Friday, December 29, 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 Coca-Cola Co. (KO), Brasileiro S.A. - Petrobras (PBR) and Airbnb, Inc. (ABNB). 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 Coca-Cola have underperformed the Zacks Beverages - Soft drinks industry over the past year (-4.8% vs. +7.2%). The company continues witness inflationary cost pressures related to higher commodity and material costs, as well as higher marketing investments.

Nevertheless, Coca-Cola continues to witness positive business trends as reflected by its robust surprise history. KO’s sales and earnings beat estimates for the third consecutive quarter in third-quarter 2023. Earnings and sales also improved year over year.

Strong revenue growth across most of its operating segments, aided by improved price/mix and increased concentrate sales boosted its results. It is poised to gain from innovations and accelerating digital investments. It provided upbeat guidance for 2023.

(You can read the full research report on Coca-Cola here >>>)

Shares of Petrobras have gained +59.3% over the past year against the Zacks Oil and Gas - Integrated - Emerging Markets industry’s gain of +62.3%. Brazil's state-run oil and natural gas giant is riding high on the back of its impressive portfolio, particularly in the country’s pre-salt reservoirs.

It is the operator in most of its country's exploration areas and holds interests ranging from 20% to 100% in them. This puts Petrobras in an enviable position to maintain an impressive production growth profile for years to come.

Meanwhile, the company’s ambitious low-carbon investment target bodes well for long-term value generation. Having said all of this, the fact that Rio de Janeiro-based Petrobras is still reeling under huge debt burden cannot be overlooked.

The firm also has to deal with years of mismanagement and corruption, while investors remain wary of the risk of political interference. As such, Petrobras warrants a cautious stance at the moment.

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

Airbnb’s shares have outperformed the Zacks Internet - Content industry over the past year (+60.2% vs. +40.1%). The company is benefiting from continuous improvements in Nights and Experiences Booked, enabling it to witness a positive trend in its Gross Booking Value. Growing gross nights booked, owing to solid momentum across high-density urban areas and first-time bookers, is a tailwind.

Further, increasing guest demand and continuing recovery in cross-border travel are major positives. Strong momentum in active listings, owing to supply growth across all regions, particularly in Asia Pacific and Latin America, is benefiting the top line.

Moreover, growing awareness around hosting and new features introduced for hosts is a plus. However, greater volatility in travel demand due to macroeconomic uncertainties, rising competition and impacts of geopolitical conflicts, remain concerns.

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

Other noteworthy reports we are featuring today include Cadence Design Systems, Inc. (CDNS), Intercontinental Exchange, Inc. (ICE) and Autodesk, Inc. (ADSK).

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>>>