Top Analyst Reports for Procter & Gamble, Enterprise Products & UBS Group

Tuesday, December 31, 2019

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 The Procter & Gamble Company (PG), Enterprise Products Partners L.P. (EPD) and UBS Group AG (UBS). 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 >>>

Procter & Gamble’s shares have outperformed the Zacks Soap and Cleaning Materials industry over the past one-year period (+35.4% vs. +21.8%).The company’s solid first-quarter fiscal 2020 results, wherein both top and bottom lines not only surpassed the Zacks Consensus Estimate but also improved year over year, is driving the stock momentum.

Strong organic sales growth, backed by higher shipment volume and favorable price/mix, boosted the top line. Again, ongoing cost-saving and productivity efforts cushioned margins and in turn the bottom line.

However, the company’s significant international presence exposes it to foreign currency risks, which have been weighing on the company’s performance.

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

Shares of Enterprise Products have gained +13.3% in the past one-year period against the Zacks Oil and Gas - Production Pipeline - MLB industry’s rise of +4.2%. Enterprise Products boasts an extensive network of pipeline that spreads across nearly 50,000 miles. Importantly, this network is connected to every major U.S. shale play, and provides services to producers and users of various commodities.

Notably, the partnership is well positioned to generate additional cash flow from $9.1 billion worth of growth capital projects – including the Midland & ECHO storage expansions – that are currently under construction. However, the partnership’s levered balance sheet can restrict its financial flexibility.

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

UBS Group’s shares have outperformed the Zacks Banks - Foreign industry over the past three-month period (+13.0% vs. +7.0%). The company continues to execute restructuring initiatives to free resources and invest in profitable areas to service clients with greater dexterity, improving quality and speed to market. Further, the company's cost-saving plans will aid the bottom-line expansion. Moreover, UBS Group AG remains focused on building capital levels and undertaking global-expansion initiatives.

However, appreciation of the Swiss franc against other currencies is a headwind. Further, unsustainable capital-deployment activities keep us apprehensive.

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

Other noteworthy reports we are featuring today include Nokia Corporation (NOK), Cintas Corporation (CTAS) and OGE Energy Corp. (OGE).

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q3 2019, while the S&P 500 gained +39.6%, five of our strategies returned +51.8%, +57.5%, +96.9%, +119.0%, and even +158.9%.

This outperformance has not just been a recent phenomenon. From 2000 – Q3 2019, while the S&P averaged +5.6% per year, our top strategies averaged up to +54.1% per year.

See their latest picks free >>

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

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

Enterprise (EPD) Banks on $9B Midstream Project, Debts High

Cost Control Aids UBS Group AG (UBS), Negative Rates A Woe

Featured Reports

Generation Projects Aids OGE Energy (OGE), Regulations Hurt

Per the Zacks Analyst, OGE Energy's generation projects will likely boost its performance.

Growth Projects and Cost Management to Aid Kinross (KGC)

Per the Zacks analyst, Kinross should gain from efforts to advance its growth projects, especially Tasiast. It will also benefit from its focus on managing costs and improve cash flow.

Nokia (NOK) Taps on Vertical Markets to Fuel Growth Engine

Per the Zacks analyst, Nokia is witnessing healthy underlying momentum with expansion into high growth and high margin vertical markets to address opportunities beyond its traditional markets.

Product Launches & Cost Reduction Plans Aid Juniper (JNPR)

Per the Zacks analyst, Juniper remains poised to benefit from an advanced networking architecture, backed by new product launches and rising market share globally.

Digital Growth Aids Marriott Vacations (VAC), Debt Woes Stay

Per the Zacks analyst, strong revenue-building capacities, digital innovations and synergies from ILG acquisition encourage bode well.

Cintas (CTAS) Rides On New Product Offerings, High Costs Ail

Per the Zacks analyst, impressive traction of Cintas' Uniform Rental & Facility Services segment, supported by improved product offerings should drive its sales.

Low Fuel Costs Aid Copa Holdings (CPA) Amid MAX 737 Woes

The Zacks analyst likes the low fuel-cost scenario, which is supporting bottom-line growth. However, flight cancellations due to the grounding of the Boeing 737 MAX jets are hurting revenues.

New Upgrades

Cincinnati Financial (CINF) Benefits From Commercial Lines

Per the Zacks analyst, solid performance at the Commercial Lines Insurance segment backed by several growth initiatives and increase in insurance rates has been driving revenue growth at the company.

Continued Rise in Loans Aid Hilltop Holdings (HTH) Top Line

Per the Zacks analyst, driven by continued rise in loans, Hilltop Holdings' revenues are likely to improve. Given a solid balance sheet, the company is expected to expand through acquisitions as well.

Cypress (CY) Rides on Product Strength, End-Market Growth

Per the Zacks analyst, Cypress is gaining from its robust wireless, USB-C and PSoC product suite, which is driving customer momentum. Growth across industrial, automotive and legacy markets is a boon.

New Downgrades

Higher Operating Expenses Continue to Hurt Luminex (LMNX)

Per the Zacks analyst, rise in total operating expenses due to increase in higher research and development as well as selling, general and administrative costs might hurt operating margin expansion.

AXIS Capital (AXS) Hurt by Catastrophe Loss & High Costs

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.

Weak Imaging Business, Stiff Competition Hurts Nikon (NINOY)

Per the Zacks analyst, Nikon Corp is hurt by headwinds in the Imaging Business unit amid intensifying competition in the entry and mid-level DSLR camera markets.

undefined undefined
 
UBS Group AG (UBS) : Free Stock Analysis Report
 
Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
 
OGE Energy Corporation (OGE) : Free Stock Analysis Report
 
Nokia Corporation (NOK) : Free Stock Analysis Report
 
Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report
 
Cintas Corporation (CTAS) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research