Wednesday, February 26, 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 Tesla (NASDAQ:TSLA) (TSLA), Enbridge (ENB) and DuPont (NYSE:DD) de Nemours (DD). 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 >>>
Tesla’s shares have outperformed the Zacks Domestic Automotive industry over the past year (+154.2% vs. +37.5%). The Zacks analyst believes that rising Model 3 delivery, which forms bulk of the automaker’s overall deliveries, is aiding the company’s top-line growth.
With Model 3 sedan being its flagship vehicle, Tesla has established itself as a leader in the EV segment. Tesla’s upcoming product launches, including Model Y and Semi Truck, are expected to further boost prospects.
However, with China being an important market for Tesla, economic slowdown in the country is weighing on the firm. Tesla’s massive debt and high capex also play spoilsports. Waning demand for Model S/X is another concern. Thus, investors are advised to wait for a better entry point.
(You can read the full research report on Tesla here >>>)
Shares of Enbridge have gained +21.2% in the past six months against the Zacks Oil Production and Pipeline industry’s rise of +2.7%. The Zacks analyst believes that reduced contributions from Canadian Gas Transmission businesses have been affecting the firm.
The company has a total of $11 billion of low-risk inventory of midstream growth projects that will be going online since 2020 through 2023. Thus, the firm has secured additional stable fee-based revenues for the years to come. Moreover, Enbridge has been strongly committed to returning cash to shareholders.
The company recently received authorization from the board of directors to hike the quarterly dividend payout for 2020. However, Enbridge recently reported weak fourth-quarter earnings due to lower contributions from Mainline System. The firm’s significant exposure to debt is also a concern.
(You can read the full research report on Enbridge here >>>)
DuPont de Nemours’ shares have lost -27.6% over the past three months against the Zacks Diversified Chemicals industry’s fall of -13.9%. The Zacks analyst believes that DuPont will benefit from its ongoing investment in innovation and new product development. New product launches across high growth markets will drive its top line.
DuPont’s cost and productivity improvement actions should also support its margins. The company also remains focused on driving cash flow and shareholder value. Actions to divest non-core assets and focus on growth areas should also boost its performance.
However, weak demand across a number of markets including automotive and semiconductor are likely to hurt DuPont’s volumes. Weak pricing is also expected to weigh on its sales and margins in 2020. The company also faces headwinds from higher manufacturing costs and unfavorable currency swings.
(You can read the full research report on DuPont de Nemours here >>>)
Other noteworthy reports we are featuring today include HP (HPQ), Delta Air Lines (NYSE:DAL) (DAL) and Palo Alto Networks (PANW).
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Mark Vickery
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>>>
Today's Must Read
Featured Reports
HP (HPQ) Rides on Growing Demand From Commercial Customers
Per the Zacks analyst, HP is benefiting from the increasing sales of commercial PC, which is backed by Windows 10 refresh cycle.
Passenger Revenues, Dividends & Buybacks Aid Delta (DAL)
The Zacks analyst is impressed by the company's efforts to reward its shareholders . Passenger revenue growth (up 6% in 2019) on the back of strong demand for air travel is also encouraging.
Palo Alto Networks (PANW) Rides on Product Upgrades, Buyouts
Per the Zacks analyst, Palo Alto's focus on product refreshes and prudent acquisitions like that of Twistlock and PureSec will steadily widen its portfolio and global reach.
Markel (MKL) Continues to Gain From Strategic Acquisitions
Per the Zacks analyst, strategic acquisitions have helped Markel to achieve profitable growth in insurance operations and boost its surety capabilities.
Teva's (TEVA) May Resume Growth in 2020 Amid Litigation Woes
The Zacks analyst believes with success on restructuring activities and stabilization in generics business, Teva may return to growth in 2020.
Organic Growth, Strategic Acquisitions Aid Jones Lang (JLL)
Per the Zacks Analyst, solid growth in Real Estate Services segment aided Jones Lang LaSalle's improvement. Strategic buyouts and technology investments provide it a competitive edge.
Focus on Oil Assets, Cost Savings Aid Devon Energy (NYSE:DVN)
Per the Zacks analyst Devon's focus on oil rich U.S. assets post divestment of non-core assets and cost management initiatives will boost its performance.
New Upgrades
Rising Demand, Vale Fertilizantes Buyout Drive Mosaic (MOS)
The Zacks analyst believes that Mosaic is well placed to gain from increasing global demand for fertilizers. The Vale Fertilizantes acquisition should also deliver significant synergies.
Avis Budget (CAR) Benefits From Acquisitions, Fleet Growth
The Zacks analyst is encouraged by Avis Budget's buyout strategy to expand global footprint and brand presence. Expansion of connected cars fleet has helped streamline operations and reduce costs.
Omni-Channel Endeavors to Drive Michaels' (MIK) Top Line
Per the Zacks analyst, Michaels Companies' focus on integrating e-commerce and in-store operations to enhance the omni-channel experience bode well. It is benefiting from the BOPUS facility.
New Downgrades
Baker Hughes (BKR) Hurts By Conservative Upstream Capex
The Zacks Analyst raises concern that Baker Hughes' oilfield service business in North America will be affected by lower spending by upstream energy companies.
Weak Product Prices, Outages Hurt Westlake Chemical (WLK)
The Zacks analyst thinks that weak prices for major products including polyethylene and caustic soda as well as costs related to maintenance outages will weigh on the company's margins.
LG Dependence & Competition Ail Universal Display (OLED)
Per the Zacks analyst, significant customer concentration from LG and Samsung (KS:005930) remains an overhang for Universal Display. Stiff competition and weakness in smartphone space add to its woes.
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Tesla, Inc. (TSLA): Free Stock Analysis Report
Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report
HP Inc. (NYSE:HPQ): Free Stock Analysis Report
Enbridge Inc (ENB): Free Stock Analysis Report
DuPont de Nemours, Inc. (DD): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
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