Yahoo Finance Top Analyst Reports for Booking Holdings, U.S. Bancorp & CME Group
Friday, January 13, 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 Booking Holdings Inc. (BKNG), U.S. Bancorp (USB) and CME Group Inc. (CME). 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 >>>
Shares of Booking Holdings have declined -7.9% over the past year against the Zacks Internet - Commerce industry’s decline of -33.1%. The company is facing headwinds related to the coronavirus pandemic and macroeconomic uncertainties continue to remain overhangs. Further, intensifying competition in the online travel booking space remains a concern.
Nevertheless, Booking Holdings is benefiting from substantial improvement in its booking trends owing to increasing travel demand. A surge in repeat customers is creating growth in the company’s active customers. Further, the company is experiencing growth in rental car, airline ticket units and booked room nights, which is a positive.
Strong growth across the agency, merchant, and advertising and other businesses is contributing well. The Zacks analyst expects growth across these businesses to continue in the days ahead. Our estimates suggest agency, merchant, and advertising and other revenues will see year-over-year rises of 34.9%, 86.1% and 55.8%, respectively in 2022.
(You can read the full research report on Bookings Holdings here >>>)
Shares of U.S. Bancorp have underperformed the Zacks Banks - Major Regional industry over the past year (-24.8% vs. -22.2%). The company is witnessing rising expenses which might weigh on its bottom line in the upcoming quarters. A concentrated loan portfolio and legal hassles are other key headwinds.
However, U.S. Bancorp has a decent earnings surprise history, with earnings beating estimates in three of the trailing four quarters. Third-quarter results reflect a rise in revenues, supported by higher interest rates and margins.
The bank has received all required regulatory approvals for the acquisition of MUFG Union Bank’s core regional banking franchise. A solid business model and diverse revenue streams are likely to aid its financials. The company’s strong loan and deposit balances are positives. Its decent liquidity position is likely to support capital-deployment plans.
(You can read the full research report on U.S. Bancorp here >>>)
CME Group’s shares have declined -20.9% over the past year against the Zacks Securities and Exchanges industry’s decline of -27.5%. The company is facing escalating expenses due to higher technology cost are likely to put pressure on the company's margin expansion. Diversified product portfolio is significantly exposed to volatile interest rate, firm government regulations and limited credit availability in unstable capital and credit market. Also, stiff competition poses financial risk for the company.
However, CME Group’s strong market position driven by varied derivative product lines bodes well. Efforts to expand and cross sell through strategic alliances, acquisitions, new product initiatives and a stable global presence bode well.
Product innovation and growing proportion of volume from customers outside the United States have been aiding results. The company intends to focus more on over-the-counter clearing services.
(You can read the full research report on CME Group here >>>)
Other noteworthy reports we are featuring today include Consolidated Edison, Inc. (ED), PPG Industries, Inc. (PPG) and Diamondback Energy, Inc. (FANG).
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
Booking Holdings (BKNG) Banks on Improving Customer Bookings
U.S. Bancorp (USB) Rides on Strong Loan Balance and Buyouts
CME Group (CME) Banks on Improving Top Line, Expenses Hurt
Featured Reports
Investments Boost ConEd (ED), Poor Financial Ratios Ail
Per the Zacks analyst, solid investments aid Consolidated Edison's (ConEd) infrastructural development. Yet its poor financial ratios might hurt the stock's ability to duly meet its debt obligations.
Cost Reduction, Acquisitions to Aid PPG Industries (PPG)
Per the Zacks analyst, PPG will gain from cost savings through restructuring actions and synergies of acquisitions amid headwinds from higher raw material and logistics costs.
Diamondback (FANG) to Benefit from Low Breakeven Costs
The Zacks analyst likes Diamondback Energy's extremely low oil price breakeven costs, wherein the company needs the commodity to be at just $50 a barrel to be profitable.
Strong Demand for Products Aids The Cooper Companies (COO)
Per the Zacks analyst, The Cooper Companies witnessed strong demand for its products across several segments during the fourth quarter. The trend is likely to continue boosting the company's prospect.
Wynn Resorts (WYNN) Banks on Non-Gaming Revenues, Traffic Low
Per the Zacks analyst, Wynn Resorts is likely to gain from robust non-gaming business and expansion efforts in domestic markets. However, coronavirus-induced lower visitation in Macau is a concern.
Repligen (RGEN) Sales Fuel Growth Despite COVID-19 Headwinds
Repligen's product franchises continue to witness robust demand driven by both organic growth and acquisitions. The Zacks Analyst is concerned about the company's declining COVID-related sales.
Gol Linhas (GOL) Rides on Air Travel Demand, Fuel Costs Ail
The Zacks Analyst is impressed with the fact that increased air-travel demand is aiding Gol Linhas' top-line performance. However, rising fuel costs continues to weigh on the bottom line.
New Upgrades
Robust Digital Business Key to Ralph Lauren's (RL) Growth
Per the Zacks analyst, Ralph Lauren is making significant progress in expanding digital and omni-channel capabilities through ongoing investments.
Efforts to Boost Client Base to Aid Evercore (EVR) Revenues
Per the Zacks analyst, Evercor's efforts to boost its client base in advisory solutions, diversify revenue sources and geographical expansion initiatives are expected to support revenue growth.
Solid AUM, Liquidity Position Aid Artisan Partners (APAM)
Per the Zacks analyst, robust AUM will keep supporting Artisan Partners' revenues. Decent liquidity position will likely aid the firm to meet its debt obligations if economic conditions worsen.
New Downgrades
Intel (INTC) Plagued by Inflated Costs, Production Delays
Per the Zacks analystp, imposition of fresh lockdown restrictions, high debt burden, inflated raw material costs and signs of market saturation are likely to remain an overhang on Intel's performance.
Cost Inflation to Mar Constellation Brands' (STZ) Performance
Per the Zacks analyst, Constellation Brands has been witnessing weakness in the wine & spirits segment and higher costs due to inflation. This led to comparable earnings decline of 9% in Q3.
NVIDIA (NVDA) Hurt by Weakening Demand, High Inventory Level
Per the Zacks analyst, NVIDIA is hurt by weakening demand for its chips across the gaming and data center end-markets. Moreover, higher channel inventory level is negatively impacting chip prices.
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CME Group Inc. (CME) : Free Stock Analysis Report
U.S. Bancorp (USB) : Free Stock Analysis Report
PPG Industries, Inc. (PPG) : Free Stock Analysis Report
Consolidated Edison Inc (ED) : Free Stock Analysis Report
Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report
Booking Holdings Inc. (BKNG) : Free Stock Analysis Report
