Top Research Reports for Costco, Booking & PNC Financial

Thursday, October 24, 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 Costco (COST), Booking Holdings (BKNG) and PNC Financial (PNC). 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 >>>

Costco’s shares have outperformed the Zacks Discount Retail industry year to date (46% vs. 42.8%). The Zacks analyst believes that growth strategies, increase in membership fees and impressive e-commerce sales bode well for the company. Costco continues to be one of the dominant retail wholesalers based on the breadth and quality of merchandise offered.

The stock has been gaining from sturdy comps and decent results. The company posted positive earnings and sales surprise in the fourth quarter of fiscal 2019. Notably, the top and the bottom line continued to register year-over-year improvement. Certainly, Costco seems somewhat unfazed by a tough retail scenario.

The company’s efforts have been driving traffic across online and brick-and-mortar platforms. However, any incremental investments or aggressive pricing strategy may hurt margins. Moreover, rising SG&A expenses and stiff competition also pose concerns.

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

Shares of Booking Holdings have gained 8.9% in the past six months against the Zacks Internet Commerce industry’s decline of 8.7%. The Zacks analyst believes that Booking Holdings is riding on improving gross bookings. The company continues to witness solid growth in the booked room nights.

Its rising mobile share and growing accommodation business are aiding total room nights’ bookings. Further, solid efforts toward ramping up of merchant business remain positive. We believe a secular growth trend in the online travel booking market and increasing mobile usage penetration are tailwinds.

Moreover, the company’s strong position in international markets, growth opportunities in the domestic market and good execution of marketing strategies are major positives. However, sluggishness in the rental car days poses risk. Moreover, macro headwinds, increasing advertising spend and occupancy tax-related litigation remain concerns. 

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

PNC Financial’s shares have gained 3.9% over the past three months against the Zacks Major Regional Banks industry’s rise of 4.3%. The Zacks analyst believes the company’s third-quarter results reflect robust organic growth, partially offset by higher expenses and provisions.

The company's commitment to expand middle market lending franchise and expand its digital products and services offerings bodes well. Moreover, execution of inorganic strategies in order to diversify revenue sources is likely to continue bolstering fee income.

However, with growing business and investment in technology, its expense base is expected to keep rising. Also, lack of diversification in loan portfolio is a headwind.

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

Other noteworthy reports we are featuring today include Boeing (BA), The Southern Company (SO) and General Dynamics (GD).

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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

Decent Comparable Sales Run to Fuel Costco's (COST) Top Line

Solid Gross Bookings Momentum Aids Booking Holdings (BKNG)

Attractive Business Mixes Aid PNC, Increasing Costs a Woe

Featured Reports

Defense Budget, Embraer JV to Boost Boeing's (BA) Growth

Per the Zacks analyst, expansionary U.S. budgetary provisions should boost Boeing's defense business. Its upcoming joint venture with Embraer will bolster its footprint in the global aerospace market.

Southern Company (SO) Buoyed by Regulated Customer Growth

The Zacks analyst believes that steady increase in Southern Company's regulated business customer base should support its revenue growth.

Rising Demand Aids General Dynamics (GD), Competition Hurts

Per the Zacks Analyst, a strong rise in demand for the company's varied defense products leads to organic growth.

Midstream Assets Aid Phillips 66 (PSX), Chemicals Unit Ails

Per the Zacks analyst, Phillips 66 is strategically positioned to gain from the growing need for U.S. midstream assets.

Brightree Continues to Boost ResMed's (RMD) SDB Device Sales

The Zacks analyst is bullish about ResMed's series of new-generation sleep apnea device launches post the inclusion of Brightree.

Arch Capital (ACGL) Set to Grow on Improving Premium

Per the Zacks analyst, Arch Capital is set to grow on solid Insurance and Reinsurance business driving improvement in premiums.

Acquisitions Likely to Drive Lamb Weston's (LW) Bottom Line

Per the Zacks analyst, Lamb Weston's buyouts have aided volume and bottom line growth. The BSW buyout is likely to contribute nearly $10 million to earnings in the first half of fiscal 2020.

New Upgrades

Cadence (CDNS) Rides on EDA, Hardware & IP Solutions Demand

Per the Zacks analyst, Cadence benefits from solid demand of its broad based product portfolio. Traction witnessed by Palladium Z1 and EDA-optimized Cloud-Hosted Design solution is also a positive.

Brown & Brown (BRO) Rides on Solid Organic, Inorganic Growth

Per the Zacks analyst, the company's mergers and acquisitions and increasing revenues, commission and fees drive its overall growth.

PulteGroup's (PHM) Focus on Entry-Level Buyers Bodes Well

Per the Zacks analysts, higher demand owing to favorable housing dynamics, backed by lower interest rates, and focus on entry-level buyers are expected to benefit PulteGroup.

New Downgrades

Weakening Steel Prices, Raw Materials Unit Ail Nucor (NUE)

The Zacks analyst thinks softening U.S. steel prices will be a drag on Nucor's profitability. The company's Raw Materials segment also faces challenges from weak performance of its DRI businesses.

Higher Programming Costs, Stiff Competition Hurts CBS (CBS)

Per the Zacks analyst, CBS is negatively impacted by higher programming costs associated with the premieres of new shows amid intensifying competition in the media industry.

Margin Pressure, Higher Expenses Hurt Bank OZK (OZK) Growth

Per the Zacks analyst, lower interest rates and the Fed's accommodative stance will hurt Bank OZK's net interest margin.

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Southern Company (The) (SO): Free Stock Analysis Report
The PNC Financial Services Group, Inc (PNC): Free Stock Analysis Report
General Dynamics Corporation (GD): Free Stock Analysis Report
Costco Wholesale Corporation (COST): Free Stock Analysis Report
Booking Holdings Inc. (BKNG): Free Stock Analysis Report
The Boeing Company (BA): 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.


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