Wednesday, January 8, 2025
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 Amazon.com, Inc. (AMZN), The Procter & Gamble Co. (PG) and Sony Group Corp. (SONY), as well as a micro-cap stock The Monarch Cement Co. (MCEM). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
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 >>>
Amazon.com’s shares have outperformed the Zacks Internet - Commerce industry over the past year (+47.6% vs. +43.8%). The company is gaining on solid Prime momentum owing to ultrafast delivery services and strong content portfolio. Strengthening relationship with third-party sellers is a positive. Growing adoption of AWS services portfolio is aiding AMZN’s cloud dominance.
Robust advertising business is also contributing well. Amazon’s strong global presence remains a key growth driver. Deepening focus on generative AI is a major plus. Also, improving Alexa skills along with robust smart home products offerings are tailwinds. Growing capabilities in grocery, pharmacy, healthcare and autonomous driving are other positives.
The company issued positive Q4 2024 guidance fueling investor enthusiasm. The Zacks analyst expect 2024 net sales to increase 10.7% from 2023. However, macroeconomic challenges remain and rising transportation and fulfillment center costs are concerns.
(You can read the full research report on Amazon.com here >>>)
Shares of Procter & Gamble have outperformed the Zacks Consumer Products - Staples industry over the past year (+8.1% vs. +5.4%). The company has been gaining from a strategy that focuses on sustainability and adaptability, responding to the evolving demands of consumers and society. It has been focused on productivity and cost-saving plans to boost margins.
This led to the bottom line beating the consensus mark for the ninth consecutive quarter in the first-quarter of fiscal 2025. PG reiterated its view for fiscal 2025. PG estimates organic sales to grow 3-5% for the fiscal year versus our estimate of a 3.1% growth.
However, PG has been witnessing headwinds related to the market issues in Greater China, geopolitical tensions and financial impacts from currency volatility. PG’s fiscal 2025 EPS view includes an after-tax headwind of $200 million related to unfavorable commodity costs and adverse currency.
(You can read the full research report on Procter & Gamble here >>>)
Sony’s shares have outperformed the Zacks Audio Video Production industry over the past year (+11.3% vs. +11.2%). The company is well-positioned to gain from strength across G&NS, Music and I&SS units amid softness in the financial services unit. The G&NS unit is benefiting from favorable forex impact, higher sales from network services (PlayStation Plus) and rising sales of non-first-party titles.
Momentum in recorded music and music publishing sales is aiding the Music unit’s performance. Steady growth in operating income is a plus. It has revised its revenue outlook for fiscal 2024 from ¥12,610 billion projected earlier to ¥12,710 billion due to the strengthening of the G&NS unit.
Lower hardware sales and stiff rivalry are concerns. Demand for mobile sensors is likely to be affected due to changes in the production plan of a key customer. For fiscal 2024, sales for the I&SS unit are projected to be ¥1,770 billion.
(You can read the full research report on Sony here >>>)
Shares of Monarch Cement’s have outperformed the Zacks Building Products - Concrete and Aggregates industry over the past year (+45.1% vs. +7.1%). This microcap company with market capitalization of $802.06 million reported strong financial results for the nine months ended Sept. 30, 2024, with net sales increasing 4% year over year to $202.48 million and gross profit rising 12% to $74.73 million, driven by effective pricing and robust demand in Kansas, Missouri and Iowa.
The cement business contributed $136.06 million to net sales, reflecting operational excellence. With a $2.50-per-share dividend in fourth-quarter 2024 and $46.55 million in operating cash flow, Monarch Cement shows financial strength. Retained earnings grew 14.5% to $373.25 million and stockholders' equity rose 14.2% to $381.40 million.
Total assets reached $428.32 million, with $59.01 million in cash reserves and no debt on its $15-million credit facility. Geographic and business diversification, long-term resources and the trusted "MONARCH" brand position the company as a resilient industry leader.
(You can read the full research report on Monarch Cement here >>>)
Other noteworthy reports we are featuring today include Axon Enterprise, Inc. (AXON), Pembina Pipeline Corp. (PBA) and The Cooper Companies, Inc. (COO).
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
Prime Momentum & Growing AWS Adoption Benefit Amazon (AMZN)
P&G's (PG) Productivity & Cost Savings Plan to Aid Margins
Solid Momentum in Music and G&NS Segment Sales Benefit SONY
Featured Reports
Pembina (PBA) to Gain from Canada's Energy Infrastructure Gap
The Zacks analysts believe that the infrastructure shortfall in Canada presents growth opportunities for Pembina Pipeline, with C$4 billion in projects, but its C$11.2 billion debt raises caution.
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.
Trading, IB to Aid Jefferies (JEF) Revenues, High Costs Ail
Per the Zacks analyst, a solid IB business performance, strategic JVs and partnerships and a strong balance sheet position will aid Jefferies. However, a steady rise in expenses is a concern.
Solid In-force Business Aids Reinsurance Group (RGA)
Per the Zacks analyst, Reinsurance Group is set to benefit from better pricing and expanding business in the pension risk transfer market. Solid in-force business ensures predictable long-term earning
Growing Solar Market Aids Enphase (ENPH) Amid Increasing Tariffs
Per the Zacks analyst, Enphase Energy is likely to benefit from the expanding solar market. Yet trade tensions between the United States and China have led to increased tariffs and trade restrictions.
Knight-Swift (KNX) Strong on Dividends Amid Cost Woes
The Zacks analyst is concerned about the escalated operating expenses. Efforts to reward shareholders, however, bode well for the company.
Robust Same-Shack Sales Aid Shake Shack's (SHAK) Performance
Per the Zacks analyst, Shake Shack benefits from robust same-shack sales, digital initiatives and unit expansion. Also, focus on menu innovation and marketing strategies bode well.
New Upgrades
Solid Momentum in TASER Segment to Benefit Axon Enterprise
Per the Zacks analyst, Axon Enterprise's TASER segment is driven by robust demand for TASER devices and higher cartridge revenue. Also, accretive acquisitions bode well for the company.
Strong Demand for Key Drugs Drive BioMarin's (BMRN) Sales
While BioMarin's key drugs like Vimzim and Naglazyme continue to drive sales, the Zacks Analyst is encouraged by rapid uptake for dwarfism drug Voxzogo which has opened up a new sales opportunity.
Digitalization, Cost Saving Efforts Aid DXC Technology (DXC)
Per the Zacks analyst, DXC is benefiting from ongoing digital transformations. Cost-saving initiatives, including streamlining the workforce and real estate consolidation, is boosting profitability.
New Downgrades
Low Iron Ore Prices & High Costs Hurt National Steel (SID)
The Zacks analyst is concerned that the recent downtrend in iron ore prices and higher costs for raw materials and fuel will weigh on National Steel's margins.
Escalated SG&A Costs Hurt Inter Parfums' (IPAR) Performance
Per the Zacks analyst, Inter Parfums is seeing higher SG&A costs. In Q3 SG&A expenses rose 11.7% due to higher advertising and promotion expenses.
AT&T (T) Plagued by Wargin Woes, Stifling Competition
Per the Zacks analyst, AT&T is likely to be plagued by intensifying competition in a highly saturated wireless market and depleting margins due to high infrastructure investments and promotions.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
The Cooper Companies, Inc. (COO) : Free Stock Analysis Report
Pembina Pipeline Corp. (PBA) : Free Stock Analysis Report
Axon Enterprise, Inc (AXON) : Free Stock Analysis Report
The Monarch Cement Co. (MCEM): Free Stock Analysis Report
Sony Corporation (SONY) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
