Top Analyst Reports for P&G, Verizon & Thermo Fisher
Monday, September 28, 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), Verizon Communications (VZ) and Thermo Fisher Scientific (TMO). 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 >>>
Procter & Gamble shares have outperformed the Zacks Soap and Cleaning Materials industry in the year to date period (+11.8% vs. +10.3%). The Zacks analyst believes that the company’s efforts to make its cleaning and personal care products available during the current pandemic have helped bolster sales.
Further, rise in shipment volume and better pricing aided sales in the fourth quarter. Top line gained from organic sales growth, driven by rise in organic shipment volume and better pricing. Encouragingly, it issued an upbeat fiscal 2021 view. Further, cost savings aided core currency-neutral gross and operating margin by 250 bps and 190 bps, respectively.
Also, it delivered adjusted free cash flow productivity of 114% in the fiscal fourth quarter. However, currency fluctuations have weighed on the margins and will likely impact fiscal 2021 results. Additionally, stiff competition remains a woe.
(You can read the full research report on Procter & Gamble here >>>)
Shares of Verizon have lost -1.4% over the past year against the Zacks Wireless National industry’s fall of -2%. The Zacks analyst believes that Verizon is likely to benefit from a disciplined network strategy, including accelerated 5G deployment despite economic uncertainties stemming from the COVID-19 crisis.
Verizon, in association with Amazon Web Services, has added three more 5G mobile edge computing cities — Atlanta, New York City and Washington, DC — bringing the total to five. The company has been building its 5G Ultra Wideband network to enable innovations that will support the changing behavior of customers. Verizon completed the world’s first end-to-end fully virtualized 5G data session in a live network.
It has inked a deal to acquire TracFone — a subsidiary of Mexico’s largest telecommunications company, America Movil. However, Verizon is facing challenges within the media business due to sluggish advertising trends. It operates in a fiercely competitive U.S. wireless market that strains margins. The company is spending heavily on promotion and lucrative discounts to attract customers, which erodes profitability.
(You can read the full research report on Verizon here >>>)
Thermo Fisher shares have gained 50.1% over the past six months against the Zacks Medical Instruments industry’s rise of 31%. The Zacks analyst is encouraged by the exceptionally strong year-over-year revenue growth at Life Sciences Solutions segment. Furthermore, pharma and biotech registered growth on the back of robust performances in bioproduction and pharma services businesses.
The COVID-19 sales also boosted the company’s quarterly results. A strong capital structure looks encouraging. Its second quarter results were better-than-expected. Thermo Fisher has outperformed its industry in the past six months.
However, the coronavirus outbreak has massively disrupted the global supply chain. Two of the end markets registered loss in the first quarter, largely due to customer shutdowns in China.
(You can read the full research report on Thermo Fisher here >>>)
Other noteworthy reports we are featuring today include NVIDIA (NVDA), NIKE (NKE) and Accenture (ACN).
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Sheraz Mian
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
P&G (PG) Gains from Higher Coronavirus-Led Product Demand
5G Portfolio, Partnerships Aid Verizon (VZ) Amid Competition
COVID-19 Test Sales, End Market Growth Aid Thermo Fisher (TMO)
Featured Reports
Strong GPU Adoption in Gaming, Datacenter Aids NVIDIA (NVDA)
Per the Zacks analyst, the rapid adoption of NVIDIA's GPUs in the gaming and datacenter markets is driving top-line.
NIKE's (NKE) Digital Business Aid Top Line Amid the Pandemic
Per the Zacks analyst, NIKE gains from strength in digital business, including its website and activity apps, amid the pandemic.
Accenture (ACN) Rides on Acquisitions Amid Pricing Pressure
The Zacks analyst likes Accenture's buyout strategy to enter new markets, diversify and broaden its portfolio and maintain its leading position.
Subscriber Gain Aids Charter (CHTR) Amid Stiff Competition
Per the Zacks analyst, subscriber growth in spectrum mobile products is benefiting Charter's growth amid rising competition from streaming service providers in the video market.
Deere (DE) Rides on Investments & Cost Control Actions
The Zacks analyst expects Deere to gain from cost-reduction initiatives, growing U.S farm income, and investment in new products with advanced technologies.
Applied Materials (AMAT) Rides on Foundry & Logic Spending
Per the Zacks analyst, strength in semiconductor equipment and strong customer spending in foundry and logic remain growth drivers.
Attractive Business Mixes Aid PNC, Increasing Costs a Woe
Per the Zacks analyst, the execution of strategic initiatives and attractive business profile helps PNC improve its topline.
New Upgrades
Molson Coors' (TAP) Product Innovation to Act As Catalyst
Per the Zacks analyst, Molson Coors plans to tap the growing demand for health drinks through the launch of four innovative non-alcoholic brands.
Improved Ticket Sales & Low Fuel Costs Aid Alaska Air (ALK)
The Zacks analyst is impressed by better ticket sales, which reduced Alaska Air's cash burn. Low fuel prices are a bonus.
Strong Construction Demand to Aid Commercial Metals (CMC)
Per the Zacks analyst, Commercial Metals will gain from elevated construction demand in the United States and Poland, stellar rebar-margin environment as well as robust key end markets.
New Downgrades
Catastrophe Loss, Escalating Expenses Ail Travelers (TRV)
Per the Zacks analyst, higher losses from catastrophes affect the company's underwriting results. Also rising expenses due to general and administrative expenses weigh on margin expansion.
Rising Expenses, Catastrophe Loss Hurt W.R. Berkley (WRB)
Per the Zacks analyst, W.R. Berkley's performance is weighed down by its exposure to catastrophes inducing volatility in underwriting profitability and rising expenses dragging down margins.
Soft International Sales Due to Pandemic Hurts Hasbro (HAS)
Per the Zacks analyst, Hasbro's dismal performance in European, Asia Pacific, and Latin American regions hurt its growth prospect.
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Verizon Communications Inc. (VZ) : Free Stock Analysis Report
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
Procter Gamble Company The (PG) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
NIKE, Inc. (NKE) : Free Stock Analysis Report
Accenture PLC (ACN) : Free Stock Analysis Report
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