Top Research Reports for Linde, S&P Global & AT&T
Thursday, June 15, 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 Linde plc (LIN), S&P Global Inc. (SPGI) and AT&T Inc. (T). 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 >>>
Linde shares have outperformed the Zacks Chemical - Specialty industry (+29% vs. +13.7%) as well as the broader market (+29% vs. +19.3% for the S&P 500) over the past year reflecting robust demand for its industrial gases. The company’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, the cost of sales continues to increase, hurting the firm’s bottom line. Also, high leverage may limit its financial flexibility. The firm has mostly been paying a lower dividend yield than the industry’s composite stocks over the past two years.
(You can read the full research report on Linde here >>>)
Shares of S&P Global have outperformed the Zacks Business - Information Services industry over the past year (+26.1% vs. +15.4%). The company remains well poised to gain from growing demand for business information services. Buyouts help 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.
However, S&P Global remains vulnerable to proceedings, investigations and inquiries with respect to the ratings provided, leading to legal charges, damages or fines. Growth initiatives, higher compensations and incentives raise the company's expenses. Decreasing current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.
(You can read the full research report on S&P Global here >>>)
Shares of AT&T have declined -11.4% over the past year against the Zacks Wireless National industry’s decline of -12.1%. The company is facing a steady decline in linear TV subscribers and legacy services. As the company tries to woo customers with healthy discounts, freebies and cash credits, margin pressures tend to escalate. This is likely to affect its growth potential to some extent. High debt burden is also worrisome.
However, AT&T is focused on business transformation efforts to augment operational efficiency and facilitate optimum resource utilization to enhance value and lower operating costs.
A customer-centric business model alongside a lower churn rate and higher-tier unlimited plans is providing robust growth in its postpaid wireless business. An integrated fiber expansion strategy is expected to improve the broadband connectivity for both enterprise and consumer markets, while steady 5G deployments are likely to boost end-user experience.
(You can read the full research report on AT&T here >>>)
Other noteworthy reports we are featuring today include Oracle Corporation (ORCL), HCA Healthcare, Inc. (HCA) and Moody's Corporation (MCO).
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
Linde's (LIN) Stable Cashflows, Minimum Volume Contracts Aid
S&P Global (SPGI) to Gain From ChartIQ Buyout, Costs High
AT&T (T) Rides on Fiber Densification, Accelerated 5G Rollout
Featured Reports
Oracle (ORCL) Rides on Cloud Suite Adoption & Partnerships
Per the Zacks analyst, Oracle is benefiting from solid adoption of its cloud infrastructure solutions. Partnerships with Accenture and Microsoft is helping the company win new clientele.
Rising Admissions Aid HCA Healthcare (HCA), High Costs Hurt
Per the Zacks analyst, HCA Healthcare's strategic acquisitions and rising admissions should continue to aid the top line in the future. However, escalating expenses remain a concern for the company.
Revenue Mix, Acquisitions Aid Moody's (MCO) Amid High Costs
Per the Zacks analyst, Moody's diverse revenue mix, low-risk product portfolio and acquisition initiatives will aid growth. Yet, inorganic growth efforts are likely to keep expenses elevated.
New Drugs Boost Bayer (BAYRY), Crop Science Faces Challenges
Per the Zacks analyst, new drugs like Nubeqa and Kerendia boost Bayer. However, Crop Science division is facing pricing challenges for glyphosate-based products which will impact performance.
Edwards (EW) Rides on Solid TMTT Sales and Global Prospects
Edwards' strong TMTT sales globally is a major positive. Per the Zacks analyst, differentiated therapies, positive pivotal trial results and favorable real-world clinical outcomes are the key drivers.
Investments Aid Sempra (SRE), Severe Weather Impact Woes
Per the Zacks analyst, systematic investments boost Sempra's infrastructure. Yet, its operations are subject to severe weather which can materially increase costs, and impact its earnings.
CrowdStrike (CRWD) Rides on Product Strengt, Acquisitions
Per the Zacks analyst, CrowdStrike is gaining from solid contributions of its growth-oriented products, primarily Falcon platform. Also, strategic buyouts like Reposify and SecureCircle are positive.
New Upgrades
Salvage Auction Volumes & Market Leadership Aid Copart (CPRT)
Per the Zacks analyst, Copart is poised to benefit from elevated salvage auction volumes & its solid leadership position in the automotive auction market.
Strong Booking Trends Aid Royal Caribbean's (RCL) Performance
Per the Zacks analyst Royal Caribbean in benefiting from solid close-in bookings at higher prices. Also, digital innovations and strong demand for Caribbean itineraries adds to growth.
Advanced Technology, Acquisitions Aid Consolidated Water (CWCO)
Per the Zacks analyst, Consolidated Water uses most advanced technology for desalination, allowing it to benefit by meeting increasing demand, while acquisition of PERC is expected to drive earnings.
New Downgrades
Weak Demand & Low Pricing Hurt International Paper (IP)
The Zacks analyst is concerned that weak packaging demand due to lower consumer spending for goods as well as lower pricing will continue to impact International Paper's results.
Foot Locker (FL) Witnesses Inflationary & Other Headwinds
Per the Zacks analyst, Foot Locker is witnessing several headwinds including slowdown in consumer spending and inflationary woes. Also, higher markdowns and occupancy deleverage are hurting margins.
Elevated Expenses, Tough Backdrop Hurt State Street (STT)
Per the Zacks analyst, elevated expenses due to continuous investments in franchise and inflationary pressure will hurt State Street's bottom line. A tough operating backdrop is a major headwind.
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AT&T Inc. (T) : Free Stock Analysis Report
Moody's Corporation (MCO) : Free Stock Analysis Report
Oracle Corporation (ORCL) : Free Stock Analysis Report
HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report
Linde PLC (LIN) : Free Stock Analysis Report
S&P Global Inc. (SPGI) : Free Stock Analysis Report
