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Top Analyst Reports for Alibaba, Procter & Gamble & Wells Fargo

Mark Vickery
·6-min read

Thursday, January 21, 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 Alibaba Group (BABA), Procter & Gamble (PG) and Wells Fargo (WFC). 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 >>>

Alibaba shares have underperformed the Zacks Internet Commerce industry over the past year (+19.4% vs. +50.7%). The Zacks analyst believes that the company continues to benefit from strong growth in metrics.

Further, Alibaba’s strengthening cloud business with its expanding customer base continues to drive its performance. Its New Retail strategy is also gaining momentum. This is aiding growth in Tmall Import, Hema fresh food grocery business and Intime Department Stores.

However, higher costs associated with new initiatives remain a major concern. Also, COVID-19 related economic uncertainties and macro headwinds in China are major concerns. In addition, rising competition from e-commerce players poses a risk.

(You can read the full research report on Alibaba here >>>)

Shares of Procter & Gamble have gained +4.6% in the last six months against the Zacks Soap and Cleaning Materials industry’s gain of +4.1%. The Zacks analyst believes that Procter & Gamble stock has been benefiting from its robust earnings and sales surprise trend.

While it has reported an earnings surprise for the past several quarters, revenues topped estimates for the third straight time in the fiscal second-quarter. Further, earnings and sales improved on a year over year basis. Results were driven by robust top-line growth and improved margins.

Margins benefited from cost leverage and productivity initiatives, while sales were aided by strength across all segments, robust shipments, pricing and mix. It delivered adjusted free cash flow productivity of 113% in the fiscal second quarter. Driven by the robust results, it raised its outlook for fiscal 2021. However, currency headwinds are likely to affect results in fiscal 2021.

(You can read the full research report on Procter & Gamble here >>>)

Wells Fargo’s shares have gained +39.6% over the past three months against the Zacks Major Regional Banks industry’s rise of +30.5%. The Zacks analyst believes that the company's efforts to enhance compliance and risk-management capability, along with streamlining activities, are encouraging.

The company's earnings surprise history is decent, having surpassed the Zacks Consensus Estimate in two of the trailing four quarters. Fourth-quarter results reflect benefits from reserve releases and lower expenses, partly muted by decline in revenues. Also, strong deposits balance depicts robust liquidity position.

Moreover, the company carries less credit risk in case of any economic downturn. Also, declining expenses due to its cost savings efforts, might support bottom-line growth. Nevertheless, Wells Fargo's revenues remain under pressure due to low rates and volatile fee income trend. Legal hassles also pose a concern.

(You can read the full research report on Wells Fargo here >>>)                 

Other noteworthy reports we are featuring today include Alphabet (GOOGL), Netflix (NFLX) and NextEra Energy (NEE).

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Mark Vickery
Senior Editor

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

Alibaba (BABA) Drives On Cloud Growth; Investments Hurt

P&G's (PG) Productivity & Cost Savings Plan to Aid Margins

Cost Control Strategy Aids Wells Fargo (WFC) Amid Low Rates

Featured Reports

Alphabet (GOOGL) Rides on Diversification; Legal Troubles Ail

The Zacks analyst believes that Alphabet's strong mobile, focus on cloud, artificial intelligence, Android OS and hardware is a positive.

Robust Content Aids Netflix (NFLX) Amid Stiff Competition

Per the Zacks analyst, Netflix's robust content portfolio is driving subscriber addition that is helping to it steer away competition from Disney+, Apple TV+, Amazon prime video, HBO Max and Peacock.

NextEra (NEE) Gains from Steady Investment, Renewable Focus

Per the Zacks analyst, NextEra's planned investment to enhance clean electricity generation and strengthen its infrastructure will boost its profitability.

HIV, Coronavirus Drug Fuel Gilead (GILD) Amid Competition

Per the Zacks analyst, Gilead's HIV franchise maintains momentum on new approvals as HCV business dwindles.

Dollar General's (DG) Sturdy Comps Run to Propel Top-Line

Per the Zacks analyst, better price management, merchandise efforts, operational initiatives and coronavirus-led demand should drive sales.

Rising Demand for Telehealth Services Aids Teladoc (TDOC)

Per the Zacks analyst, a surge in adoption of remote healthcare services in the backdrop of the pandemic is driving demand for Teladoc's services, thus aiding it's revenues.

Final-Mile Revenues Aid J.B. Hunt (JBHT), Intermodal Ails

The Zacks analyst is impressed by the 21.5% year-over-year increase in revenues at the Final Mile Services segment during 2020.

New Upgrades

Electronic Focus & Low Costs Aid Interactive Brokers (IBKR)

Per the Zacks analyst, Interactive Brokers' continued focus on the Electronic Brokerage segment along with lower level of compensation costs and development of proprietary software will aid profits.

Diamondback (FANG) to Gain from its Ownership in Rattler Midstream

The Zacks analyst believes Diamondback's substantial ownership interest in its infrastructure spin-off Rattler Midstream provides it with a steady and growing revenue stream.

Portfolio Strength, Robust M&A Strategies Aid Sensata (ST)

Per the Zacks analyst, evolving product portfolio and robust merger & acquisition strategies on the back of cost-effective operations boost Sensata's growth momentum.

New Downgrades

Hormel Foods (HRL) Foodservice Business Soft Amid Pandemic

Per the Zacks analyst, Hormel Foods' foodservice business has been seeing soft demand due to the pandemic-led social distancing. In fourth-quarter fiscal 2020, U.S. foodservice channel cales fell 23%.

Iovance's (IOVA) Dependence on Collaborations Raises Concern

Per the Zacks analyst, with no marketed drug Iovance is dependent on collaborations for revenues, which raises concern. Competition in immuno-oncology therapies is another threat.

Pandemic-Led Rent Collection Woes to Hurt PS Business (PSB)

Per the Zacks analyst, the concentration of small and mid-size tenants, is resulting in rent relief and limits revenue growth of PS Business Parks.

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Wells Fargo & Company (WFC) : Free Stock Analysis Report
Procter & Gamble Company The (PG) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
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