Friday, March 13, 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 Toyota (TM), Comcast (CMCSA) and S&P Global (NYSE:SPGI) (SPGI). 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 >>>
Toyota’s shares have outperformed the Zacks Foreign Automotive industry over the past six months (-17.5% vs. -21.2%). The Zacks analyst believes that expanding portfolio of product lines is driving the firm’s prospects.
Toyota’s earnings estimates for fiscal 2020 and 2021 have moved north of late. In order to capitalize on the accelerated global shift to electric cars, the auto giant of Japan is focusing on developing electric and autonomous vehicles. This will bolster the company’s product competitiveness. Its healthy balance sheet, improving cash flows and investor-friendly moves are other positives.
However, anticipating a slowdown in India, China, Indonesia and Thailand, the company narrowed its annual vehicle sales target for fiscal 2020. High research and development expenses on advanced technologies for the development of EVs and driverless cars are also likely to dent near-term margins. As such, investors are recommended to wait for a better entry point.
(You can read the full research report on Toyota here >>>)
Shares of Comcast have lost 12.4% over the past year against the Zacks Cable Television industry’s fall of 8.3%. The Zacks analyst believes that Comcast is benefiting from solid growth in high-speed Internet customers across a number of residential and business services.
The company’s strategy of providing high-speed Internet at an affordable cost plays a pivotal role in improving customer experience. Growing popularity of Xfinity products is also a major catalyst. Moreover, expansion in the wireless user base as well as in the security and automation services customer base is a key driver.
Additionally, Sky’s content strength is expected to drive the subscriber base in Europe. Further, increasing digital video sales hold promise. However, Comcast continues to lose video subscribers due to cord cutting and suffers a high debt level.
(You can read the full research report on Comcast here >>>)
S&P Global’s shares have lost 18.7% over the past three months against the Zacks Business Information Services industry’s fall of 20.5%. The Zacks analyst believes that the company remains well poised to gain from growing demand for business information services.
Buyouts have helped it innovate, increase differentiated content and develop new products. Effective management execution has helped it generate solid cash flow which is utilized for growth initiatives. Dividend payments and share buybacks boost investors' confidence and positively impact earnings per share.
On the flip side, S&P Global remains vulnerable to proceedings, investigations and inquiries with respect to the ratings provided, leading to legal charges, damages or fines. Lower bank loan ratings activity has been weighing on the company's revenues.
(You can read the full research report on S&P Global here >>>)
Other noteworthy reports we are featuring today include Northrop Grumman (NOC), Humana (HUM) and Interactive Brokers Group (IBKR).
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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
Investments Aids Northrop (NOC), High Operating Expenses Hurt
Per the Zacks Analyst, Northrop Grumman's regular investments in growth projects bolsters its future prospects.
Solid Medicare Business Aids Humana (HUM) Despite High Costs
Per the Zacks Analyst, robust Medicare business has helped the company to expand its business, which, in turn, has led to top-line growth.
Electronic Focus Aid Interactive Brokers (IBKR), Costs a Woe
Per the Zacks analyst, development of proprietary software and focus on the Electronic Brokerage segment will aid Interactive Brokers.
Industrial and Laboratory Segments Aid Mettler-Toledo (MTD)
Per the Zacks analyst, Mettler-Toledo is riding on robust industrial and laboratory segments driven by strong core industrial business.
Occupier Outsourcing, Buyouts Bolster CBRE Group (NYSE:CBRE)
Per the Zacks analyst, CBRE Group will gain from strategic acquisitions and improving occupier outsourcing business, though investors' cautious approach amid choppiness in global economy is a concern.
Discovery (DISCA) Drives on Direct-to-Consumer Sales Growth
Per the Zacks Analyst, the increased monetization of direct-to-consumer initiatives in Europe and Asia is driving Discovery's top-line growth.
Rise in Digital Subscribers to Benefit New York Times (NYT)
Per the Zacks analyst, The New York Times Company will gain from rise in digital subscribers. Management projects digital-only subscription revenues to rise in high-teens in first-quarter 2020.
New Upgrades
Strength in Sensor & Transmitter Segments Aid DexCom (DXCM)
Strength in the Sensor and Transmitter segments have been key catalysts for DexCom. The Zacks analyst is also optimistic about a solid guidance for 2020.
Portfolio Strength, Digital Revenues Steers Take-Two (NASDAQ:TTWO)
Per the Zacks analyst, Take-Two's digital revenues is driven by solid demand for NBA 2K20 and NBA 2K19, Grand Theft Auto Online and Grand Theft Auto V games.
Acquisitions Aid Revenue Growth at Ensign Group (ENSG)
Per the Zacks analyst, a number of acquisitions of nursing operations and real estate made by the company has expanded its business portfolio, which in turn, has driven revenue growth.
New Downgrades
Downstream Weakness Weighs on Royal Dutch Shell (LON:RDSa) (RDS.A)
The Zacks analyst is concerned over the weak market sentiment and lower refining margins with respect to the downstream segment, which has pressured Royal Dutch Shell's earnings.
Semtech (SMTC) Grapples with Competition, Pricing Pressure
Per the Zacks analyst, competition in the semiconductor space and resultant pricing pressure will continue to weigh on margins and profitability. Also, slowing demand in China could impact results.
Soft Refining Margins, Lower Sales Weigh on Delek (DK)
The Zacks analyst is concerned over the falling merchandise sales and lower margins with respect to the refining segment, which might pressure Delek's earnings and cash flows.
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Toyota Motor Corporation (TM): Free Stock Analysis Report
S&P Global Inc. (SPGI): Free Stock Analysis Report
Northrop Grumman Corporation (NYSE:NOC): Free Stock Analysis Report
Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis Report
Humana Inc. (NYSE:HUM): Free Stock Analysis Report
Comcast Corporation (NASDAQ:CMCSA): Free Stock Analysis Report
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Zacks Investment Research