March 29, 2024

Earn Money

Business Life

Top Stock Reports for Tesla, Disney & PepsiCo

Monday, August 17, 2020

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 Tesla (TSLA), The Walt Disney Company (DIS) and PepsiCo (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 >>>

Tesla shares have literally been on fire lately, witth the stock up mroe than +90% over the last six months. The Zacks analyst believes that this momentum can continue on the back of robust Model 3 demand, ramp up of Model Y production, significant Shanghai Gigafactory progress, amazing line-up of upcoming products and aggressive expansion efforts.

The red hot EV maker recently posted the fourth consecutive quarterly profit, which qualifies it for inclusion in the S&P 500 list. Tesla has a first-mover advantage in the EV space with high range vehicles, superior technology, and software edge.

However, high R&D, SG&A costs and massive capex may clip the margins. Tesla is investing heavily to increase production capacity, boost sales and construct Gigafactories, which are likely to strain its near-term prospects. Waning margins for Model S/X is another concern.

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

Shares of Disney have lost -9.8% in the year to date period against the Zacks Media Conglomerates industry’s fall of -10.3%. The Zacks analyst believes that Disney benefits from the growing popularity of Disney+, owing to a strong content portfolio and a cheaper bundle offering despite stiff competition.

Disney reported disappointing third-quarter fiscal 2020 results as its businesses were adversely affected by the coronavirus outbreak. The company’s domestic parks and resorts, cruise-line business, and Disneyland Paris were closed in the reported quarter.

Shanghai Disney Resort re-opened in May and Hong Kong Disneyland Resort, despite reopening in late June, was closed again in July. The pandemic affected Disney’s third-quarter segmental operating income by $3.5 billion. Upcoming launches in the Nordics, Belgium, Luxembourg, Portugal and Latin America are expected to rapidly expand subscriber base.

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

PepsiCo shares have gained +1.5% over the past three months against the Zacks Soft Drinks Beverages industry’s rise of +6.1%. The Zacks analyst believes that the company has gained from its strong portfolio of brands, a responsive supply chain and flexible go-to-market systems, which helped maintain continued supplies amid the coronavirus pandemic.

The company’s top and bottom line surpassed the Zacks Consensus Estimate for the sixth straight quarter in second-quarter 2020. Despite the coronavirus outbreak, results gained from resilience in the global snacks and foods business.

Lifting of restrictions and the gradual easing of challenges as the quarter progressed also aided results by improving business performance and channel mix. However, declines in the beverage category hurt volumes and top line growth in the second quarter. Also, adverse currency rates and higher operating expenses remain headwinds.

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

Other noteworthy reports we are featuring today include Caterpillar (CAT), Zoetis (ZTS) and Charles Schwab (SCHW).

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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

Rising Model 3 Deliveries Aid Tesla (TSLA), High Capex Ail

Disney+ Drives Disney (DIS) Amid Coronavirus-Led Disruption

PepsiCo (PEP) Snacking Business Remains Robust Amid Pandemic

Featured Reports

Caterpillar (CAT) Bets on Cost Control Amid Weak Demand

Per the Zacks analyst, Caterpillar’s focus on cutting down costs will help sustain margins despite weak demand owing to the impact of the coronavirus pandemic.

New Products, Acquisitions Fuel Zoetis (ZTS) Amid Competition

Per the Zacks analyst, Zoetis companion animal business driven by higher sales of Apoquel and Simparica should maintain growth amid competition.

Buyouts, Trading Focus Support Schwab (SCHW) Amid Low Rates

Per the Zacks analyst, strategic acquisitions and efforts to strengthen trading business will likely support Schwab’s profitability.

Cost Management & Regulated Investments Aid Exelon (EXC)

Per the Zacks analyst Exelon’s cost management initiatives will have positive impact on margins and strengthen its operation.

Retail Loan Growth Aid ICICI Bank (IBN), High Costs a Woe

Per the Zacks analyst, ICICI Bank is poised for growth supported by a continued rise in retail loans and a stable funding base.

Phillips 66 (PSX) Banks on Midstream Unit, Refining Hurts

The Zacks analyst expects Phillips 66 to generate cashflow from midstream business since the Gray Oak Pipeline is operating in full capacity.

Soft Jet Demand Hit TransDigm (TDG) Amid Solid Cash Position

Per the Zacks analyst, coronavirus impact led weak demand in commercial aerospace hurt TransDigm’s results. However, its improving cash balance should offer financial stability.

New Upgrades

Portfolio Strength Drives Autodesk’s (ADSK) Growth Prospects

Per the Zacks Analyst, Autodesk benefits from portfolio strength and expanding subscriber base driven by strong adoption of BIM 360 and Fusion tools.

Robust Digital Media Revenues Benefit J2 Global (JCOM)

Per the Zacks analyst, J2 Global’s focus on expanding its digital media business and healthy display business which derives almost 40% revenues from healthcare space is driving top-line growth.

Solid Subscription & Political Ad Revenues Aid TEGNA (TGNA)

Per the Zacks analyst, TEGNA is benefiting from continued spike in subscription revenues and strong spending on political advertisements.

New Downgrades

Market-Woes and High Leverage to Hurt Ingersoll Rand (IR)

Per a Zacks analyst, the pandemic-related headwinds will likely hurt Ingersoll Rand’s (IR) performance in the third quarter. Also, increase in leverage in the short term might be concerning.

Low End-Market Demand & High Debt Restrict HD Supply (HDS)

Per the Zacks analyst, HD Supply is struggling with weakness across all of its businesses, owing to the soft end-market demand amid the coronavirus outbreak.

Pandemic-led Sales Disorder, Weak Margin Irk Omnicell (OMCL)

The Zacks analyst is worried about Omnicell witnessing slowdown in product booking and hospital purchasing decisions amid the pandemic-led chaos. Margin contractions are discouraging too.

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
 
Zoetis Inc. (ZTS) : Free Stock Analysis Report
 
Tesla, Inc. (TSLA) : Free Stock Analysis Report
 
The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
 
PepsiCo, Inc. (PEP) : Free Stock Analysis Report
 
The Walt Disney Company (DIS) : Free Stock Analysis Report
 
Caterpillar Inc. (CAT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.

Source Article