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Top Analyst Reports for Procter & Gamble, UPS, Verizon & Wells Fargo

Tuesday, September 27, 2022

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), Verizon Communications Inc. (VZ) and Wells Fargo & Company (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 >>>

Procter & Gamble shares have declined -3.5% over the past year against the Zacks Soap and Cleaning Materials industry’s decline of -7.6%. The unfavorable mix of commodity cost inflation, increase in freight costs, product and packaging investments and other impacts hurt margins. It expects higher commodity and freight costs to persist in fiscal 2023.

However, earnings and sales improved year over year. Results have been driven by higher sales, robust pricing and a favorable mix. Improved productivity amid cost headwinds also aided the results.

Management issued a favorable view for fiscal 2023. It witnessed SG&A expense leverage, owing to savings from overhead and marketing expenses, and cost leverage gains due to higher sales and real estate.

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

Verizon’s shares have declined -28.1% over the past year against the Zacks Wireless National industry’s decline of -24.7%. The company have lowered its guidance for 2022 due a to challenging macroeconomic environment. An intensely competitive market and hefty expenses on promotions and lucrative discounts to attract customers are likely to hurt its profitability. High auctioning expenses for the mid-band spectrum are expected to further compromise margins.

However, Verizon plans to accelerate the availability of the 5G Ultra Wideband network with C-Band deployment, focusing on 5G mobility, nationwide broadband, mobile edge compute and business solutions. It is offering various mix-and-match pricing in both wireless and home broadband plans which led to solid customer additions.

It continues to deploy the latest 4G LTE Advanced technologies to deliver faster peak data speeds and capacity for customers driven by customer-focused planning, disciplined engineering and investments.

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

Wells Fargo shares have declined -12.9% over the past year against the Zacks Banks - Major Regional industry’s decline of -27.9%. Due to legal hassles, Wells Fargo has been penalized with business restrictions and a monetary fine. Restrictions on asset growth will continue to limit loan expansion ability. A decline in originations might limit mortgage banking income.

However, the company’s progress on efficiency initiatives propelled expense control and savings, which are likely to support its bottom line in upcoming period. Strength in the deposit balance will aid the bank’s liquidity position.

The company’s solid liquidity position will help to meet its debt obligations if the economic situation worsens. Also, capital deployment activities seem sustainable.

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

Other noteworthy reports we are featuring today include Advanced Micro Devices, Inc. (AMD), Infosys Limited (INFY), and Uber Technologies, Inc. (UBER).

Sheraz Mian

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

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

Verizon (VZ) Rides on 5G Network, Healthy Customer Additions

Cost Control Aids Wells Fargo (WFC) Amid Declining Revenues

Featured Reports

Robust Product Portfolio & Partnerships Aid AMD's Prospects
Per the Zacks analyst, Advanced Micro Devices is benefiting from strong adoption of EPYC, Ryzen and Radeon processors. Moreover, alliances with Baidu, Amazon and Microsoft, bode well.

Digital Transformation, AI Proliferation Aid Infosys (INFY)
Per the Zacks analyst, Infosys is benefiting from large deal wins and higher investments by clients in digital transformation, artificial intelligence and automation.

Uber (UBER) Rides on Delivery Business Amid Rising Expenses
The Zacks Analyst likes Uber's efforts to expand its Delivery operations in response to the surge in business. However, rising costs and expenses are concerning as they pose a threat to Uber's bottom

Recent Drug Approvals Aid Bayer (BAYRY), Stiff Rivalry a Woe
Per the Zacks analyst, Bayer has undertaken several initiatives to strengthen its portfolio. However, competition from generic threats remains a concern.

Favorable Budget Aids L3Harris (LHX), Higher Cost May Hit
Per the Zacks analyst, increased budgetary provision for defense spending boost growth prospects for L3Harris Technologies. Yet tight labor market induced cost hike for airlines may hurt the stock.

End-Market Strength Aids Nordson (NDSN) Amid Cost Headwinds
Per the Zacks analyst, robust demand for packaging and assembly product lines in the food and beverage, and industrial end markets buoy Nordson's growth. However, rising cost of sales is concerning.

Cheniere (LNG) to Gain from Sustained Gas Export Strength
The Zacks analyst believes that being one of the few liquefied natural gas exporters of the U.S., Cheniere Energy is set to capitalize on the sustained strength in shipments to Europe and Asia.

New Upgrades

Cheniere (LNG) to Gain from Sustained Gas Export Strength
The Zacks analyst believes that being one of the few liquefied natural gas exporters of the U.S., Cheniere Energy is set to capitalize on the sustained strength in shipments to Europe and Asia.

Iridium's (IRDM) Performance Gains from Higher Subscribers
Per the Zacks analyst, Iridium's performance is gaining from increasing subscribers. The company expects commercial service revenues to benefit from growth in IoT and ongoing activations.

Product Innovations to Aid JAKKS Pacific's (JAKK) Top Line
Per the Zacks analyst, JAKKS Pacific's solid international footprint, focus on innovation and collaborations with popular brands and movie franchisees should boost top-line growth.

New Downgrades

Intel (INTC) Plagued by Production Delays, Forex & Debt Woes
Per the Zacks analyst, Intel is likely to plagued by production delays pertaining to 7 nm ramp up program, imposition of fresh lockdown restrictions in some markets, forex woes and high debt burden.

News Corporation (NWSA) Subscription Video Unit Remains Soft
Per Zacks analyst, News Corporation's Subscription Video unit has been soft. Revenues dipped year over year in fourth quarter on adverse currency and lower revenues from residential broadcast product.

Catastrophe Loss, Rising Expenses Ail CNA Financial (CNA)
Per the Zacks analyst, higher losses from catastrophes affect CNA Financial's underwriting results. Also rising expenses due to higher non-insurance warranty expense weigh on margin expansion.

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Wells Fargo & Company (WFC): Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
Verizon Communications Inc. (VZ): Free Stock Analysis Report
Procter & Gamble Company The (PG): Free Stock Analysis Report
Infosys Limited (INFY): Free Stock Analysis Report
Uber Technologies, Inc. (UBER): Free Stock Analysis Report
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