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Top Stock Reports For PepsiCo, Walgreens Boots & EOG Resources

Published 01/09/2018, 03:52 AM
Updated 07/09/2023, 06:31 AM

Wednesday, January 9, 2018

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 PepsiCo (PEP), Walgreens Boots (WBA) and EOG Resources (NYSE:EOG). 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 >>>

PepsiCo’s shares have gained +15.7% year to date, underperforming the Zacks Soft Beverages industry, which has increased +17.4% over the same period. However, PepsiCo has been doing well on the back of significant innovation, continued momentum in Frito-Lay business, revenue management strategies, improved productivity and cost-saving initiatives, along with better market execution.

Moreover, an improving economy, better industry pricing dynamics and a consistency in positive innovation bode well. It rolled out several products recently which management believes will drive sales and profits in 2018.

That said, growing health awareness has been hurting the CSD category, resulting in a 4% volume decline in the first nine months of 2017 in North America. Again, rising volatility in global markets and increasing currency headwinds may dampen growth.

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

Shares of Buy-rated Walgreens Boots have done better than the embattled Zacks Drug Stores industry over the last year (WBA is down -10.7% vs. decline of -12.3% for the peer group). Walgreens Boots reported an impressive first quarter of fiscal 2018. The increase in sales at the Retail Pharmacy International is a major positive.

Moreover, Walgreens Boots has been gaining on account of strategic tie-ups, which brought more patients to its U.S. pharmacies. The Zacks analyst likes the Rite Aid stores acquisition deal for which the company got regulatory approval recently. Also, the company is expanding its global footprint with its decision to acquire a 40% stake in Sinopharm Holding Guoda Drugstores in China which should provide a strong impetus to Walgreens Boots’ worldwide retail pharmacy business.

On the flip side, declining sales at the Retail Pharmacy was a disappointment. The company faces tough competition along with currency fluctuations. Also, slowdown in generic introduction continues to weigh on margins.

(You can read the full research report on Walgreens Boots here >>>).

Buy-rated EOG Resources’ shares have gained around +9% over the last one year, outperforming the Zacks Oil & Gas E&P Industry, which has declines -11.1% over the same period. EOG Resources holds premium acreages in the Permian, Bakken and Eagle Ford oil shale plays in the United States.

The Zacks analyst likes the firm’s plan to complete 505 wells in the resources in 2017, significantly higher than 443 recorded in 2016. Notably, during 2016, almost 50% of the wells drilled by the firm met the standard of premium wells. The company expected 80% and 90% of the wells to meet the standards in 2017 and 2018, respectively.

In the promising U.S. shale plays, EOG Resources has identified 8,000 premium wells that can give access to almost 7.3 billion barrels of oil equivalent estimated potential reserves over a period of 10 years. The upstream energy player’s pricing chart history is also impressive.

(You can read the full research report on EOG Resources here >>>).

Other noteworthy reports we are featuring today include Ford (F), Praxair (NYSE:PX) and Analog Devices (ADI).

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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>>>

Featured Reports

PRASM Growth Buoys Delta (DAL) Amid Cost Woes

The Zacks analyst likes Delta's performance with respect to passenger unit revenues (PRASM). Efforts to modernize its fleet also raise optimism. High labor and fuel costs are hurting the bottom line.

Tenet Healthcare (NYSE:THC) Grows on Buyouts, Rising Debt Hurts

Per the Zacks analyst, although Tenet Healthcare's inorganic growth impresses, continuously rising level of debt hurts the bottom line.

WEC Energy (WEC) to Gain From investment & Customer Growth

The Zacks analyst believes WEC Energy will gain from its planned capital expenditure of $11.8B over 2018-2022 and a swelling customer base thanks to improving economic conditions.

Robust Show in Europe & Asia-Pacific Regions Aids Ford (F)

Per the Zacks analyst, strong product mix and pricing are aiding Ford's sales performance in Europe.

Rising Applications of Industrial Gases to Aid Praxair (PX)

Per the Zacks analyst, Praxair will gain from rising applications of industrial gases like hydrogen in refining, oxygen in healthcare, and nitrogen and carbon dioxide in oil & gas industries.

Acquisitions & Loan Growth Bolsters Huntington (HBAN)

Per the Zacks analyst, Huntington's strong liquidity position keeps it well poised to grow through acquisitions.

Analog Devices (ADI) Rides on Emerging Auto Market

The Zacks analyst believes that Analog Devices' strength in the emerging automotive market and contributions from Linear acquisition remain growth catalysts going forward.

New Upgrades

Cboe Global (CBOE) Set to Gain from Trading Volume Growth

Per the Zacks analyst, Cboe Global Markets is set to grow on improving revenues. Sustained growth in transaction fees driven by higher trading volume will continue to drive the top line.

D.R. Horton (DHI) to Benefit from Forestar Group Buyout

The covering analyst stresses that D.R. Horton will benefit from expanding operations in Texas with its recent agreement to buy 75% shares of Forestar Group.

Strategy for 2020 to Fuel Sysco's (NYSE:SYY) Bottom-Line Growth

Per the Zacks analyst, focus on enhancing consumers' experience; optimising business and achieving operational efficacy will help Sysco achieve 2020 target of growing earnings at double-digit rate.

New Downgrades

Flash Drive Market Competition Hurts Silicon Motion (SIMO)

Per the Zacks analyst, intensifying competition in the USB flash drive controller market remains a major headwind. Going forward, dip in smartphone sales will prove to be a drag on the revenues.

Rite Aid's (RAD) Soft Comps Performance to Hurt Top Line

Per the Zacks analyst, Rite Aid's dismal comparable store sales performance driven by lower pharmacy and front-end sales is likely to keep top line growth at bay.

Cord-Cutting, Retransmission Issues Weigh on DISH (DISH)

Per the Zacks analyst, DISH Network (NASDAQ:DISH) continues to lose subscribers due to stiff competition and cord-cutting. Weak liquidity position and retransmission fees-related issues are other risks.



Walgreens Boots Alliance, Inc. (NASDAQ:WBA): Free Stock Analysis Report

Praxair, Inc. (PX): Free Stock Analysis Report

Pepsico, Inc. (NASDAQ:PEP): Free Stock Analysis Report

Ford Motor Company (NYSE:F): Free Stock Analysis Report

EOG Resources, Inc. (EOG): Free Stock Analysis Report

Analog Devices, Inc. (ADI): Free Stock Analysis Report

Original post

Zacks Investment Research

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