Top Research Reports for Coca-Cola, American Tower & Schlumberger
Friday, August 25, 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 The Coca-Cola Company (KO), American Tower Corporation (AMT) and Schlumberger Limited (SLB). 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 >>>
Shares of Coca-Cola have gained +2.0% over the past six months against the Zacks Beverages - Soft drinks industry’s gain of +6.4%. The company’s sales beat the consensus estimates for the 10th straight quarter in second-quarter 2023. The company reported second consecutive quarter of bottom-line beat. Earnings and sales also improved year over year.
KO’s results benefited from the continued momentum in its business. Sales gained from revenue growth across its operating segments, aided by an improved price/mix and a rise in concentrate sales. It is poised to gain from innovations and accelerating digital investments.
It provided an upbeat guidance for 2023. The Zacks analyst anticipate organic revenue growth of 9% for 2023. However, shares of Coca-Cola lagged the industry in the past year. Pressures from higher supply chain costs, higher marketing spends and currency headwinds are concerning.
(You can read the full research report on Coca-Cola here >>>)
American Tower extensive and geographically diversified communication real estate portfolio is well-poised to benefit from the high capital spending by wireless carriers amid the incremental demand from global 4G and 5G deployment efforts, growing wireless penetration and spectrum auctions.
Its resilient and stable business model assures steady revenues. The Zacks analyst expect a year-over-year increase in property revenues of 3.3% in 2023. The company’s focus on macro-tower investment opportunities has enabled it to fortify its position in the global market, aiding growth.
Moreover, strategic buyouts and a solid balance sheet poise it well to capitalize on the secular trends of the industry. Further, with a lower-than-industry dividend payout and solid operating fundamentals, we expect its dividend distribution to be sustainable over the long run.
(You can read the full research report on American Tower here >>>)
Schlumberger shares have outperformed the Zacks Oil and Gas - Field Services industry over the past year (+46.7% vs. +39.7%). The company is a well-known name for providing diversified oilfield services and products to companies belonging to the energy sector. Being a leading technology provider for complex oilfields, the company is well-positioned to take up new offshore projects in international markets.
SLB expects upstream spending across the globe to continue growing, which could increase demand for well completion activities. With broad-based growth in overall activities, SLB expects to benefit from the increased service pricing. Also, SLB reported strong second-quarter earnings due to higher stimulation services and strong activities across all areas.
However, the cost of revenue continues to rise, affecting its income statement. Also, the aggressive capital budget remains a headwind for the company. As such, the stock warrants a cautious stance.
(You can read the full research report on Schlumberger here >>>)
Other noteworthy reports we are featuring today include CME Group Inc. (CME), NXP Semiconductors N.V. (NXPI) and Lululemon Athletica Inc. (LULU).
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
Coca-Cola's (KO) Digital Investments to Aid the Top Line
5G Buildout Boosts Demand for American Tower's (AMT) Assets
SLB Likely to Gain From Increased Oilfield Service Demand
Featured Reports
CME Group (CME) Rides on Improving Top Line, Expenses Hurt
Per the Zacks analyst, CME Group's strong revenues driven by organic growth, steady market position and diverse product lines has led to significant growth. However, higher expenses remain a concern
Automotive Market Momentum Aids NXP Semiconductors (NXPI)
Per the Zacks analyst, NXP Semiconductors is benefiting from growing momentum in automotive market owing to innovation in system solutions.
Digital Investments Likely to Aid lululemon's (LULU) Sales
Per the Zacks analyst, lululemon is heavily investing in e-commerce capabilities like developing sites, transactional omni functionality and fulfillment options to capture the robust online demand.
Solid LTL Unit Aids Old Dominion (ODFL), High Capex Hurts
The Zacks analyst is impressed by Old Dominion's strong performance in the LTL segment owing to improved freight conditions. However, escalating expenses hurt.
IDEXX (IDXX) Rides on Strong CAG Growth, Forex Woe Ail
The Zacks analyst is impressed with CAG Diagnostics witnessing high market demand banking on advanced diagnostic capabilities that meet veterinarians' diverse needs. Forex woes remain a concern.
Strong Telecom Market Momentum Aids Advanced Energy (AEIS)
Per the Zacks analyst, improved component availability is driving Advanced Energy's momentum across telecom and networking end market.
JetBlue's (JBLU) Fleet-Upgrade Efforts Aid, Labor Costs Ail
JetBlue's fleet modernization program is resulting in significant cost savings. The Zacks analyst, however, finds the increasing labor costs at JBLU very concerning.
New Upgrades
Brown & Brown (BRO) Gains on Solid Organic, Inorganic Growth
Per the Zacks analyst, Brown & Brown is set to grow on strategic acquisitions and mergers, which enhance its capabilities. Also, higher commissions and fees position it well for growth.
Skechers (SKX) Gains From Solid Demand With Strength in DTC
Per the Zacks analyst, the impressive performance of Skechers' direct-to-consumer (DTC) unit, fueled by robust demand for comfort technology footwear products, will continue to lend momentum.
Solid Comps Growth Aid BJ's Restaurants (BJRI) Performance
Per the Zacks analyst, BJ's Restaurants is benefiting from strong comparable restaurant sales, driven by increased average check and menu pricing. Also, focus on sales-building initiatives bodes well.
New Downgrades
Challenges in Crop Science Business Impact Bayer (BAYRY)
Per the Zacks analyst, lower volumes and decreased prices for glyphosate-based products in the Crop Science division continues to pull down growth. High levels of debt is a concern for Bayer.
Geopolitical Risk, Competition Ail TotalEnergies (TTE)
Per the analyst TotalEnergies (TTE) presence across the globe exposes it to geopolitical risk and rising competition among the international energy majors is also a headwind.
Weak Residential Kitchen Equipment Unit Hurt Middleby (MIDD)
Per the Zacks analyst, Middleby is experiencing softness in the Residential Kitchen Equipment segment due to inventory destocking and tough end market conditions. Forex woes are an added concern.
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American Tower Corporation (AMT) : Free Stock Analysis Report
CME Group Inc. (CME) : Free Stock Analysis Report
CocaCola Company (The) (KO) : Free Stock Analysis Report
Schlumberger Limited (SLB) : Free Stock Analysis Report
lululemon athletica inc. (LULU) : Free Stock Analysis Report
NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report
