Top Analyst Reports for Alphabet, Procter & Gamble & Linde
Friday, July 21, 2023
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 Inc. (GOOGL), The Procter & Gamble Company (PG) and Linde plc (LIN). 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 outperformed the broader market this year (+36.3% vs. +18.9% for the S&P 500 index), though they have performed essentially in-line with the Zacks Tech sector. The company’s strong cloud division 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.
Also, 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. Also, Alphabet’s expanding presence in the autonomous driving space is contributing well. Its growing efforts to gain foothold in the healthcare industry are other positives. We expect to hear more about the company's AI efforts on the Q2 earnings call on July 25th.
However, sluggishness in the company’s advertisement business remains a major headwind. Also, its growing litigation issues and increasing expenses are concerns.
(You can read the full research report on Alphabet here >>>)
Shares of Procter & Gamble have modestly outperformed the Zacks Soap and Cleaning Materials industry over the past six months (+8.1% vs. +7.2%). The company continued its robust top and bottom-line surprise trend for the third consecutive quarter in third-quarter fiscal 2023. Also, sales and earnings grew year over year.
The company’s organic sales grew, driven by robust pricing and a favorable mix, along with strength across segments. It has been focused on productivity and cost-saving plans to boost margins. Consequently, it raised the sales view to 1% growth compared with our estimate of a 1.1% rise for fiscal 2023.
However, the company has been witnessing supply-chain issues, higher transportation costs, geopolitical challenges, currency headwinds and rising inflation. As a result, the company retained its drab earnings view for fiscal 2023. Also, an unfavorable currency has been concerning.
(You can read the full research report on Procter & Gamble here >>>)
Linde shares have outperformed the Zacks Chemical - Specialty industry over the past year (+35.6% vs. +14.9%). The company is making the world more productive by the day with wide range of applications for its industrial gases. Linde’s primary products in industrial gases include oxygen, which is used as life support in hospitals.
Linde has long-term contracts with on-site customers backed by minimum purchase requirements, thereby securing stable cashflows. In the profitable industrial gas market, the merger of Praxair and Linde has created an efficient player with considerable size advantages.
However, declining free cashflow is a concern, reflecting weakness in operating activities. Moreover, the company is extremely vulnerable to uncertainty associated with the slowdown of economic growth, as this could hurt demand for its industrial gases.
(You can read the full research report on Linde here >>>)
Other noteworthy reports we are featuring today include Comcast Corporation (CMCSA), Intuitive Surgical, Inc. (ISRG) and Elevance Health, Inc. (ELV)
Director of Research
Sheraz Mian
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
Solid Momentum in Cloud Business Benefits Alphabet (GOOGL)
P&G's (PG) Productivity & Cost Savings Plan to Aid Margins
Linde's (LIN) Contracts With Minimum Volume Requirements Aid
Featured Reports
Wireless Subscriber Gain Drives Comcast's (CMCSA) Prospects
Per the Zacks Analyst, Comcast benefits from an expanding wireless subscriber base as well as strong adoption of Xfinity and Peacock.
Elevance's (ELV) Strategic Buyouts & Product Expansion Aid
Per the Zacks analyst, acquisitions, partnerships and product expansions are helping Elevance Health boost its portfolio, leading to steady revenue growth. Yet, rising costs are denting profits.
Marathon (MPC) Gains from Sale of Speedway Retail Unit
The Zacks analyst likes Marathon's sale of Speedway business, which provided a much-needed cash infusion and came with a supply agreement ensuring a steady revenue stream.
Robust Demand Aid Caesars Entertainment, High Costs Ail
Per the Zacks analyst, Caesars Entertainment is benefiting from a pent-up consumer demand and improved marketing capabilities. However, high costs, weather and construction related woes hurt.
Strong Demand for IVL Aids ShockWave Medical's (SWAV) Growth
Per the Zacks analyst, sustained clinical acceptance and penetration of IVL is promising for ShockWave Medical. The first-quarter results were driven by strength across the entire Shockwave franchise.
Investment, Appalachian Assets Aid National Fuel Gas (NFG)
Per the Zacks analyst National Fuel Gas' systematic investment to further strengthen its midstream operations and strong presence in the Appalachian region will drive its performance.
Expansion Goal Aids ICF International (ICFI), Debt Load Ails
The Zacks Analyst is positive about ICF's focus on expansion of its commercial businesses and strengthening technology-based offerings. However, low liquidity is worrisome.
New Upgrades
Intuitive Surgical's (ISRG) da Vinci System Helps Offset Risks
Per the Zacks analyst, growing adoption of Intuitive Surgical's da Vinci system is driving its revenues as well as helping offsetting risks like COVID-19 resurgences and rising costs.
Lamb Weston's (LW) Top Line Benefits From Robust Price/Mix
Per the Zacks analyst, Lamb Weston's sales have been gaining on pricing actions undertaken across core business units to counter cost inflation. In third quarter, price/mix increased in all segments.
G-III Apparel's (GIII) Digital Business Appear Promising
Per the Zacks analyst, G-III Apparel's digital business reported solid growth of above 20%, mainly backed by building the Amazon business. Solid gains from its brands are also contributing to results.
New Downgrades
Weak Demand, Turnaround Costs Ail Dow (DOW)
Per the Zacks analyst, plant turnaround costs will exert pressure on the company's margins. It also faces headwinds from weaker demand in Europe due lower consumer spending.
CommScope (COMM) Plagued by Weak Demand, Inflationary Headwinds
Per the Zacks analyst, sluggish demand trends, lower spending from cable operators due to macroeconomic uncertainty and inflationary pressures will likely strain CommScope's margins.
Pressure on NIM, Provisions Hurt Commerce Bancshares (CBSH)
Per the Zacks analyst, rise in funding costs and waning loan demand will likely put Commerce Bancshares' NIM under pressure. Worsening asset quality due to economic slowdown expectations is a concern.
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Comcast Corporation (CMCSA) : Free Stock Analysis Report
Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
Linde PLC (LIN) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Elevance Health, Inc. (ELV) : Free Stock Analysis Report
