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Friday, March 6, 2020
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Alphabet (NASDAQ:GOOGL) (GOOGL), Procter & Gamble (PG) and Royal Dutch Shell (LON:RDSa) (RDS.A). 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’s shares have outperformed the Zacks Computer Software industry over the past six months (+9.1% vs. +5.4%). 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.
Further, 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 Procter & Gamble have gained +23.5% over the past year against the Zacks Soap and Cleaning Materials industry’s rise of +15.2%. The Zacks analyst the company’s solid second-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 productivity efforts, robust volume, favorable mix and pricing. Total productivity cost savings aided core currency-neutral gross and operating margin by 120 bps and 220 bps, respectively. Further, it delivered adjusted free cash flow productivity of 100%.
Backed by strong organic sales growth, core earnings and returns to shareholders in the fiscal second quarter, the company raised its view for fiscal 2020. However, currency fluctuations remain concerning. Nevertheless, gains from acquisitions and divestitures are likely to partly offset the currency headwinds.
(You can read the full research report on Procter & Gamble here >>>)
Royal Dutch Shell’s shares have gained +11.7% over the past three months against the Zacks International Integrated Oil industry’s rise of +0.6%. The Zacks analyst believes that Royal Dutch Shell’s position as a key supplier of liquefied natural gas should further benefit its long-term cash flow growth on the back of attractive growth opportunities.
With a current dividend yield of more than 8%, Shell is an attractive pick for long-term investors. While the company has not raised payout since 2014, it still offers the highest yield in its group. Thus, the company's dividend appears safe & reliable.
Europe's largest oil company’s Q4 earnings missed analysts' expectations stemming from lower oil and gas prices. There are worries over the company’s poor reserve replacement ratio thereby raising concerns about future production. Hence, the stock warrants a cautious stance.
(You can read the full research report on Royal Dutch Shell here >>>)
Other noteworthy reports we are featuring today include Alibaba (NYSE:BABA) (BABA), Amgen (AMGN) and Enterprise Products (EPD).
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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>>>
Amgen (AMGN) Counts on Growth Drugs Amid Biosimilar Woes
The Zacks analyst believes that while Amgen's growth drugs like Prolia, Evenity, Aimovig, Otezla and biosimilars will drive sales in 2020.
Enterprise (EPD) Rides on Midland & ECHO Storage Expansions
Per the Zacks analyst, Enterprise's Midland & ECHO oil storage expansion projects in the Permian will drive growth.
$7.5B Investment, Renewable Energy Focus Aid Evergy (EVRG)
Per the Zacks analyst Evergy's $7.5 billion investment in the 2020-2024 time frame to strengthen its operation and plans to produce more electricity from renewable sources will boost its performance.
Robust Cash Flow to Boost Magellan (MMP) Amid Debt Burden
The Zacks analyst believes that Magellan Midstream's growing distributable cash flow should help it hike payouts.
Protiviti Aids Robert Half (RHI) Amid Rising Expenses
Per the Zacks Analyst, Robert Half's subsidiary Protiviti is currently a double-digit margin and revenue performer. Rising expenses remain a drag on the company's bottom line.
Renewable Energy & Conservation Segment Aids Gibraltar (ROCK)
Per the Zacks analyst, solid performance of Renewable Energy and Conservation segment to drive Gibraltar performance.
Alibaba (BABA) Drives On New Investments & Cloud Growth
Per the Zacks analyst, Alibaba continues to benefit from its strong core e-commerce business, new investments in Asia, international growth opportunities and growing cloud computing services.
High Manufacturing Costs Ails American Axle's (AXL) Margins
Per the Zacks analyst, higher manufacturing costs due to material freight and inflationary pressures along with program launch costs to negatively impact the firm's profit margin.
Higher Costs & Forex Woes to Hurt United Technologies (NYSE:UTX)
Per the Zacks analyst, escalating cost of sales and high debt level with unfavorable foreign currency movements amid challenging macroeconomic conditions might mar United Technologies' performance.
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Royal Dutch Shell PLC (RDS.A): Free Stock Analysis Report
Procter & Gamble Company (The) (NYSE:PG): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Enterprise Products Partners L.P. (EPD): Free Stock Analysis Report
Alibaba Group Holding Limited (BABA): Free Stock Analysis Report
Amgen Inc. (NASDAQ:AMGN): Free Stock Analysis Report
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