Top Analyst Reports for Coca-Cola, BP & Alibaba

Monday, October 9, 2017

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 Coca-Cola (KO), BP (BP) and Alibaba Group Holdings (BABA). 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 Coca-Cola have underperformed the Zacks Soft Drinks Beverages industry since the beginning of the year, (+9.7% vs. +11%). Coca-Cola’s sales are affected by declining demand in certain emerging and developing markets and a shift in consumer preference. Also, severe macroeconomic challenges in certain international markets have impacted results for the cola giant, which generates about half of its sales abroad.

However, Coca-Cola’s increased marketing investments are driving volume growth in stable markets like North America. Moreover, the company is on track to achieve total annualized productivity saving target of approximately $3.8 billion by 2019 from the initiatives implemented under this program since its beginning. Also, Coca-Cola’s new revenue platforms should drive growth over the long term.

(You can read the full research report on Coca-Cola here >>>).

BP has gained +2.3% year to date, outperforming the Zacks Oil & Gas-International Integrated industry’s +0.2% gain. BP recently commenced natural gas production at the Khazzan field in Oman. The company is one of the largest integrated energy firms in the world, with a strong and diversified portfolio of development projects.

The project, expected to have an inventory of 300 drilling wells, is the largest start-up by BP in 2017. Also, it is the sixth project start-up among the seven new key developments of the company this year. All the projects are likely to take the energy giant closer to its target of adding 800,000 barrels of oil equivalent per day by 2020.

However, the oil spill incident of 2010 in the BP-operated Macondo Prospect continues to affect the company. Although BP has cleared the substantial litigation expenses related to the spill, it had to divest some of its best operating properties. 

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

Buy-rated Alibaba's shares have outperformed the Zacks Electronic Commerce industry, on a year-to-date basis, gaining +104.1% vs. +51.9%. Alibaba Group is a Chinese e-Commerce giant which caters mainly to its native market. The company’s fiscal first-quarter results exceeded the Zacks Consensus Estimate on revenues and earnings.

Alibaba’s strong core e-commerce business, its continued efforts to develop new products, international growth opportunities, strong financial position and and growing cloud computing services are positives. However, macro headwinds, continued investments and increasing competition from Tencent Holdings and Baidu remain the overhangs.

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

Other noteworthy reports we are featuring today include EOG Resources (EOG), U.S. Bancorp (USB) and Vale S.A. (VALE).

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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

Coca-Cola (KO) Gains from Marketing & Innovation Efforts

BP Plc (BP) Banks on Upstream Projects Amid Oil Spill Woes

Alibaba (BABA) Benefits from Strategic Investment in Intime

Featured Reports

Loan Growth Aids U.S. Bancorp (USB), High Costs a Woe

Per Zacks analyst, U.S. Bancorp's loans balance continues to grow due to increasing market share and client relationships.

United Therapeutics' (UTHR) PAH Strength Facing Competition

Per the Zacks analyst, United Therapeutics holds a strong position in the PAH market with four drugs, however, sales growth has slowed lately as competition in the PAH market is gradually rising.

Embraer (ERJ) Leads Commercial Jet Market, High Penalties Ail

Per the Zacks analyst, Embraer leads the 70- to 130-seat commercial jet market with a series of healthy contracts. However, need to pay higher penalties in future might bring further losses.

Wireless Spectrum, Internet TV Services to Boost DISH (DISH)

Per the Zacks analyst, DISH Network should benefit from its extensive portfolio of wireless spectrum and Internet TV service - Sling TV, while it continues to lose subscribers due to cord-cutting.

Vale (VALE) Boosts Mining Productively Amid Pricing Woes

The Zacks Analyst thinks that further decline in iron ore prices might hurt Vale's near-term results.

Illumina (ILMN) Gains on Product Launch, Margin Woe to Stay

The Zacks analyst is bullish on Illumina riding high on product launches including the latest release of VeriSeq NIPT in Europe and strong uptake of NovaSeq.

EOG Resources (EOG) Gains on Eagle Ford Acreage, Debts High

Huge inventory of premium drilling wells in the Bakken and Eagle Ford shale plays will contribute to EOG Resources' oil production, per the Zacks analyst.

New Upgrades

Iron Mountain (IRM) Expands with Credit Suisse Asset Buyout

Per the Zacks analyst, Iron Mountain's recent announcement to acquire Credit Suisse data centers in London and Singapore will help it gain ground in the international markets.

Strong Government Business, Balance Sheet Aids Cigna (CI)

The Zacks analyst views favorably Cigna's strong government business which includes Medicare Advantage and Medicaid businesses. Its strong balance sheet aids investments for growth.

Hanesbrands (HBI) Gains from Buyouts and Cost Saving Efforts

Acquisition related synergies have been aiding HanesBrands growth lately, per Zacks analyst. The company is also savings costs through Project Booster to improve efficiency and drive profits.

New Downgrades

Symantec's (SYMC) Profits May be Hurt by Sale of CA Business

Although the sale of certified authority (CA) business will avoid conflicts with Alphabet, the high margin of the sold business may hurt Symantec's near-term profitability, per the Zacks analyst.

Falling Production, High Debt Pose Threat for Goldcorp (GG)

Per the Zacks analyst, Goldcorp's weakening production (as reflected by its FY17 outlook) and a debt-laden balance sheet remain concerns. It is also exposed to a volatile gold pricing environment.

Hasbro's (HAS) Revenues Hurt by Low Demand, Industry Woes

Per the Zacks Analyst, increased competition from alternative modes of entertainment has been hurting demand and, in turn, Hasbro's revenues.

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VALE S.A. (VALE) : Free Stock Analysis Report
 
U.S. Bancorp (USB) : Free Stock Analysis Report
 
Coca-Cola Company (The) (KO) : Free Stock Analysis Report
 
EOG Resources, Inc. (EOG) : Free Stock Analysis Report
 
BP p.l.c. (BP) : Free Stock Analysis Report
 
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
 
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