Top Analyst Reports For Coca-Cola, BP & Alibaba
Zacks Investment Research | Oct 09, 2017 03:19AM ET
Monday, October 9, 2017
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 Coca-Cola (KO), BP (LON:BP) (BP) and Alibaba (NYSE:BABA) Group Holdings (BABA). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see
Shares of Coca-Cola have underperformed the Zacks Soft Drinks Beverages industry since the beginning of the year, (+9.7% vs. +11%). Coca-Cola’s sales are affected by declining demand in certain emerging and developing markets and a shift in consumer preference. Also, severe macroeconomic challenges in certain international markets have impacted results for the cola giant, which generates about half of its sales abroad.
However, Coca-Cola’s increased marketing investments are driving volume growth in stable markets like North America. Moreover, the company is on track to achieve total annualized productivity saving target of approximately $3.8 billion by 2019 from the initiatives implemented under this program since its beginning. Also, Coca-Cola’s new revenue platforms should drive growth over the long term.
(You can ).
BP has gained +2.3% year to date, outperforming the Zacks Oil & Gas-International Integrated industry’s +0.2% gain. BP recently commenced natural gas production at the Khazzan field in Oman. The company is one of the largest integrated energy firms in the world, with a strong and diversified portfolio of development projects.
The project, expected to have an inventory of 300 drilling wells, is the largest start-up by BP in 2017. Also, it is the sixth project start-up among the seven new key developments of the company this year. All the projects are likely to take the energy giant closer to its target of adding 800,000 barrels of oil equivalent per day by 2020.
However, the oil spill incident of 2010 in the BP-operated Macondo Prospect continues to affect the company. Although BP has cleared the substantial litigation expenses related to the spill, it had to divest some of its best operating properties.
(You can ).
Buy-rated Alibaba's shares have outperformed the Zacks Electronic Commerce industry, on a year-to-date basis, gaining +104.1% vs. +51.9%. Alibaba Group is a Chinese e-Commerce giant which caters mainly to its native market. The company’s fiscal first-quarter results exceeded the Zacks Consensus Estimate on revenues and earnings.
Get The News You Want
Alibaba’s strong core e-commerce business, its continued efforts to develop new products, international growth opportunities, strong financial position and and growing cloud computing services are positives. However, macro headwinds, continued investments and increasing competition from Tencent Holdings and Baidu remain the overhangs.
(You can ).
Other noteworthy reports we are featuring today include EOG Resources (NYSE:EOG) (EOG), U.S. Bancorp (USB) and Vale S.A. (VALE).
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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 Zacks analyst, U.S. Bancorp's loans balance continues to grow due to increasing market share and client relationships.
Per the Zacks analyst, United Therapeutics holds a strong position in the PAH market with four drugs, however, sales growth has slowed lately as competition in the PAH market is gradually rising.
Per the Zacks analyst, Embraer leads the 70- to 130-seat commercial jet market with a series of healthy contracts. However, need to pay higher penalties in future might bring further losses.
Per the Zacks analyst, DISH Network (NASDAQ:DISH) should benefit from its extensive portfolio of wireless spectrum and Internet TV service - Sling TV, while it continues to lose subscribers due to cord-cutting.
The Zacks Analyst thinks that further decline in iron ore prices might hurt Vale's near-term results.
The Zacks analyst is bullish on Illumina riding high on product launches including the latest release of VeriSeq NIPT in Europe and strong uptake of NovaSeq.
Huge inventory of premium drilling wells in the Bakken and Eagle Ford shale plays will contribute to EOG Resources' oil production, per the Zacks analyst.
Per Zacks analyst, U.S. Bancorp's loans balance continues to grow due to increasing market share and client relationships.
Per the Zacks analyst, United Therapeutics holds a strong position in the PAH market with four drugs, however, sales growth has slowed lately as competition in the PAH market is gradually rising.
Per the Zacks analyst, Embraer leads the 70- to 130-seat commercial jet market with a series of healthy contracts. However, need to pay higher penalties in future might bring further losses.
Per the Zacks analyst, DISH Network (NASDAQ:DISH) should benefit from its extensive portfolio of wireless spectrum and Internet TV service - Sling TV, while it continues to lose subscribers due to cord-cutting.
The Zacks Analyst thinks that further decline in iron ore prices might hurt Vale's near-term results.
The Zacks analyst is bullish on Illumina riding high on product launches including the latest release of VeriSeq NIPT in Europe and strong uptake of NovaSeq.
Huge inventory of premium drilling wells in the Bakken and Eagle Ford shale plays will contribute to EOG Resources' oil production, per the Zacks analyst.
New Upgrades/h6
Per the Zacks analyst, Iron Mountain's recent announcement to acquire Credit Suisse data centers in London and Singapore will help it gain ground in the international markets.
The Zacks analyst views favorably Cigna's strong government business which includes Medicare Advantage and Medicaid businesses. Its strong balance sheet aids investments for growth.
Acquisition related synergies have been aiding HanesBrands growth lately, per Zacks analyst. The company is also savings costs through Project Booster to improve efficiency and drive profits.
Per the Zacks analyst, Iron Mountain's recent announcement to acquire Credit Suisse data centers in London and Singapore will help it gain ground in the international markets.
The Zacks analyst views favorably Cigna's strong government business which includes Medicare Advantage and Medicaid businesses. Its strong balance sheet aids investments for growth.
Acquisition related synergies have been aiding HanesBrands growth lately, per Zacks analyst. The company is also savings costs through Project Booster to improve efficiency and drive profits.
New Downgrades/h6
Although the sale of certified authority (CA) business will avoid conflicts with Alphabet (NASDAQ:GOOGL), the high margin of the sold business may hurt Symantec's near-term profitability, per the Zacks analyst.
Per the Zacks analyst, Goldcorp's weakening production (as reflected by its FY17 outlook) and a debt-laden balance sheet remain concerns. It is also exposed to a volatile gold pricing environment.
Per the Zacks Analyst, increased competition from alternative modes of entertainment has been hurting demand and, in turn, Hasbro's revenues.
Although the sale of certified authority (CA) business will avoid conflicts with Alphabet (NASDAQ:GOOGL), the high margin of the sold business may hurt Symantec's near-term profitability, per the Zacks analyst.
Per the Zacks analyst, Goldcorp's weakening production (as reflected by its FY17 outlook) and a debt-laden balance sheet remain concerns. It is also exposed to a volatile gold pricing environment.
Per the Zacks Analyst, increased competition from alternative modes of entertainment has been hurting demand and, in turn, Hasbro's revenues.
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.