Friday, January 13, 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 Booking Holdings Inc. (BKNG), U.S. Bancorp (USB) and CME Group Inc. (CME). 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 Booking Holdings have declined -7.9% over the past year against the Zacks Internet - Commerce industry’s decline of -33.1%. The company is facing headwinds related to the coronavirus pandemic and macroeconomic uncertainties continue to remain overhangs. Further, intensifying competition in the online travel booking space remains a concern.

Nevertheless, Booking Holdings is benefiting from substantial improvement in its booking trends owing to increasing travel demand. A surge in repeat customers is creating growth in the company’s active customers. Further, the company is experiencing growth in rental car, airline ticket units and booked room nights, which is a positive.

Strong growth across the agency, merchant, and advertising and other businesses is contributing well. The Zacks analyst expects growth across these businesses to continue in the days ahead. Our estimates suggest agency, merchant, and advertising and other revenues will see year-over-year rises of 34.9%, 86.1% and 55.8%, respectively in 2022.

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

Shares of U.S. Bancorp have underperformed the Zacks Banks - Major Regional industry over the past year (-24.8% vs. -22.2%). The company is witnessing rising expenses which might weigh on its bottom line in the upcoming quarters. A concentrated loan portfolio and legal hassles are other key headwinds.

However, U.S. Bancorp has a decent earnings surprise history, with earnings beating estimates in three of the trailing four quarters. Third-quarter results reflect a rise in revenues, supported by higher interest rates and margins.

The bank has received all required regulatory approvals for the acquisition of MUFG Union Bank’s core regional banking franchise. A solid business model and diverse revenue streams are likely to aid its financials. The company’s strong loan and deposit balances are positives. Its decent liquidity position is likely to support capital-deployment plans.

(You can read the full research report on U.S. Bancorp here >>>)

CME Group’s shares have declined -20.9% over the past year against the Zacks Securities and Exchanges industry’s decline of -27.5%. The company is facing escalating expenses due to higher technology cost are likely to put pressure on the company's margin expansion. Diversified product portfolio is significantly exposed to volatile interest rate, firm government regulations and limited credit availability in unstable capital and credit market. Also, stiff competition poses financial risk for the company.

However, CME Group’s strong market position driven by varied derivative product lines bodes well. Efforts to expand and cross sell through strategic alliances, acquisitions, new product initiatives and a stable global presence bode well.

Product innovation and growing proportion of volume from customers outside the United States have been aiding results. The company intends to focus more on over-the-counter clearing services.

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

Other noteworthy reports we are featuring today include Consolidated Edison, Inc. (ED), PPG Industries, Inc. (PPG) and Diamondback Energy, Inc. (FANG).

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>>>