Thursday, April 6, 2023

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 15 major stocks, including The Procter & Gamble Co. (PG), PepsiCo, Inc. (PEP) and Bank of America Corp. (BAC). 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 Procter & Gamble have outperformed the Zacks Soap and Cleaning Materials industry over the past six months (+23.4% vs. +22.4%). The company’s robust surprise trend, which continued in fiscal Q2 2023, bodes well. Procter & Gamble posted better-than-expected top and bottom lines for the second consecutive quarter.

The company’s organic sales improved, driven by robust pricing and a favorable mix, along with strength across segments. Improved productivity amid cost headwinds has also aided the results. Driven by the company’s progress against its plans, management has raised its sales view for fiscal 2023.

However, Procter & Gamble has been witnessing commodity cost inflation, increases in freight costs, product and packaging investments and other impacts that have hurt margins. Also, the company retained its drab earnings view for fiscal 2023 due to persistence of inflation, higher freight and currency woes.

(You can read the full research report on Procter & Gamble here >>>)

PepsiCo’s shares have gained +9.3% over the past year against the Zacks Beverages - Soft drinks industry’s gain of +11.2%. The company marked the 18th straight quarter of positive revenue surprises and its fourth consecutive earnings beat. The company benefits from the resilience and strength of global beverage and convenient food businesses.

It expects to benefit by delivering convenience, variety and value proposition to customers through its brands. It outlined its view for 2023. However, PepsiCo witnessed margin pressures in the fourth quarter driven by impacts of supply-chain disruptions and inflationary labor, transportation and commodity costs. Adverse currency rates also remain headwinds.

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

Shares of Bank of America have underperformed the Zacks Banks - Major Regional industry over the past year (-28.1% vs. -17.5%). The company’s over-dependence on trading revenues for fee income is concerning. The volatile nature of the capital markets will adversely impact non-interest income performance.

A tough operating backdrop will lead to increase in provisions, with we projecting a substantial jump in the metric this year. However, higher interest rates and decent loan demand are expected to keep aiding the company’s net interest income (NII).

Likewise, the company’s net interest yield will continue expanding in the near-term. Also, opening of new financial centers, enhancement in digital capabilities and prudent cost management efforts are expected to keep aiding its financials.

(You can read the full research report on Bank of America here >>>)

Other noteworthy reports we are featuring today include Verizon Communications Inc. (VZ), Medtronic plc (MDT) and Blackstone Inc. (BX).

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>>>