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Research Daily

Thursday, November 17 2016

Today's Research Daily features new research reports on 16 major stocks, including Home Depot (HD), TOTAL (TOT) and Pepsi (PEP).

Home Depot’s shares have struggled this year. The company reported better-than-expected top and bottom-line results for third-quarter fiscal 2016. The analyst likes Home Depot’s focus on developing merchandising tools, which, along with investment in building its interconnected capabilities is expected to boost its top line, and enhance market share. The company is on track to achieve its long-term dividend payout, share repurchase and return on investment targets. However, intense competition and a soft economic recovery may prove deterrents, pushing back home improvement projects. (You can read the full research report on Home Depot here.)

TOTAL’s shares have shown significant weakness recently. The company reported mixed results for the third quarter of 2016. However, the analyst likes the manner in which TOTAL has successfully lowered operating expenses as per management’s plans. Going forward, the company will continue to benefit from its upstream startups and cost management initiatives. Strategic acquisitions and asset divestures will strengthen its portfolio. TOTAL’s initiatives to increase clean energy assets through acquisitions will diversify its operations. Meanwhile, fluctuating commodity prices, operations in some politically troubled regions and increasing competition could impact the company’s profitability. (You can read the full research report on TOTAL here.)

Buy rated Pepsi shares have performed poorly this year. But the analyst emphasizes that Pepsi has been doing well on the back of significant innovation, continued momentum in Frito-Lay business, revenue management strategies, improved productivity and better market execution. Moreover, Pepsi has been seeing higher volumes and profits in the North American segments due to an improving economy, better industry pricing dynamics and a consistency in positive innovation. Pepsi’ new product lineup, aggressive marketing efforts, productivity improvement and cost-saving initiatives should drive profits. (You can read the full research report on Pepsi here.)

Other noteworthy reports we are featuring today include Merck (MRK), Target (TGT) and Electronic Arts (EA).

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Sheraz Mian

Director of Research

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