Today's Must Read
Streamlining Efforts, Expense Savings Support Citigroup (C)
Shell (RDS.A) to Benefit from LNG Demand Growth
Wednesday, April 7, 2021
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 salesforce.com (CRM), Citigroup (C) and Royal Dutch Shell (RDS.A). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Shares of salesforce have underperformed the Zacks Computer Software industry over the past year (+46.7% vs. +49.6%). The Zacks analyst believes that salesforce 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. The company’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.
Citigroup’s shares have gained +61.4% over the last six months against the Zacks Major Regional Banks industry’s gain of +51.4%. The Zacks analyst believes that Citigroup’s streamlining efforts, along with strategic investments in core business, bode well.
Also, net interest revenues will likely be supported by loan growth and mix, despite the low interest-rate environment. Further, a manageable debt level makes Citigroup less likely to default interest and debt repayment obligations in case of any economic downturn.
However, pending litigation issues might keep legal expenses elevated for the company. Additionally, a subdued consumer banking business might dent Citigroup's fee income base to some extent.
Shares of Royal Dutch Shell have gained +0.2% in the past three months against the Zacks International Integrated Oil industry’s gain of +8.8%. The Zacks analyst believes that the company is poised for capital appreciation based on a slew of tailwinds.
Shell’s trading business has been instrumental in helping the supermajor partly cushion the impact of the coronavirus-induced oil price slump. Further, the company’s position as a key supplier of liquefied natural gas should benefit its long-term cash flow growth on the back of attractive growth opportunities.
It is also making solid progress toward the transition to a renewable energy-focused future and pledged to halve carbon emissions over the next five decades. Meanwhile, the firm’s high investment grade rating translates into low borrowing rates.
Other noteworthy reports we are featuring today include NIKE (NKE), NextEra Energy (NEE) and The Charles Schwab (SCHW).
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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>>>