Today's Must Read
High Speed Internet Subscriber Gain Benefits Comcast (CMCSA)
S&P Global (SPGI) Continues to Benefit From Acquisitions
Friday, March 13, 2020
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Toyota (TM), Comcast (CMCSA) and S&P Global (SPGI). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Toyota’s shares have outperformed the Zacks Foreign Automotive industry over the past six months (-17.5% vs. -21.2%). The Zacks analyst believes that expanding portfolio of product lines is driving the firm’s prospects.
Toyota’s earnings estimates for fiscal 2020 and 2021 have moved north of late. In order to capitalize on the accelerated global shift to electric cars, the auto giant of Japan is focusing on developing electric and autonomous vehicles. This will bolster the company’s product competitiveness. Its healthy balance sheet, improving cash flows and investor-friendly moves are other positives.
However, anticipating a slowdown in India, China, Indonesia and Thailand, the company narrowed its annual vehicle sales target for fiscal 2020. High research and development expenses on advanced technologies for the development of EVs and driverless cars are also likely to dent near-term margins. As such, investors are recommended to wait for a better entry point.
Shares of Comcast have lost 12.4% over the past year against the Zacks Cable Television industry’s fall of 8.3%. The Zacks analyst believes that Comcast is benefiting from solid growth in high-speed Internet customers across a number of residential and business services.
The company’s strategy of providing high-speed Internet at an affordable cost plays a pivotal role in improving customer experience. Growing popularity of Xfinity products is also a major catalyst. Moreover, expansion in the wireless user base as well as in the security and automation services customer base is a key driver.
Additionally, Sky’s content strength is expected to drive the subscriber base in Europe. Further, increasing digital video sales hold promise. However, Comcast continues to lose video subscribers due to cord cutting and suffers a high debt level.
S&P Global’s shares have lost 18.7% over the past three months against the Zacks Business Information Services industry’s fall of 20.5%. The Zacks analyst believes that the company remains well poised to gain from growing demand for business information services.
Buyouts have helped it innovate, increase differentiated content and develop new products. Effective management execution has helped it generate solid cash flow which is utilized for growth initiatives. Dividend payments and share buybacks boost investors' confidence and positively impact earnings per share.
On the flip side, S&P Global remains vulnerable to proceedings, investigations and inquiries with respect to the ratings provided, leading to legal charges, damages or fines. Lower bank loan ratings activity has been weighing on the company's revenues.
Other noteworthy reports we are featuring today include Northrop Grumman (NOC), Humana (HUM) and Interactive Brokers Group (IBKR).
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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>>>