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Top Analyst Reports for Coca-Cola, AT&T & Royal Dutch Shell

Zacks.com logo Zacks.com 5/3/2021

Monday, May 03, 2021

 

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 The Coca-Cola Company (KO), AT&T Inc. (T), and Royal Dutch Shell plc (RDS.A). 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 gained +2.2% in the past one month against the Zacks Beverages - Soft drinks industry’s gain of +1.9%. The Zacks analyst believes that shares of Coca-Cola outpaced the industry in the past month, thanks to its robust earnings performance that continued in fourth-quarter 2020. This marked the fifth straight quarter of earnings beat. Gains from aggressive cost management aided margins. Although the top line lagged estimates and declined on a year-over-year basis, the company’s top line reflected improved trends compared with prior quarters.

 

However, continued pressures in the away-from-home channel, which account for nearly half of its revenues, affected revenues. Also, gains in the global value share in NARTD beverages was offset by negative channel mix.

 

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

 

Shares of AT&T have outperformed the Zacks Wireless National industry over the last six-month period (+16.2% vs. +9.8%). The Zacks analyst believes that AT&T is further well poised to gain from a solid subscriber growth on the back of a resilient customer-centric business model, driven by diligent execution of operational plans.

 

The company expects to continue investing in key areas while adjusting its business according to the evolving market scenario to fuel long-term growth with healthy dividend payment. It is likely to benefit from the streaming services of HBO Max, integrated fiber expansion and nationwide 5G deployment.

 

However, the company is facing a steady decline in linear TV subscribers, legacy services and wireline division. As it tries to woo customers with discounts and freebies, margins tend to fall. Spectrum crisis in a saturated wireless market and continued cord-cutting remain major headwind.

 

(You can read the full research report on AT&T here >>>)

 

Shares of Royal Dutch Shell shares have underperformed the Zacks Oil & Gas Integrated industry over the year-to-date period (+8.1% vs +19.0%). However, the Zacks analyst believes that the company is poised for capital appreciation based on a slew of tailwinds. Shell’s trading business has been instrumental in helping the supermajor partly cushion the impact of the coronavirus-induced oil price slump.

 

Further, the company’s position as a key supplier of liquefied natural gas should benefit its long-term cash flow growth on the back of attractive growth opportunities. It is also making solid progress toward the transition to a renewable energy-focused future and pledged to attain zero-net emissions by 2050. Meanwhile, the firm’s high investment grade rating translates into low borrowing rates. Consequently, Shell is viewed a preferred energy major to own now.

 

(You can read the full research report on Royal Dutch Shell here >>>)

 

Other noteworthy reports we are featuring today include Facebook, Inc. (FB), General Electric Company (GE) and Colgate-Palmolive Company (CL).

 

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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

Investment & Innovation Mirror Coca-Cola's (KO) Core Strength

AT&T (T) Rides on 5G Focus, Solid Fiber & HBO Max Traction

Shell (RDS.A) to Benefit from LNG Demand Growth

Featured Reports

Investments Aids Northrop (NOC), High Operating Expenses Hurt

Per the Zacks Analyst, Northrop Grumman's regular investments in growth projects bolsters its future prospects.

Olin (OLN) Gains on IT Project, Lake City Contract

Per the Zacks analyst, Olin will gain from cost benefits from its investment in the IT project. The Lake City U.S. Army ammunition contract should also drive sales of its Winchester segment.

Strategic Buyouts Aid LPL Financial (LPLA), High Costs Ails

Per the Zacks analyst, LPL Financial's efforts to expand through strategic buyouts will likely aid financials and reflect a solid balance sheet.

Portfolio Changes to Aid General Electric (GE), Woes Persist

Per the Zacks analyst, General Electric (GE) is poised to gain from its portfolio restructuring actions in the quarters ahead, helping it become an industrial giant.

Expanding User Base, Instagram Strength Aid Facebook (FB)

Per the Zacks analyst, Facebook is benefiting from a strengthening user base. Moreover, improving engagement levels for Instagram, Messenger and Whatsapp bode well.

Skyworks (SWKS) Banks on 5G Product Suite Amid Competition

Per Zacks analyst, growing clout of Skyworks' 5G connectivity and Wi-Fi 6 solutions are positives. However, stiff competition from peers like Qorvo in radio frequency market is a major headwind.

Colgate's (CL) Robust Pricing & Productivity Aid Margins

Per the Zacks analyst, Colgate has been witnessing pricing and productivity gains across all businesses on its premiumization and revenue growth management initiatives, which are aiding gross margin.

New Upgrades

Robust Off-Premise Sales Aid Cheesecake Factory (CAKE)

Per the Zacks analyst, Cheesecake will continue to benefit from robust off-premise sales as well as various sales building efforts like menu-innovation and advancement of digital capabilities.

Solid Commercial Lines Business Aids Selective Insurance (SIGI)

Per the Zacks analyst, Selective Insurance is set to grow on rising premiums aided by solid renewal pure pricing, high retention and new business growth in Commercial Lines and Excess and Supply Lines

C.H. Robinson (CHRW) Benefits From Improving Volumes

Per the Zacks analyst, increased volumes and higher pricing, thanks to improving freight market conditions, are driving C.H. Robinson's growth.

New Downgrades

Lower Gross Margin Hurts FormFactor's (FORM) Prospects

Per the analyst, FormFactor's gross margin expansion is expected to suffer higher raw material costs in the near term. Also, less favorable product mix is a concern.

Heavy Dependence on the Omnipod System Ails Insulet (PODD)

The Zacks analyst is worried about Insulet's heavy reliance on the performance of its lead product, Omnipod System. A stiff competitive landscape is an added issue.

COVID-19 Vaccine Production Halt Hits Emergent's (EBS) Outlook

Per the Zacks analyst, suspension of production at Emergent's Bayview facility following manufacturing of faulty doses of J&J's COVID-19 vaccine led to lowering of contract revenues guidance for 2021.

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