Top Analyst Reports For Alphabet, Wells Fargo & PetroChina
Zacks Investment Research | Mar 22, 2019 02:38AM ET
Friday, March 22, 2019
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 (NASDAQ:GOOGL), Wells Fargo (WFC), and PetroChina (PTR). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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Alphabet's shares have outperformed the Zacks Internet Services industry in the past year (+20.4% vs. -4.6%).The Zacks analyst thinks Alphabet is riding on its growing search initiatives. Its strong initiatives toward elimination of bad ads and introducing useful major search updates are acting as tailwinds. These are enhancing its search results.
Further, Google’s robust mobile search is also a major positive. Additionally, its strong focus toward bolstering presence in the cloud market on the back of expanding data centers and robust cloud offerings continues to aid top-line growth.
The company’s strong focus on innovation related to its AI techniques and Android OS along with growing presence in the home automation space are aiding business growth further. However, the company’s growing litigation issues might hurt its profitability. Also, it's increased spending on consumer gadgets, YouTube video app and cloud computing services remains a concern.
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Shares of Wells Fargo have underperformed the Zacks Major Regional Banks industry over the past three months (up +14.4% vs. +17.4%).Its earnings surprise history is decent, having beaten expectations in two of the trailing four quarters. The Zacks analyst likes the ongoing investments in the businesses to enhance compliance and risk management capability, build a better bank and strengthen core infrastructure.
The bank settled fake account scandal-related lawsuit filed by shareholders and ended investigations by about 50 states, which will enable it to focus on operations. However, Wells Fargo was slapped with several sanctions, including a cap on its assets by the Federal Reserve, following its involvement in several legal issues. Its reputation was harmed by such involvement and might take some time to recover. Falling mortgage banking income is another concern.
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PetroChina’s shares have gained +11.2% year to date, underperforming the Zacks International Integrated Oil industry, which has increased +13.6% over the same period. The Zacks analyst thinks that since higher oil prices will likely support the state-run giant's upstream unit in the near-to-medium term, the stock might regain favor.
The company's exploration & production segment has been benefiting from steady commodity price recovery and stricter cost control. Meanwhile, the downstream business -- consisting of the refining and chemicals’ activities – should be able to take advantage of optimized resource allocation, strict cost control and increased production of high-value products.
However, the company's weak oil production growth prospects are a major concern. Limited international operations and losses on gas imports give investors more reason to be cautious about the stock.
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Other noteworthy reports we are featuring today include Micron (MU), Tesla (NASDAQ:TSLA) and Allstate (ALL).
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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
Today's Must Read/h6
Featured Reports/h6
Per the Zacks analyst, strong growth in managed NAND products is driving revenue growth of Micron's Mobile Business Unit. However, adverse memory and storage pricing remain concerns
Per the Zacks analyst, growing Service business on the back of strategic buyouts and expansion have ed to significant growth. However, high debt remains a concern.
Per the Zacks analyst, Tesla gains from solid strides in vehicle production, deliveries and infrastructure. Also, its focus on adding energy storage capacity is boosting growth momentum.
The Zacks analyst is upbeat about Quest Diagnostics (NYSE:DGX) on the expanded long-term pact with UnitedHealthcare, to operate as the latter's preferred national laboratory. Unit price headwinds remain.
Per the Zacks analyst, Lamar's efforts to upgrade its portfolio will raise display occupancy and advertising rates. Buyouts will also position the company for long-term growth.
Per the Zacks analyst, asset under management inflows and inorganic growth strategy will support Invesco's revenues.
The Zacks analyst appreciates the company's efforts to modernize its fleet.
Per the Zacks analyst, strong growth in managed NAND products is driving revenue growth of Micron's Mobile Business Unit. However, adverse memory and storage pricing remain concerns
Per the Zacks analyst, growing Service business on the back of strategic buyouts and expansion have ed to significant growth. However, high debt remains a concern.
Per the Zacks analyst, Tesla gains from solid strides in vehicle production, deliveries and infrastructure. Also, its focus on adding energy storage capacity is boosting growth momentum.
The Zacks analyst is upbeat about Quest Diagnostics (NYSE:DGX) on the expanded long-term pact with UnitedHealthcare, to operate as the latter's preferred national laboratory. Unit price headwinds remain.
Per the Zacks analyst, Lamar's efforts to upgrade its portfolio will raise display occupancy and advertising rates. Buyouts will also position the company for long-term growth.
Per the Zacks analyst, asset under management inflows and inorganic growth strategy will support Invesco's revenues.
The Zacks analyst appreciates the company's efforts to modernize its fleet.
New Upgrades/h6
Per the Zacks analyst, growing top line on the back of strategic buyouts such as AdvancedMD, ACTIVE Network and Heartland Payments Systems poise it well for long-term growth.
Per the Zacks analyst, Twilio's strong core voice and messaging products are leading to a robust expansion of its existing clientele and first-time deals with the new ones, thereby aiding its topline.
Per the Zacks analyst, solid traction of Macquarie Infrastructure's Atlantic Aviation segment, led by rise in hangar rental income and ancillary services revenue bodes well for its growth momentum.
Per the Zacks analyst, growing top line on the back of strategic buyouts such as AdvancedMD, ACTIVE Network and Heartland Payments Systems poise it well for long-term growth.
Per the Zacks analyst, Twilio's strong core voice and messaging products are leading to a robust expansion of its existing clientele and first-time deals with the new ones, thereby aiding its topline.
Per the Zacks analyst, solid traction of Macquarie Infrastructure's Atlantic Aviation segment, led by rise in hangar rental income and ancillary services revenue bodes well for its growth momentum.
New Downgrades/h6
Per the Zacks analyst, Eastman Chemical faces headwinds from raw material cost inflation. Also, weak demand for its specialty products in China remains a concern.
Per the Zacks analyst, Conagra grapples with lower sales in the Foodservice unit. The unit's sales fell 8.5% year on year in the third quarter, mainly due to the divestiture of the Trenton facility.
The Zacks analyst believes the considerable long-term debt load of $2.3 billion limits SemGroup's growth prospects. Continuing volume weakness in the company's U.S. gas unit is also a concern.
Per the Zacks analyst, Eastman Chemical faces headwinds from raw material cost inflation. Also, weak demand for its specialty products in China remains a concern.
Per the Zacks analyst, Conagra grapples with lower sales in the Foodservice unit. The unit's sales fell 8.5% year on year in the third quarter, mainly due to the divestiture of the Trenton facility.
The Zacks analyst believes the considerable long-term debt load of $2.3 billion limits SemGroup's growth prospects. Continuing volume weakness in the company's U.S. gas unit is also a concern.
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