Today's Must Read
Procter & Gamble's (PG) Cost Saving Plans Impress, Sales Weak
Goldman (GS) Exhibits Cost Control; Regulatory Issues Linger
Wednesday, April 12 2017
Today's Research Daily features new research reports on 16 major stocks, including General Motors (GM), Procter & Gamble (PG) and Goldman Sachs (GS).
General Motors have been strong performers over the past year (the stock is up +14.2% vs. +9.9% for the Zacks Auto sector & -11.9% for Ford), though they have struggled lately. The Zacks analyst likes the company’s capital allocation strategy, investments in plants in the U.S. and emerging markets, product launches and focus on technology development.
Moreover, the company's focus on capital deployment is expected to boost shareholder returns. However, the automaker is under pressure due to lower U.S. vehicles sales in 2016, a recent settlement related to the 2014 ignition switch recall and a large fine by China for monopolistic pricing behavior. Quarterly estimates for the company are also going down lately. (You can read the full research report on General Motors here.)
Shares of Procter & Gamble outperformed the Zacks Consumer Staples sector in the past year (+8.9% vs. +2.2%) on the back of improved organic sales and improving margins as a result of productivity gains and cost-saving efforts. Also, P&G shares have outperformed the S&P 500 index in the year-to-date period (up +6.8% vs. +5.2%). P&G’s quarterly results exceeded expectations.
On the flip side, the Zacks analyst points to mature end markets and the negative impact of the strong U.S. dollar as some of the headwinds for the stock. Also, flat pricing/mix is reflective of increased competition and lack of transformational innovation. The company also lost global market share in three of its five reporting segments. (You can read the full research report on Procter & Gamble here.)
Goldman Sachs outperformed the Investment Brokers industry over the past six months (+34.5% vs. +24.2%), while its focus to capitalize on growth opportunities through strategic moves, including its new digital consumer lending platform, should continue to bolster its overall business. Also, the company is poised to benefit from its disciplined expense management and solid capital position. However, several issues including sluggish global economic growth and a stringent regulatory landscape remain near-to-medium-term headwinds. (You can read the full research report on Goldman Sachs here.)
Other noteworthy reports we are featuring today include Kimberly-Clark (KMB), General Dynamics (GD) and Morgan Stanley (MS).
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Note: Note: Sheraz Mian regularly provides earnings analysis on Zacks.com and appears frequently in the print and electronic media. His weekly earnings related articles include Earnings Trends and Earnings Preview.
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