Wednesday, March 31, 2021
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 Comcast Corporation (CMCSA), Netflix, Inc. (NFLX) and PepsiCo, Inc. (PEP). 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 >>>
Shares of Comcast have increased +4.9% in the year-to-date period against the Zacks Cable Television industry’s gain of +1.6%. The Zacks analyst believes that Comcast is benefiting from solid high-speed Internet customer wins. Its strategy to provide high-speed Internet at an affordable price plays a pivotal role in providing connectivity and improving customer experience. Moreover, coronavirus-led increased media consumption, and work-from-home and online-learning waves bode well for Comcast’s Internet business.
Its streaming service Peacock has gained significant tract within a short span of time and is a key catalyst in driving broadband sales. However, Comcast persistently suffers from video-subscriber attrition due to cord cutting. Moreover, a leveraged balance sheet is a concern.
(You can read the full research report on Comcast here >>>)
Netflix shares have underperformed the Zacks Broadcast Radio and Television industry over the past year (+41.0% vs. +72.7%). The Zacks analyst believes that Netflix’s leveraged balance sheet and higher streaming obligation is a concern. Still, Netflix is dominating the streaming space, courtesy of its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content. Higher number of originals are expected to aid user-base growth in 2021 despite rising competition from Apple TV+, Amazon prime video, HBO Max, Disney+, Peacock, Discovery+ and TikTok.
User-friendly features like Downloads For You and more efficient Parental Controls are key positives. The launch of low-priced mobile plans is also expected to expand Netflix’s subscriber base in Asia Pacific.
(You can read the full research report on Netflix here >>>)
PepsiCo shares have underperformed the Zacks Beverages – Soft drinks industry in the past three months (-3.9% vs. -1.6%). The Zacks analyst believes that shares of PepsiCo lagged the industry in the past three months on a soft margins trend due to incremental pandemic-related costs. However, the company’s top and bottom-line did surpass estimates for the eighth straight quarter in the fourth quarter, and improved year over year.
Despite the pandemic related challenges, the robust fourth quarter results were driven by resilience and strength in the global snacks and foods business, along with accelerated growth in the beverage category. The snacks/food business benefited from increased at-home consumption trends. The company also gained from its strong portfolio of brands, a responsive supply chain and flexible go-to-market systems, which helped maintain continued supplies.
(You can read the full research report on PepsiCo here >>>)
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>
Director of Research
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>>>
Today’s Must Read
High Speed Internet Subscriber Gain Benefits Comcast (CMCSA)
PepsiCo (PEP) Snacking Business Remains Robust Amid Pandemic
Investments Boost ConEd (ED), Poor Financial Ratios Ail
Per the Zacks analyst, solid investments aid Consolidated Edison’s (ConEd) infrastructural development. Yet its poor financial ratios might hurt the stock’s ability to duly meet its debt obligations.
Helmerich & Payne (HP) Buoyed by Strong FlexRig Demand
The Zacks analyst believes the technologically advanced FlexRig gives Helmerich an edge, boosting margins, but is worried over its struggling international division.
Low Costs Aid Southwest (LUV) Amid Weak Passenger Revenues
Per the Zacks analyst, low costs, thanks to Southwest’s cost-control measures, are partly offsetting the passenger revenue declines caused by coronavirus-led suppressed air-travel demand.
Restructuring Aids General Electric (GE), Power Segment Ails
Per the Zacks analyst, General Electric’s business portfolio-restructuring program continues to lend momentum to it. Operational challenges within its Power and Aviation segments remain concerns.
Strong Global Business Aids NEOGEN (NEOG) Amid Rising Costs
The Zacks analyst is optimistic about NEOGEN’s year-over-year growth in international business despite the challenging global business climate.
KBR Banks on Government Solutions Business, Cost Overruns Ail
Per the Zacks analyst, KBR is likely to benefit from Government Business owing to strength in logistics, engineering and take-away wins.
Dow (DOW) Gains from Cost Actions, Project Investment
According to the Zacks analyst, Dow is well placed to benefit from cost synergy savings and productivity initiatives and its investment in high-return growth projects.
Western Digital (WDC) Rides on High-Capacity HDD Adoption
loan Growth Aids UMB Financial (UMBF), Capital Level Solid
Per the Zacks analyst, organic growth remains a key strength at UMB Financial. Higher revenues reflect improving loan and deposit balances. Further, strong capital base is a favorable factor.
Catastrophe Loss, Rising Expenses Ail AXIS Capital (AXS)
Per the Zacks analyst, higher losses from catastrophes affect the company’s underwriting results. Also rising expenses due to acquisition costs and interest expenses weigh on margin expansion.
High Debt, Elevated Expenses Concern Reinsurance Group (RGA)
Per the Zacks analyst, increasing expenses due to higher claims, interest credited and operating costs continues to affect the top line. Increased debt raises financial risk.
Chip Crunch & Elevated Capex to Hurt Autoliv (ALV)
The global deficit in semiconductor supply affecting low vehicle production is likely to hurt Autoliv’s near-term sales. High capital spending may also dent the firm’s margins, per the Zacks analyst.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PepsiCo, Inc. (PEP): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
Moderna, Inc. (MRNA): Free Stock Analysis Report
General Electric Company (GE): Free Stock Analysis Report
Dow Inc. (DOW): Free Stock Analysis Report
Comcast Corporation (CMCSA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.