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Research Daily

Thursday, December 31, 2020

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, inc. (CRM), HSBC Holdings plc (HSBC) and Honda Motor Co., Ltd. (HMC). 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 salesforce have increased +36.7% over the past year against the Zacks Computer - Software industry’s gain of +36.8%. The Zacks analyst believes that the company is benefiting from a robust demand environment as customers are undergoing a major digital transformation. The rapid adoption of its cloud-based solutions is driving demand for its products. Salesforce’s sustained focus on introducing more aligned products as per customer needs is driving its top-line. Continued deal wins in the international market is another growth driver.

However, stiff competition is a concern. Besides, unfavorable currency fluctuations along with increasing investments in international expansions and data centers are an overhang on near-term profitability.

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

HSBC shares have underperformed the Zacks Banks - Foreign industry over the past year (-33.7% vs. -14.9%). The company’s initiatives to improve market share in the U.K. and China are likely to support financials over the long term. However, the Zacks analyst believes that these efforts might lead to a rise in costs in the near term, thus, hurting the bottom line to some extent. Moreover, global economic slowdown, low interest rate environment across the globe and weak loan demand will likely hamper revenue growth.

Nevertheless, the company’s strong capital position, initiatives to strengthen digital capabilities, extensive network across the world and efforts to improve operating efficiency through business restructuring are expected to support profitability in the quarters ahead.

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

Shares of Honda Motor have lost -0.5% over the past year against the Zacks Automotive – Foreign industry’s gain of +18.7%. The Zacks analyst believes that fiscal 2021 sales are still expected to decline year over year, thanks to the coronavirus pandemic.  Further, high capex to develop advanced technologies may limit its near-term cash flows. Frequent recalls and elevated leverage of the firm also play spoilsports.

However, focus on the development of electric and self-driving cars bodes well for Honda, given the changing dynamics in the automobile industry. The firm’s strategic collaborations with companies like General Motors, GAC Group and Hitachi, among others, are expected to expand the business and bolster prospects.

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

Other noteworthy reports we are featuring today include Kinder Morgan, Inc. (KMI), Cintas Corporation (CTAS) and MarketAxess Holdings Inc. (MKTX).

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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>>>

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