Today's Must Read
P&G's (PG) Productivity & Cost Savings Plan to Drive Profits
Investment & Innovation Show Coca-Cola's (KO) Core Strength
Monday, September 30, 2019
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), The Procter & Gamble Company (PG) and The Coca-Cola Company (KO). 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 >>>
Visa’s shares have outperformed the Zacks Financial Transaction Services industry over the past one-year period (+15.4% vs. +12.5%). The Zacks analyst believes that numerous acquisitions and alliances plus technology upgrades and effective marketing have paved the way for long-term growth and consistent increase in revenues.
Notably, the acquisition of Visa Europe is a long-term growth strategy for the company. Its international business has been expanding and adds diversification benefits. Its strong capital position is another positive.
However, high client incentives and expenses weigh on its operating margin. Also, adverse foreign exchange volatility imparts instability to the company’s earnings.
Shares of Procter & Gamble have gained 48.9% in the past one-year, outperforming the Zacks Soap and Cleaning Materials industry’s rise of 27.5%. The Zacks analyst believes that the company’s earnings is benefitting from its ongoing productivity efforts, while strong organic sales growth backed by higher shipment volumes and favorable price/mix boosted the top line.
The company also provided upbeat guidance for fiscal 2020. It is gaining from focus on product improvement, packaging and marketing initiatives, and productivity and cost-savings plan.
However, adverse foreign currency rates are hurting the company’s top and bottom lines. Moreover, global economic challenges and stiff competition poses concern.
Coca-Cola’s shares have gained 17.4% over the past one-year period, outperforming the Zacks Beverages - Soft Drinks industry’s rise of 11.4% over the same period. The Zacks analyst believes that Coca-Cola has done exceedingly well in the past year, owing to the execution of strategies to evolve as a consumer-centric total beverage company.
Ongoing productivity efforts and disciplined growth strategies as well as robust performance across segments are aiding its top and bottom lines. Its global re-franchising initiatives are also expected to boost margins.
However, it expects adverse currency rates to significantly mar comparable revenues and operating income in the third quarter and 2019.
Other noteworthy reports we are featuring today include Wells Fargo & Company (WFC), BP p.l.c. (BP) and NVIDIA Corporation (NVDA).
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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>>>