Top Research Reports for Alphabet, Danaher & Wells Fargo

Wednesday, August 24, 2022

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), Danaher Corp. (DHR) and Wells Fargo & Co. (WFC). 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 declined -19.6% over the past year against the Zacks Internet - Services industry’s decline of -25.0%. The company’s growing litigation issues and increasing expenses are concerns. However, a 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 search results. Moreover, Google’s mobile search is gaining solid momentum. 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 the wearables category remains a tailwind. Furthermore, the company’s growing efforts to gain a foothold in the healthcare industry are other positives. Also, Alphabet’s expanding presence in the autonomous driving space is contributing well.

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

Danaher shares have declined -10.9% over the past year against the Zacks Diversified Operations industry’s decline of -20.7%. The company’s cost inflation and woes related to supply-chain restrictions might be worrying for the company in the quarters ahead. High debt might inflate financial obligations, and forex woes are likely to be concerning for Danaher.

However, its diversified business structure allows it to mitigate risks in one end market with strength across others. The company stands to benefit from Danaher Business System (“DBS”), healthy rewards to shareholders, buyout benefits and product innovation in the quarters ahead.

Also, solid traction of Danaher’s Life Sciences business, fueled by healthy demand for bioprocessing products, may drive its revenues in the quarters ahead. The company’s measures to reward its shareholders are encouraging.

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

Wells Fargo shares have declined -8.1% over the past year against the Zacks Banks - Major Regional industry’s decline of -17.1%. The company is facing legal hassles and has been penalized with business restrictions and a monetary fine. Restrictions on asset growth will continue to limit loan expansion ability. A decline in originations might limit mortgage banking income.

However, its progress on efficiency initiatives propelled expense control and savings, which are likely to support its bottom line in upcoming period. Strength in the deposit balance will aid the bank’s liquidity position.

The company’s solid liquidity position will help to meet its debt obligations if the economic situation worsens. Also, capital deployment activities seem sustainable.

(You can read the full research report on Wells Fargo here >>>)

Other noteworthy reports we are featuring today include United Parcel Service, Inc. (UPS), Texas Instruments Inc. (TXN), and Equinor ASA (EQNR).

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

Alphabet (GOOGL) Benefits From Cloud & Search Initiatives

Life Sciences Business Drive Danaher (DHR), High Costs Ail

Cost Saving Efforts Aid Wells Fargo (WFC), Top-Line Decline

Featured Reports

Dividends & Buybacks Boost UPS, Cost & Volume Woes Bother
The Zacks analyst is impressed with UPS' efforts to reward its shareholders. Escalated operating expenses are, however, limiting bottom-line growth. Declining shipping volumes are worrisome too.

Automotive & Industrial Growth Aids Texas Instruments (TXN)
Per the Zacks analyst, Texas Instruments is gaining from solid growth in automotive market owing to continued market recovery. Also, strong demand environment in the industrial market is a positive.

Glaxo's (GSK) Specialty Drugs Driving Sales in 2022
Glaxo's specialty products like Dovato, Nucala, Trelegy Ellipta, Shingrix are driving sales, making up for a lower sales of established drugs due to generic erosion, per the Zacks analyst.

Humana's (HUM) Solid Medical Business Aids, High Costs Ail
Per the Zacks Analyst, Humana's robust Medicaid business will help it expand the Retail portfolio, in turn boosting top-line growth. Yet, escalating expenses continue to weigh on margins.

Solid Investments Aid PSEG (PEG) Growth, Weak Solvency Woes
Per the Zacks analyst, Public Service Enterprise Group's, also known as PSEG, consistent investments in infrastructure projects may aid its growth. Yet, its weak solvency position remains a bottleneck

Robust Demand for Concerts Aid Live Nation (LYV), High Debt Ail
Per the Zacks analyst, Live Nation Entertainment benefits from pent-up demand for concerts and robust ticket sales. However, labor costs and inflation along with high debt remain a concern.

Fresenius Medical Care's (FMS) Sales Strong Amid Competition
Per the Zacks analyst, sales of Fresenius Medical Care reflected strong growth so far in 2022 on the back of diverse product & acquisition. However, stiff competition in the niche market is a headwind

New Upgrades

Equinor (EQNR) to Benefit From Rising Clean Energy Demand
The Zacks analyst is impressed by Equinor's massive investments in renewable projects, comprising solar and wind energy. This makes the company poised to capitalize on the rising clean energy demand.

Gartner (IT) Gains From CEB Acquisition, Advisory Strength
Per the Zacks analyst, the blend of analyst-driven advisory services with CEB's best practice and talent management insights helps Gartner provide a differentiated suite of services portfolio.

Technology Upgrade, Fleet Expansion Aid Avis Budget (CAR)
The Zacks Analyst is positive about Avis Budget's expansion of its connected vehicles fleet, allowing operational streamlining and cost reduction. Also, its innovation is a boon.

New Downgrades

Elevated Raw Material Prices, Parts Crisis Ail Gentex (GNTX)
According to the Zacks analyst, soaring commodity and labor costs will weigh down margins for Gentex. Parts shortage, aggravated by the Russia-Ukraine war, is also likely to play spoilsport.

Poly (POLY) Plagued by Supply Chain Woes, Price Volatility
Per the Zacks analyst, dependency on limited group of suppliers is hurting Poly's revenues, with high volatility in raw material prices further compounding problems.

Strained Margins Concern Bed Bath & Beyond (BBBY) Investors
Per the Zacks analyst, Bed Bath & Beyond has been witnessing headwinds related to ongoing supply-chain constraints, rising inflation and higher inventory. This has been hurting the company's margins.

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Wells Fargo & Company (WFC) : Free Stock Analysis Report
 
Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
 
United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
 
Danaher Corporation (DHR) : Free Stock Analysis Report
 
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
 
Equinor ASA (EQNR) : Free Stock Analysis Report
 
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