Today's Must Read
BP Plc (BP) Banks on Upstream Projects Amid Oil Spill Woes
Alibaba (BABA) Benefits from Strategic Investment in Intime
Monday, October 9, 2017
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 Coca-Cola (KO), BP (BP) and Alibaba Group Holdings (BABA). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Shares of Coca-Cola have underperformed the Zacks Soft Drinks Beverages industry since the beginning of the year, (+9.7% vs. +11%). Coca-Cola’s sales are affected by declining demand in certain emerging and developing markets and a shift in consumer preference. Also, severe macroeconomic challenges in certain international markets have impacted results for the cola giant, which generates about half of its sales abroad.
However, Coca-Cola’s increased marketing investments are driving volume growth in stable markets like North America. Moreover, the company is on track to achieve total annualized productivity saving target of approximately $3.8 billion by 2019 from the initiatives implemented under this program since its beginning. Also, Coca-Cola’s new revenue platforms should drive growth over the long term.
BP has gained +2.3% year to date, outperforming the Zacks Oil & Gas-International Integrated industry’s +0.2% gain. BP recently commenced natural gas production at the Khazzan field in Oman. The company is one of the largest integrated energy firms in the world, with a strong and diversified portfolio of development projects.
The project, expected to have an inventory of 300 drilling wells, is the largest start-up by BP in 2017. Also, it is the sixth project start-up among the seven new key developments of the company this year. All the projects are likely to take the energy giant closer to its target of adding 800,000 barrels of oil equivalent per day by 2020.
However, the oil spill incident of 2010 in the BP-operated Macondo Prospect continues to affect the company. Although BP has cleared the substantial litigation expenses related to the spill, it had to divest some of its best operating properties.
(You can read the full research report on BP here >>>).
Buy-rated Alibaba's shares have outperformed the Zacks Electronic Commerce industry, on a year-to-date basis, gaining +104.1% vs. +51.9%. Alibaba Group is a Chinese e-Commerce giant which caters mainly to its native market. The company’s fiscal first-quarter results exceeded the Zacks Consensus Estimate on revenues and earnings.
Alibaba’s strong core e-commerce business, its continued efforts to develop new products, international growth opportunities, strong financial position and and growing cloud computing services are positives. However, macro headwinds, continued investments and increasing competition from Tencent Holdings and Baidu remain the overhangs.
Other noteworthy reports we are featuring today include EOG Resources (EOG), U.S. Bancorp (USB) and Vale S.A. (VALE).
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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>>>