Notizie

Thursday, May 9, 2024

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 The Procter & Gamble Company (PG), Verizon Communications Inc. (VZ) and Intuitive Surgical, Inc. (ISRG). 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’s shares have outperformed the Zacks Soap and Cleaning Materials industry over the past year (+9.9% vs. +8.3%). The company has been gaining from robust pricing and a favorable mix, along with strength across segments.

Procter & Gamble has been focused on productivity and cost-saving plans to boost margins. This led to bottom line beating the consensus mark for the seventh consecutive quarter in third-quarter fiscal 2024. Consequently, PG has provided an optimistic fiscal 2024 view.

However, the company has been witnessing supply-chain issues, higher SG&A costs, higher transportation costs and rising inflation. Its significant international presence exposes it to foreign currency risks, which acts as a headwind.

(You can read the full research report on Procter & Gamble here >>>)

Shares Verizon of have outperformed the Zacks Wireless National industry over the past year (+12.8% vs. +11.7%). The company has reported modest first-quarter results with the bottom line beating the Zacks Consensus Estimate but the top line missing the same. The deployment of a cloud-native, container-based, virtualized architecture has led to increased flexibility, scalability and cost efficiency across its network.

Verizon is offering various mix and match pricing in both wireless and home broadband plans, which has led to solid client additions. Focus on emerging growth services like cloud, security and professional services will likely reap long-term benefits.

However, lower wireline and wireless equipment revenues are major concerns. Huge promotional expenses and lucrative discounts to expand customer base are weighing on margins. High capital expenditure for continuous network upgrade and fiber deployment is a headwind. A muted guidance for 2024 is worrisome.

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

Intuitive Surgical’s shares have outperformed the Zacks Medical - Instruments industry over the past year (+25.7% vs. +4.0%). The company ended the first quarter on a positive note, beating estimates on both counts. Revenues improved year over year. The strong performance is likely to continue in 2024 on the back of continued growth in the company’s da Vinci procedure volume, coupled with strong Ion procedure growth.

ISRG’s initiative to increase the pricing of procedures should also continue to aid in sales growth in 2024.Improving procedure volume along with better system placements and services across all markets will drive top-line growth this year. Launch of da Vinci SP in Europe and da Vinci 5 in U.S. market should drive system placements higher.

However, ongoing supply chain constraints, although easing, are likely to hurt the availability of devices. Labor shortage in hospitals will likely act as a headwind to procedure growth in 2024.

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

Other noteworthy reports we are featuring today include Norfolk Southern Corporation (NSC), Hess Corporation (HES) and The Allstate Corporation (ALL).

Director of Research

Sheraz Mian

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

Featured Reports

Norfolk Southern (NSC) Strong on Dividends Amid Cost Woes
The Zacks analyst is encouraged by the company's efforts to boost shareholder value through dividends and buybacks. However, high costs are worrisome.

Hess (HES) to Benefit From Bakken Shale and Guyana Reserves
Per the Zacks analyst, Hess' notable oil discoveries in the Stabroek Block, offshore Guyana and numerous premium untapped drilling locations in the Bakken shale should boost its production outlook.

Electronic Arts (EA) Banks on Strong Portfolio, User Addition
Per the Zacks Research analyst, expanding user base driven by strength in popular franchises including FIFA and Madden NFL is aiding Electronic Arts' top-line amid stiff competition.

eBay (EBAY) Benefits from Strength in Advertising Business
Per the Zacks analyst, growing momentum across eBay's first-party advertising products on the back of its strong Promoted Listings, is driving growth in its advertising business.

Accretive Acquisitions Aid TopBuild (BLD), High Costs Hurt
Per the Zacks analyst, TopBuild is benefitting from its focus on strategic acquisitions and improving single-family installation business. However, increasing material costs are hurting prospects.

Perrigo's (PRGO) Cost-Saving Initiatives Encouraging
Despite concerns about the macroeconomic pressures like currency headwinds and inflation, the Zacks Analyst is encouraged by Perrigo's (PRGO) cost-saving initiatives and efforts to improve margins.

Investments Aid Ormat (ORA), Weak Solvency Pose Threat
Per the Zacks analyst, Ormat Technologies' investment in enhancing manufacturing capacity should boost growth. Yet, its weak solvency position threatens the stock's ability to pay off its debt.

New Upgrades

Rising Premiums and Strong Cash Flows Drive Allstate (ALL)
Per the Zacks analyst, Allstate benefits from a healthy revenue stream courtesy of a broad product suite and pricing discipline. Also, robust cash flows enable investment in business.

Strength in Engine Products Unit Aids Howmet Aerospace (HWM)
Per the Zacks analyst, solid performance of Howmet Aerospace's Engine Products unit, fueled by strength in the commercial aerospace, defense aerospace and industrial markets, will lend it momentum.

Rising Revenues on Solid AUM Drive T. Rowe's (TROW) Financials
Per the Zacks analyst, T. Rowe's solid AUM balance, focus on enhancing product offerings and efforts to broaden distribution reach to international markets will aid its revenues.

New Downgrades

Macro Headwinds and Cautious Customer Spending to Hurt Flex
Per the Zacks analyst, Flex's performance is likely to be affected by macro headwinds across multiple end markets coupled with conservative customer behaviour and rising global tax rates.

High SG&A Costs a Concern for Five Below's (FIVE) Margins
Per the Zacks analyst, rise in SG&A costs due to marketing and payroll costs, along with fixed costs may hit Five Below's margin. It expects operating margin to deleverage in Q1.

Weak End-Market Demand Hurts Skyworks' (SWKS) Prospects
Per the Zacks analyst, Skyworks is suffering from sluggish demand in the mobile end-market demand. Weakness in infrastructure and automotive end markets hurts broad market growth.

Zacks Names "Single Best Pick to Double"

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It’s an American AI company that’s riding low right now, but it has rounded up clients like BMW, GE, Dell Computer, and Bosch. It has prospects for not just doubling but quadrupling in the year to come. Of course, all our picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.

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