurt ICICI Bank (IBN)

Per the Zacks analyst, ICICI Bank's deteriorating asset quality is expected to have an adverse impact on financials in the near-term. Also, higher expenses will hurt bottom line growth to some extent.

Ubiquiti (UBNT) Plagued by Prohibitive Tariffs, Currency Woes

Per the Zacks analyst, Ubiquiti is likely to be stifled by prohibitive tariffs on certain products imported from China. Higher R&D expenses and foreign currency woes ail.


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Southern Company (The) (SO): Free Stock Analysis Report

Prologis, Inc. (PLD): Free Stock Analysis Report

Occidental Petroleum Corporation (OXY): Free Stock Analysis Report

eBay Inc. (EBAY): Free Stock Analysis Report

Dollar General Corporation (DG): Free Stock Analysis Report

Delta Air Lines, Inc. (DAL): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.