Top Research Reports for Apple, Wells Fargo & BHP Group

Wednesday, June 10, 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 Apple (AAPL), Wells Fargo (WFC) and BHP Group (BHP). 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 >>>

Apple’s shares have outperformed the S&P 500 over the past year (+76.6% vs. +11.1%). The Zacks analyst believes that the company is benefiting from a continued momentum in the Services segment, driven by strong App Store sales and the robust adoption of Apple Music and Apple Pay.

Non-iPhone devices, particularly Apple Watch and AirPod, are other notable drivers in the long haul. However, iPhone sales are expected to remain bleak in the near term due to the negative impact of the coronavirus. In fact, the company expects iPhone and Wearables business revenues for the fiscal second quarter to be worse on a year-over-year basis than the fiscal first quarter.

On the contrary, iPad and Mac revenues are expected to improve but lower economic activity will hurt AppleCare and advertising businesses. The company didn’t provide any guidance due to the pandemic-triggered uncertainty.

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

Shares of Wells Fargo have lost -38.6% over the past six months against the Zacks Major Regional Banks industry’s fall of -22%. The Zacks analyst believes that the company's investment in the businesses to enhance compliance and risk-management capability seem encouraging.

However, the company's earnings surprise history remains unimpressive, having surpassed the Zacks Consensus Estimate in only one of the trailing four quarters. Wells Fargo's revenues remain under pressure due to lower interest rates and volatile fee income. Also, rising costs in providing benefits to clients amid coronavirus concerns might curb bottom-line growth. Legal hassles also remain a concern.

Moreover, streamlining activities along with rising loans and deposits balance remain tailwinds. Also, debt level postion remains manageable. Recently, at a virtual conference, the company provided a grim outlook for the current quarter.

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

BHP Group’s shares have gained +47.4% over the past three months against the Zacks SMining - Miscellaneous industry’s rise of +37.7%. The Zacks analyst believes that the company will benefit from the recent surge in iron and copper prices. The consensus estimate for earnings for the current fiscal has undergone positive revisions lately.

BHP Group’s copper and iron ore production increased year over year in the nine month period ended Mar 31, 2020, while petroleum, metallurgical coal, energy coal and nickel production declined. The company affirmed petroleum, iron ore and metallurgical coal production and cost guidance for fiscal 2020 despite the pandemic.

Its strong cash flow and focus on lowering debt will help it sail through these turbulent times. The company has six major projects under development in petroleum, copper, iron ore and potash, which will drive growth in the long run. However, slowdown in global growth on account of the pandemic remains a headwind in the near term.  

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

Other noteworthy reports we are featuring today include Amazon.com (AMZN), Royal Dutch Shell (RDS.A) and Marriott International (MAR).

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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

Apple (AAPL) Banks on Services to Counter Coronavirus Chaos

Loan Growth and Streamlining Support Wells Fargo (WFC)

Liquidity, High Iron Prices Aid BHP Group (BHP), Costs Hurt

Featured Reports

Growing AWS Adoption & Prime Momentum Benefit Amazon (AMZN)

Per the Zacks analyst, Amazon is riding on expanding AWS clientele driven by its robust cloud offerings.

Royal Dutch Shell (RDS.A) to Gain from Growing LNG Demand

The Zacks analyst believes that Shell's position as a major supplier of LNG should help the company to improve cash flow even further.

Marriott (MAR) Reopen All Hotels in China, Low RevPAR Hurts

Per the Zacks analyst, Marriott International is likely to benefit from hotel re-openings in china along with steady recovery in the U.S. markets.

Equity Residential (EQR) to Gain From Strong Tenant Base

Per the Zacks Analyst, a financially-strong tenant base will drive higher rent collections amid the pandemic-induced concerns over tenant defaults.

Hilton (HLT) Reopen Hotels in Mainland China, High Debt Ails

Per the Zacks analyst, Hilton Worldwide is likely to benefit from hotel re-openings, increased digital traffic and booking activity across China.

Investments Aid Edison International (EIX), Coronavirus Woes

Per the Zacks analyst, investments enable Edison International to boost its grid safety and customer reliability. Yet, coronavirus impact caused it to incur bad expenses that may hurt its bottom line.

BioMarin (BMRN) Focus on Valrox's Potential Approval

BioMarin's regulatory application for valrox is under review. The Zacks analyst believes the candidate could be transformational, if approved this year.

New Upgrades

eBay (EBAY) Rides on Solid Momentum Across Managed Payments

Per the Zacks analyst, eBay is benefiting from strengthening managed payments offerings which deliver better shopping experience. This in turn is aiding the company's customer momentum.

Leadership Brands to Drive Helen of Troy's (HELE) Top Line

Per the Zacks analyst, product launches, marketing efforts and e-commerce plans for Leadership Brands should keep driving Helen of Troy's sales. Leadership Brands' sales grew 15.7% in fourth quarter.

H&R Block (HRB) Rides on Technology & Operational Excellence

Per the Zacks analyst, prudent investments in technology and operational excellence are helping H&R Block to achieve client, revenue, and earnings growth.

New Downgrades

Rising Costs and Expenses To Hurt Intuit's (INTU) Profit

Per the Zacks analyst, rising costs and expenses owing to higher investments in engineering and marketing is anticipated to hurt Intuit's near-term profitability.

Reinsurance Group (RGA) Hurt by High Claims & Elevated Costs

Per the Zacks Analyst, the company's escalating expenses continue to weigh on its margins. Further, mortality claims are likely to increase due to the COVID-19 pandemic.

Weakness in Foodservice Unit a Woe For Post Holdings (POST)

Per the Zacks analyst, lower demand from foodservice customers due to coronavirus-led restrictions is a worry. Notably, sales in the Foodservice unit fell 2.7% year over year in fiscal second-quarter.

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Wells Fargo Company (WFC) : Free Stock Analysis Report
 
Royal Dutch Shell PLC (RDS.A) : Free Stock Analysis Report
 
Marriott International, Inc. (MAR) : Free Stock Analysis Report
 
BHP Group Limited (BHP) : Free Stock Analysis Report
 
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
Apple Inc. (AAPL) : Free Stock Analysis Report
 
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