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Top Research Reports for Walt Disney, Kimberly-Clark & Barrick Gold

Monday, October 3, 2022

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including The Walt Disney Company (DIS), Kimberly-Clark Corporation (KMB) and Barrick Gold Corporation (GOLD). 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 >>>

Walt Disney shares have underperformed the broader market this year (-39.1% vs. -24.8%) on the back of sentiment shift about the streaming business that had earlier helped the stock move higher. Other issues in the Disney story have been the adverse impact of coronavirus on theme park business, higher programming and production costs at Linear Networks, heavy investments on Disney+, and a leveraged balance sheet.

However, the company is benefitting from the growing popularity of Disney+, owing to a strong content portfolio and a cheaper bundle offering. Availability in the Nordics, Latin America and other Asian territories is helping it expand its user base. Theme Park business is likely to gain from strong demand across both the domestic and international parks.

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

Kimberly-Clark’s shares have declined -10.0% over the past six-month period against the Zacks Consumer Products – Staples industry’s decline of -28.0%. The Zacks analyst believes that Kimberly-Clark has been battling high input costs for a while now. The same persisted in the second quarter of 2022, with operating profit declining due to a rise in input costs to the tune of $405 million. Management expects adjusted operating profit to be down mid-single digit percent during 2022. Key input costs are estimated to escalate $1.4-$1.6 billion in 2022.

Nonetheless, the company has been benefiting from its three growth pillars. These include focus on improving its core business in the developed markets, speeding up growth in the Personal Care segment in developing and emerging markets and enhancing digital and e-commerce capacities. Apart from this, the company’s pricing and saving initiatives have been aiding amid a rising cost environment.

(You can read the full research report on Kimberly-Clark here >>>)

Barrick Gold shares have underperformed the Zacks Mining – Gold industry over the past year (-15.0% vs. -8.6%). The Zacks analyst believes that the company’s higher costs might dent its margins in 2022. Uncertainties surrounding the pandemic may impact demand for gold over the short term. Gold prices are also expected to remain volatile over the near term and are likely to be affected by interest rate hikes in 2022. Weaker copper prices are another concern.

However, the company is expected to gain from progress in key growth projects that are likely to contribute to production. Barrick’s debt-reduction actions are also expected to lower interest expenses. It has a strong liquidity position and is focused on boosting shareholders’ returns by leveraging solid cash flows. Moreover, Barrick’s merger with Randgold and joint venture with Newmont provides additional upsides.

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

Other noteworthy reports we are featuring today include Teck Resources Limited (TECK), FactSet Research Systems Inc. (FDS), and American Financial Group, Inc. (AFG).

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

Disney+ Growth & Revival of Parks Business Aids Disney (DIS)

Kimberly-Clark (KMB) Benefits From Solid Cost-Saving Efforts

Debt Reductions, Growth Projects Aid Barrick (GOLD)

Featured Reports

Novavax's (NVAX) Dependence on COVID-19 Vaccine Sales A Woe
While Novavax's COVID-19 vaccine exhibits superior immune protection against the virus, the Zacks analyst believes that the delayed commercial launch has severely impacted the vaccine's sales.

CUSIP Global Buyout Aids FactSet (FDS), Low Liquidity Ails
Per the Zacks analyst, CUSIP Global Services' acquisition will enhance FactSet's position in the global capital markets. However, its decreasing current ratio (a measure of liquidity) is a headwind.

Solid Expansion Projects to Aid Teck (TECK) Amid High Costs
Per the Zacks analyst, Teck Resources is poised well to gain its ongoing expansion projects project pipeline and innovation-driven efficiency program RACE21 despite the inflationary cost pressures.

High Demand & Online Strength Aids Nordstrom's (JWN) Top Line
Per the Zacks analyst, Nordstrom has been gaining from solid demand for apparel and footwear as well as robust digital traffic in both Nordstrom and Nordstrom Rack. As a result, sales grew 12% in Q2.

F5 Networks (FFIV) Rides on Firm Growth in Software Business
Per the Zacks analyst, F5 is benefiting from strong growth in software, driven by security offerings, such as web application firewall, bot defense and mitigation products.

New Upgrades

Sprouts Farmers' (SFM) Omnichannel Offering to Propel Sales
Per the Zacks analyst, Sprouts Farmers' assortment of better-for-you products, and focus on providing hassle-free shopping through omnichannel offering bode well.

Solid Top Line, Strong Cash Flows Aid American Financial (AFG)
Per the Zacks analyst, its strong revenues driven by higher net investment income, net earned premiums have led to significant growth. Moreover, its healthy balance sheet should drive long-term growth

New Downgrades

Cost Inflation, Operating Inefficiencies Hurt Gentex (GNTX)
Per the Zacks analyst, manufacturing bottlenecks from soaring costs of raw materials are likely to mar Gentex's near-term margins. Also, operational inefficiencies ail the firm.

Low Volumes & High Costs to Hurt Packaging Corporation (PKG)
The Zacks analyst is concerned that lower sales volumes at the Paper segment due to scheduled outages at its mills along with increased input costs will dent Packaging Corporation's results.

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
KimberlyClark Corporation (KMB) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
FactSet Research Systems Inc. (FDS) : Free Stock Analysis Report
American Financial Group, Inc. (AFG) : Free Stock Analysis Report
Barrick Gold Corporation (GOLD) : Free Stock Analysis Report
Teck Resources Ltd (TECK) : Free Stock Analysis Report
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