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Research Daily

Tuesday, June 7, 2022

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 Citigroup Inc. (C), Prologis, Inc. (PLD), and Automatic Data Processing, Inc. (ADP). 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 >>>


Citigroup shares have declined -13.6% over the year-to-date basis against the Zacks Banks - Major Regional industry’s decline of -13.1%, reflecting the numerous investigations and lawsuits along with uncertainty around the new management team's turnaround plans.

However, the company is advancing with its strategy to exit the consumer banking business in 14 international markets, Citigroup completed the sale of its Australian consumer business to National Australia Bank Limited (“NAB”). It targets a return on average tangible common shareholder equity (RoTCE) of 11-12% for the next three to five years. Moreover, net interest income growth, decent liquidity and capital deployment plans are positives.

(You can read the full research report Citigroup here >>>)

Prologis shares have outperformed the Zacks REIT and Equity Trust - Other industry over the past year (+4.6% vs. -2.8%). The Zacks analyst believes that the company has the capacity to offer high-quality facilities in key markets and with its robust balance-sheet strength, it is well-poised to bank on the favorable trends in the industrial real estate industry. Along with the fast adoption of e-commerce, this asset category is poised to gain from a likely rise in inventory levels.

However, the rising supply of industrial real estate in several markets might fuel competition and curb pricing power. Also, the stabilization of e-commerce sales growth is a concern for rental rate growth.

(You can read the full research report Prologis here >>>)

ADP shares have outperformed the Zacks Outsourcing industry over the past year (+11.7% vs. +10.5%). The Zacks analyst believes that the company continues to enjoy a dominant position in the human capital management market through strategic buyouts like Celergo, WorkMarket, Global Cash Card and The Marcus Buckingham Company. It has a strong business model, high recurring revenues, good margins, robust client retention and low capital expenditure. Further, it continues to innovate, improve operations and invest in its ongoing transformation efforts.

However, ADP faces significant competition in each of its product lines. Failure to remain technologically updated might reduce the demand for its solutions and services. Rising expenses due to investment in transformation efforts remains a concern. High debt remains a concern.

(You can read the full research report ADP here >>>)

Other noteworthy reports we are featuring today include Occidental Petroleum Corporation (OXY), Keurig Dr Pepper Inc. (KDP), and CrowdStrike Holdings, Inc. (CRWD).

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>>>

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