December 5, 2020

Top Research Reports for Alphabet, Visa & PetroChina

Thursday, September 24, 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 Alphabet (GOOGL), Visa (V) and PetroChina Company (PTR). 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 >>>

Alphabet shares have underperformed the Zacks Internet Services industry in the year-to-date period (+5.3% vs. +11.5%), reflecting the perceived exposure of the company’s ad business to cyclical forces. The Zacks analyst believes that Alphabet’s strengthening cloud unit is aiding substantial revenue growth. Moreover, expanding data centers will continue to bolster its presence in the cloud space.

Further, major updates in its search segment are enhancing the search results, which is a major positive.   Moreover, Google’s robust mobile search is gaining solid momentum. Additionally, strong focus on innovation of AI techniques and the home automation space should aid business growth in the long term.

Also, its deepening focus on wearables category remains a tailwind. However, the company’s growing litigation issues and increasing expenses might hurt profitability. Further, the company faces persistent pressure from advertisers to tighten controls on YouTube video service. This remains a concern.

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

Shares of Visa have gained +11.5% over the past year against the Zacks Financial Transaction Services industry’s rise of +5.8%. The Zacks analyst believes that numerous acquisitions and alliances together with technology upgrades have paved the way for long-term growth for Visa.

The acquisition of Visa Europe is a growth strategy as well. Its strong balance sheet enables it to make acquisitions and fund capital expenditure. Its strong cash position enables effective capital deployment measures for its shareholders.

Meanwhile, Visa’s high operating expenses owing to personnel-related costs have put operating margins under pressure. Also, ramped-up client initiatives might dent the top line. It is likely to see a slowdown in cross-border business due to the coronavirus outbreak.

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

PetroChina shares have lost -8.7% over the past six months against the Zacks International Integrated Oil industry’s fall of -12.5%. The Zacks analyst believes that the stock stands to gain from higher energy production and lower lifting costs.

PetroChina’s E&P unit posted 7% increase in production in the first six months of 2020, while oil and gas lifting costs were down 14% from what it averaged in the first half of last year. However, the historic oil price crash has hit PetroChina hard.

Further, in a sign of weakness in the company’s downstream business, earnings plunged due to depressed domestic demands, lower refined products sales and a drop in price.

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

Other noteworthy reports we are featuring today include UnitedHealth Group (UNH), SAP SE (SAP) and Honeywell International (HON).

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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

Alphabet (GOOGL) Rides on Diversification; Legal Troubles Ail

Increasing Revenues, Solid Balance Sheet Aid Visa (V)

Upstream Unit Buoys PetroChina (PTR) Amid Gas Import Losses

Featured Reports

Solid Top Line & Strong Cash Flows Drive UnitedHealth (UNH)

Per the Zacks analyst, strategic initiatives have enhanced the company’s capabilities, which in turn have boosted the top line.

SAP Banks on S/4HANA Platform Growth & Expanding Clientele

Per the Zacks analyst, robust adoption of S/4HANA and other cloud-based offerings have supported SAP’s top line.

Intelligrated Unit Aids Honeywell (HON), Demand Stays Soft

Per the Zacks analyst, strength in Honeywell’s Intelligrated and warehouse automation business units will lend momentum to the company.

Unique Products Aid Fidelity (FIS), High Debt Levels A Woe

Per the Zacks analyst, Fidelity’s innovative products make it well poised to benefit from the digitization drive being witnessed in the financial sector.

Mondelez (MDLZ) Organic Sales Gain on Solid Pricing Actions

Per the Zacks analyst, Mondelez’s organic sales have been gaining from its strategic pricing initiatives. During the second quarter, balanced pricing aided organic sales growth of 0.7%.

Cost Control to Drive Caterpillar (CAT) Amid Weak Demand

Per the Zacks analyst, Caterpillar’s focus on cutting down costs will help sustain margins despite the weak demand owing to the impact of the coronavirus pandemic.

Enterprise (EPD) Poised to Gain from $5.6B Growth Projects

The Zacks analyst expects Enterprise Products to generate additional cash flow from growth capital projects of $5.6 billion. However, the partnership’s debt-burden is concerning.

New Upgrades

FTI Consulting (FCN) Rides on Portfolio & Network Strength

The Zacks analyst is impressed by FTI Consulting’s ability to offer damage assessment, accounting, economics, statistics, finance, and industry on a single platform, which attracts clients globally.

Strong Product Offerings, Buyouts to Aid Cimpress (CMPR)

Per the Zacks analyst, strength in Cimpress’ home decor unit, strong product offerings, and the BuildASign buyout will ensure growth for the company.

Investment in Technology, Cost Control Aid MoneyGram (MGI)

Per the Zacks analyst, investments in technology have expanded the company’s digital payment platform; its cost-control efforts will help to protect margins when the topline growth is facing pressure.

New Downgrades

Foot Locker (FL) Grapples With Soft Gross Margin & Currency

Per the Zacks analyst, Foot Locker’s gross margin has been under pressure due to lower merchandise margin rate and a promotional environment.

Sabre’s (SABR) Prospects Dampened as Coronavirus Hits Travel

Per the Zacks analyst, Sabre’s near-term prospects look gloomy as the coronavirus crisis is hurting the travel industry, thus affecting its travel bookings, financial condition and operating results.

Soft BSD Sales to Hurt ODP Corporation’s (ODP) Top Line

Per the Zacks analyst, soft Business Solutions Division’s sales is a concern for ODP Corporation. In second-quarter 2020, the division’s sales declined 23% due to the ongoing coronavirus pandemic.

Click to get this free report

Visa Inc. (V): Free Stock Analysis Report

UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report

SAP SE (SAP): Free Stock Analysis Report

PetroChina Company Limited (PTR): Free Stock Analysis Report

Honeywell International Inc. (HON): Free Stock Analysis Report

Alphabet Inc. (GOOGL): 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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