Tuesday, July 14, 2020
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 Procter & Gamble (PG), Mastercard (MA) and Intel (INTC). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Procter & Gamble’s shares have outperformed the Zacks Soap and Cleaning Materials industry over the past year (+7.4% vs. +1.3%). The Zacks analyst believes that currency fluctuations remain a concern for the company. Due to stronger headwind from foreign exchange rates, the company lowered its all-in sales view for fiscal 2020.
The company’s solid third-quarter fiscal 2020 earnings mark the continuation of its positive surprise trend. Further, earnings and sales improved year over year in the reported quarter on gains from significant sales increase, related fixed cost leverage and ongoing productivity efforts.
Top line gained from organic sales growth, driven by rise in organic shipment volume and better pricing. Total productivity cost savings aided core currency-neutral gross and operating margin by 130 bps and 240 bps, respectively. Further, it delivered adjusted free cash flow productivity of 113% in the fiscal third quarter.
Shares of Mastercard have lost -7.7% over the past six months against the Zacks Financial Transaction Services industry’s fall of -9%. The Zacks analyst believes that the company is gaining from shifts in payments from physical to digital.
Investment in technology keeps it at the forefront of the rapidly-evolving payments industry. The company has announced second-quarter 2020 operating metrics regarding switched volumes, switched transactions and cross-border payments, which reflected stabilization in business volumes. Mastercard is also witnessing buoyant demand for its Data & Analytics and Cyber solutions.
Its solid capital position enables investment in business. However, escalating costs might put pressure on the company’s margins. It also cancelled its annual 2020 outlook for net revenue and operating expense growth due to coronavirus-induced business loss. Share buyback delays and low profitability are other woes.
Intel’s shares have lost -0.5% over the past three months against the Zacks General Semiconductor industry’s rise of +18.2%. The Zacks analyst believes that Intel is benefiting from momentum across both PC-centric and Data-centric domains.
Robust mix of high-performance second-generation Xeon Scalable processors and solid demand from Cloud service providers are expected to drive near-term growth. Moreover, the company is making advancements in the IoT space, courtesy of product introductions and tie ups.
Additionally, Intel is witnessing strong momentum for its first 10-nanometer (nm) mobile CPU. Notably, Intel has not provided 2020 guidance citing coronavirus crisis-induced business uncertainty. Additionally, stiff competition from AMD, higher expenses pertaining to 10-nm ramp up and constrained supply amid coronavirus outbreak remain major concerns.
Other noteworthy reports we are featuring today include PepsiCo (PEP), salesforce.com (CRM) and BP p.l.c. (BP).
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Director of Research
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
Per the Zacks analyst, penetration for PepsiCo's Frito and Quaker Food businesses has improved due to increased snacking habits amid the pandemic.
Per the Zacks analyst, salesforce is benefiting from its diverse cloud offerings, which are helping it to win customers globally.
The Zacks analyst expects BP's upstream projects around the world to fetch significant cash flows for the long-term. However, the COVID-19 pandemic is hurting its refining operations.
Per the Zacks analyst, Caterpillar will gain on its efforts to lower production and control costs actions despite the weak demand owing to the impact of the coronavirus pandemic.
Per the Zacks analyst, a number of acquisitions and collaborations have helped it enhance its capabilities and boost its Medicare business.
Per the Zacks analyst, Advanced Micro Devices is benefiting from robust adoption of latest EYPC, Ryzen and Radeon processors. However, stiff competition from Intel and NVIDIA is a major concern.
The Zacks analyst expects, during the pandemic crisis Boston Scientific's MedSurg arm with a higher mix of non-deferrable procedures to recover faster than the rest of its business segments.
The Zacks analyst believes that Canadian Pacific's freight revenues will increase owing to record transportation of Canadian grain. Its cost-controlling measures are also supporting the bottom line.
Per the Zacks analyst, Principal is set to grow on the strength of retirement and long-term savings business in Latin America and Asia as well as group benefits and protection in the United States.
Per the Zacks Analyst, given the growing demand for solar modules, First Solar continues to expand manufacturing capacity. Its expanding market share across the globe should benefit the stock.
Per the Zacks Analyst, ADTRAN's Network Solutions business is hurt by supply-chain disruptions due to the COVID-19 crisis. The rising cost of goods sold to fend off competition is another concern.
Per the Zacks analysts, coronavirus-induced store closure hurt Children's Place business activities. The company posted soft numbers for first-quarter fiscal 2020, wherein net sales declined 38.1%.
Per the Zacks Analyst, AVEO has suffered a string of pipeline setbacks in the past. Moreover, heavy dependence on partners for the development/commercialization of pipeline candidates remains a woe.
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Procter Gamble Company The (PG): Free Stock Analysis Report
PepsiCo, Inc. (PEP): Free Stock Analysis Report
Mastercard Incorporated (MA): Free Stock Analysis Report
Intel Corporation (INTC): Free Stock Analysis Report
salesforce.com, inc. (CRM): Free Stock Analysis Report
BP p.l.c. (BP): 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.