Tuesday, September 26, 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 Procter & Gamble Company (PG), The Home Depot, Inc. (HD) and Danaher Corporation (DHR). 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 >>>

Procter & Gamble shares have outperformed the Zacks Soap and Cleaning Materials industry over the past six months (+4.2% vs. +2.0%). The company continued its robust top and bottom-line surprise trend for the fourth consecutive quarter in the fourth quarter of fiscal 2023. Also, sales and earnings grew year over year.

Procter & Gamble’s organic sales grew, driven by robust pricing and a favorable mix, along with strength across segments. It has been focused on productivity and cost-saving plans to boost margins. Consequently, management has provided an optimistic view for fiscal 2024.

However, the company has been witnessing supply-chain issues, higher SG&A costs, higher transportation costs, geopolitical challenges, currency headwinds and rising inflation. Procter & Gamble’s significant international presence exposes it to foreign currency risks, which have been weighing on the company’s performance.

(You can read the full research report on Procter & Gamble here >>>)

Shares of Home Depot have gained +16.7% over the past year against the Zacks Building Products - Retail industry’s gain of +20%. The company has been witnessing significant benefits from the execution of the “One Home Depot” investment plan, which focuses on expanding supply chain facilities, technology investments and enhancement to the digital experience.

The interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic for the past few quarters. The company remains on track with its strategic investments to build a Pro ecosystem.

However, Home Depot's top and bottom-lines declined year over year in second-quarter fiscal 2023. Results were impacted by a deflation in lumber prices and pressures in several big-ticket discretionary categories. HD retained its conservative view for fiscal 2023.

(You can read the full research report on Home Depot here >>>)

Shares of Danaher have gained +1.3% over the past six months against the Zacks Diversified Operations industry’s gain of +4.2%. Improving supply chains and strong price realization augur well for Danaher. The company’s Life Sciences segment is benefiting from healthy demand across the life science, research, academic and applied markets.

The Danaher Business System (DBS) initiatives are supporting the company’s margins. DHR’s commitment to return value to shareholders is encouraging. However, the company is plagued by weakness in the Biotechnology and Diagnostics segments due to a decrease in the sale of COVID-related products.

Given Danaher’s significant international exposure, foreign currency headwinds are affecting its top line. The escalating cost of sales due to raw material cost inflation poses a threat to the company’s bottom line.

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

Other noteworthy reports we are featuring today include Zoetis Inc. (ZTS), Duke Energy Corporation (DUK) and Itaú Unibanco Holding S.A. (ITUB).

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>>>