Today's Must Read
Data-Centric Business Growth Aids Intel's (INTC) Prospects
Adobe (ADBE) Counts on Creative Strength; Expenses A Concern
Monday, October 28, 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 The Procter & Gamble Company (PG), Intel Corp. (INTC) and Adobe Inc. (ADBE). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Procter & Gamble’s shares have outperformed the Zacks Soap and Cleaning Materials industry on a year to date basis (+34.8% vs. +22.1%). The Zacks analyst believes that they company’s earnings are currently 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 is also 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. The company expects currency headwinds to hurt its top line in fiscal 2020. Moreover, global economic challenges and stiff competition poses concern.
Intel’s shares have outperformed the S&P 500 index so far this year (+19.9% vs. +19.4%). The Zacks analyst believes that the PC-centric business is anticipated to be flat to decline marginally year over year, NAND pricing growth and recovery in cloud are anticipated to drive the Data-centric business in the fourth quarter.
Intel is benefiting from rising demand for its high-performance products in both data center and client domains. Moreover, launch of new 10nm technology-based AI chip, Springhill, holds promise.
However, weakness in demand from China, expenses pertaining to 10nm ramp and constrained supply are concerns. Moreover, intensifying competition from AMD is a headwind.
Adobe’s shares have outperformed the Zacks Computer - Software industry over the past two-year period (+53.2% vs. +48.6%). The Zacks analyst believes that Adobe’s increasing demand for its creative products continues to drive its top-line growth.
Also, the company’s Adobe Document Cloud and Adobe Experience Cloud products, along with growing subscription for cloud application are positives. It has been making great efforts toward establishing its presence in cloud-related software areas such as documents and marketing.
However, lower end-market demand and exposure to Europe remain overhangs. High acquisition expenses do not bode well for its margin expansion.
Other noteworthy reports we are featuring today include Walmart Inc. (WMT), Texas Instruments Inc. (TXN) and Tesla, Inc. (TSLA).
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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>>>