Today's Must Read
Enterprise (EPD) Banks on $9B Midstream Project, Debts High
Cost Control Aids UBS Group AG (UBS), Negative Rates A Woe
Tuesday, December 31, 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), Enterprise Products Partners L.P. (EPD) and UBS Group AG (UBS). 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 over the past one-year period (+35.4% vs. +21.8%).The company’s solid first-quarter fiscal 2020 results, wherein both top and bottom lines not only surpassed the Zacks Consensus Estimate but also improved year over year, is driving the stock momentum.
Strong organic sales growth, backed by higher shipment volume and favorable price/mix, boosted the top line. Again, ongoing cost-saving and productivity efforts cushioned margins and in turn the bottom line.
However, the company’s significant international presence exposes it to foreign currency risks, which have been weighing on the company’s performance.
Shares of Enterprise Products have gained +13.3% in the past one-year period against the Zacks Oil and Gas - Production Pipeline - MLB industry’s rise of +4.2%. Enterprise Products boasts an extensive network of pipeline that spreads across nearly 50,000 miles. Importantly, this network is connected to every major U.S. shale play, and provides services to producers and users of various commodities.
Notably, the partnership is well positioned to generate additional cash flow from $9.1 billion worth of growth capital projects – including the Midland & ECHO storage expansions – that are currently under construction. However, the partnership’s levered balance sheet can restrict its financial flexibility.
UBS Group’s shares have outperformed the Zacks Banks - Foreign industry over the past three-month period (+13.0% vs. +7.0%). The company continues to execute restructuring initiatives to free resources and invest in profitable areas to service clients with greater dexterity, improving quality and speed to market. Further, the company's cost-saving plans will aid the bottom-line expansion. Moreover, UBS Group AG remains focused on building capital levels and undertaking global-expansion initiatives.
However, appreciation of the Swiss franc against other currencies is a headwind. Further, unsustainable capital-deployment activities keep us apprehensive.
Other noteworthy reports we are featuring today include Nokia Corporation (NOK), Cintas Corporation (CTAS) and OGE Energy Corp. (OGE).
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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>>>