Yahoo Finance Top Analyst Reports for Costco, Coca-Cola & Linde
Monday, November 27, 2023
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 Costco Wholesale Corporation (COST), The Coca-Cola Company (KO) and Linde plc (LIN). 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 >>>
Costco shares have outperformed the Zacks Retail - Discount Stores industry over the past year (+12.2% vs. -0.3%). The company being a consumer defensive stock has been surviving the market turmoil pretty well. The discount retailer’s key strengths are strategic investments, a customer-centric approach, merchandise initiatives, and an emphasis on membership growth.
These factors have been helping it register decent sales and earnings numbers. This outlook reflects Costco’s ability to navigate the challenging operating environment, generate solid sales, and register high membership renewal rates.
A favorable product mix, steady store traffic, pricing power and strong liquidity position should help Costco keep outperforming. While trading at a premium to its peers, its long-term growth prospects should help the stock see a solid upside.
(You can read the full research reprt on Costco here >>>)
Shares of Coca-Cola have modestly lagged the shares of rival Pepsico this year (-7.9% vs. -6.4%), but have underperformed the broader market in a big way (-7.9% vs. +19.6% for the S&P 500 index).
The company continues witness inflationary cost pressures, related to higher commodity and material costs, as well as higher marketing investments.
Nevertheless, Coca-Cola continues to witness positive business trends as reflected by its robust surprise history. KO’s sales and earnings beat estimates for the third consecutive quarter in third-quarter 2023. Earnings and sales also improved year over year.
Strong revenue growth across most of its operating segments aided by improved price/mix and increased concentrate sales boosted the results. It is poised to gain from innovations and accelerating digital investments. It provided an upbeat guidance for 2023.
(You can read the full research report on Coca-Cola here >>>)
Linde shares have outperformed the Zacks Chemical - Specialty industry over the past year (+24.4% vs. +11.6%). The company is making the world more productive by the day with its wide range of applications for its industrial gases. Linde’s primary products in industrial gases include oxygen, which is used as life support in hospitals.
The company has long-term contracts with on-site customers backed by minimum purchase requirements, thereby securing stable cashflows. In the profitable industrial gas market, the merger of Praxair and Linde has created an efficient player with considerable size advantages.
However, increasing competition for new projects in emerging markets is concerning. The company faces vulnerability due to economic growth slowdown, potentially impacting industrial gas demand. Linde's history of consistently offering lower dividend yields compared to the composite stocks belonging to the sector concerns income-oriented investors.
(You can read the full research report on Linde here >>>)
Other noteworthy reports we are featuring today include Comcast Corporation (CMCSA), Verizon Communications Inc. (VZ) and Chubb Limited (CB).
Director of Research
Sheraz Mian
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
Decent Comparable Sales Run to Fuel Costco's (COST) Top Line
Coca-Cola's (KO) Digital Investments to Aid the Top Line
Linde's (LIN) Contracts With Minimum Volume Requirements Aid
Featured Reports
Wireless Subscriber Gain Drives Comcast's (CMCSA) Prospects
Per the Zacks Analyst, Comcast benefits from an expanding wireless subscriber base as well as strong adoption of Peacock streaming service.
Verizon (VZ) Rides on Wireless Traction, Improved Network
Per the Zacks analyst, Verizon is likely to benefit from significant 5G adoption and fixed wireless broadband momentum with various mix and match pricing plans backed by improved network capabilities.
PayPal (PYPL) Benefits From Increasing Total Payment Volume
Per the Zacks analyst, PayPal's total payment volume is rising owing to solid adoption of Venmo and merchant services. Further, growing momentum across PayPal Checkout experiences is positive.
Investments & Higher Fee-Based Earnings Aid ONEOK (OKE)
Per the Zacks analyst, ONEOK is set to benefit from fee-based earnings and midstream assets located in productive regions. Investments made to expand pipelines will drive its performance.
IQVIA Benefits From Global IT Infrastructure, Liquidity Low
Per the Zacks Analyst, IQVIA's strong healthcare-specific global IT infrastructure places it firmly in the life sciences space. Low liquidity remains a concern.
Productivity Initiatives Aid TopBuild (BLD), High Costs Hurt
Per the Zacks analyst, TopBuild is benefiting from productivity initiatives, accretive acquisitions and favorable pricing. However, high costs and macroeconomic risks hurt prospects.
Pricing Actions Benefit AGCO Corp. (AGCO) Amid High Costs
Per the Zacks analyst, AGCO's results are poised to benefit from higher sales of high-power tractors. Pricing, cost reduction and strategic investments will help offset the impacts of elevated costs.
New Upgrades
Chubb (CB) Continues to Gain From Strategic Acquisitions
Per the Zacks analyst, buyouts have helped Chubb in domestic as well as international expansion, boosted the portfolio of products and services and aided revenue growth.
Woodward (WWD) Benefits from Momentum in Aerospace Segment
Per the Zacks analyst, Woodward's performance is gaining from strength in its Aerospace segment. The Industrial segment is expected to gain from higher demand for power generation
Robust Sales Uptake for Elahere Aid ImmunoGen's (IMGN) Growth
Per the Zacks analyst, the recent launch of ImmunoGen's lead product, Elahere, have given a huge boost to its top line. The company's collaborations with big healthcare companies are also encouraging.
New Downgrades
Persistent Project Delays and High costs Hurt MasTec (MTZ)
Per the Zacks analyst, MasTec's business is being hurt by persistent delays on certain Clean Energy and Infrastructure segment projects. Also, supply chain disruptions and high costs are a concern.
High Cost & Low Investment Management Fee Ail Franklin (BEN)
Per the Zacks analyst, Franklin's rising operating costs on investments in technology are concerning. Volatile investment management fees and a strict regulatory environment are other headwinds.
Forex Volatility, Stiff Competition Impairs Avantor (AVTR)
The Zacks analyst is worried about Avantor's operation in a tough competitive market and volatile foreign exchange space.
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CocaCola Company (The) (KO) : Free Stock Analysis Report
Verizon Communications Inc. (VZ) : Free Stock Analysis Report
Comcast Corporation (CMCSA) : Free Stock Analysis Report
Chubb Limited (CB) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Linde PLC (LIN) : Free Stock Analysis Report
