Today's Must Read
Opportunistic Buyouts Aid Morgan Stanley (MS) Amid Low Rates
Shell (RDS.A) to Benefit from LNG Demand Growth
Friday, August 13, 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 Visa Inc. (V), Morgan Stanley (MS), and Royal Dutch Shell plc (RDS.A). 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 Visa have outperformed the Zacks Financial Transaction Services industry over the past year (+18.8% vs. -1.9%). The Zacks analyst believes that Visa continues to benefit from Visa Europe acquisition, increasing business volumes, investment in digital technology and a solid balance sheet.
The coronavirus vaccine development and the gradual revival of consumer confidence is likely to drive spending, expanding business volumes in turn. Backed by its strong cash position, the company remains committed to boost its shareholder value. High operating expenses, however, are stressing the operating margins.
Morgan Stanley shares have gained +39.8% over the last six months against the Zacks Investment Banking industry’s gain of +24.6%. The Zacks analyst believes that the company’s focus on less capital-market dependent operations and opportunistic buyouts will keep aiding financials.
Its second-quarter 2021 results reflect the impacts of solid advisory business, rise in interest income and dismal trading performance. The company’s robust capital deployments reflect solid liquidity position. Elevated expenses due to its investments in franchise, however, are likely to hurt the bottom line.
Shares of Royal Dutch Shell have gained +1.9% in the past three months against the Zacks International Integrated Oil industry’s loss of -0.3%. The Zacks analyst believes that with LNG demand likely to rise significantly in the near-to-medium term, Shell’s position as a major supplier of LNG is likely to improve the company’s cash flow.
Its long-term cash flow also stands to benefit from attractive growth opportunities ahead. Shell is making solid progress toward the transition to a renewable energy-focused future and pledged to attain net-zero emissions by 2050. The firm’s high investment grade rating, meanwhile, translates into low borrowing rates.
Other noteworthy reports we are featuring today include Applied Materials, Inc. (AMAT), Fidelity National Information Services, Inc. (FIS) and Micron Technology, Inc. (MU).
Director of Research
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>>>