Wednesday, November 3, 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 Royal Dutch Shell (RDS.A), Charter Communications (CHTR), and Square (SQ). 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 Royal Dutch Shell have underperformed the Zacks Oil and Gas - Integrated - International industry over the year-to-date period (+29.2% vs. +40.8%). The Zacks analyst believes that the company is poised for capital appreciation based on a slew of tailwinds. Earlier this year, Shell announced the launch of a $2 billion stock buyback program, which reflects its steadily improving earnings and cash flows. The company’s position as a key supplier of liquefied natural gas should also benefit its long-term cash flow growth on the back of attractive growth opportunities.

Again, it is making solid progress toward the transition to a renewable energy-focused future and pledged to attain net-zero emissions by 2050. Meanwhile, the firm’s high investment grade rating translates into low borrowing rates. Consequently, Shell is viewed a preferred integrated energy major to own now.

(You can read the full research report on Royal Dutch Shell here >>>)

Shares of Charter Communications have underperformed the Zacks Cable Television industry over the past year (+7.4% vs. +17.0%). The Zacks analyst believes that Charter benefits from growth in Internet and mobile revenues as well as an expanding user base. The company continues to witness strong spike in Internet usage due to the coronavirus-induced work-from-home and online-learning wave. Charter’s expanding mobile-subscriber base is also a key catalyst. The company’s broadband service has gained traction among SMBs and enterprises.

However, Charter persistently suffers video-subscriber attrition, primarily due to cord-cutting and stiff competition from streamers like Netflix, Disney+ and Amazon prime video. Moreover, due to rising job cuts, cord cutting and subscription dues are expected to shoot up, which doesn’t bode well for Charter’s top line.

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

Shares of Square have gained +14.4% in the year-to-date period against the Zacks Internet - Software industry’s loss of -8.0%. The Zacks analyst believes that Square is gaining on strong Cash App engagement and its expanding customer base. Further, rising bitcoin revenues owing to robust Cash App are contributing well to the top-line. Also, strong adoption of Cash Card is a major positive. Additionally, the company’s strengthening momentum in online channels and growing card-not-present GPV are expected to remain tailwinds.

Moreover, robust online products, such as Square Online Store, Invoices, Virtual Terminal and eCommerce API are expected to accelerate the GPV growth in the near term. However, higher investments and increasing product development expenses, and COVID-19 induced uncertainties remain concerns.

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

Other noteworthy reports we are featuring today include Lululemon Athletica Inc. (LULU), Northrop Grumman Corporation (NOC) and Dow Inc. (DOW).

Sheraz Mian

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>>>