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Top Research Reports for Procter & Gamble, Home Depot, Danaher & Others

Tuesday, September 26, 2023

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 Procter & Gamble Company (PG), The Home Depot, Inc. (HD) and Danaher Corporation (DHR). 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 >>>

Procter & Gamble shares have outperformed the Zacks Soap and Cleaning Materials industry over the past six months (+4.2% vs. +2.0%). The company continued its robust top and bottom-line surprise trend for the fourth consecutive quarter in the fourth quarter of fiscal 2023. Also, sales and earnings grew year over year.

Procter & Gamble’s organic sales grew, driven by robust pricing and a favorable mix, along with strength across segments. It has been focused on productivity and cost-saving plans to boost margins. Consequently, management has provided an optimistic view for fiscal 2024.

However, the company has been witnessing supply-chain issues, higher SG&A costs, higher transportation costs, geopolitical challenges, currency headwinds and rising inflation. Procter & Gamble’s significant international presence exposes it to foreign currency risks, which have been weighing on the company’s performance.

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

Shares of Home Depot have gained +16.7% over the past year against the Zacks Building Products - Retail industry’s gain of +20%. The company has been witnessing significant benefits from the execution of the “One Home Depot” investment plan, which focuses on expanding supply chain facilities, technology investments and enhancement to the digital experience.

The interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic for the past few quarters. The company remains on track with its strategic investments to build a Pro ecosystem.

However, Home Depot's top and bottom-lines declined year over year in second-quarter fiscal 2023. Results were impacted by a deflation in lumber prices and pressures in several big-ticket discretionary categories. HD retained its conservative view for fiscal 2023.

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

Shares of Danaher have gained +1.3% over the past six months against the Zacks Diversified Operations industry’s gain of +4.2%. Improving supply chains and strong price realization augur well for Danaher. The company’s Life Sciences segment is benefiting from healthy demand across the life science, research, academic and applied markets.

The Danaher Business System (DBS) initiatives are supporting the company’s margins. DHR’s commitment to return value to shareholders is encouraging. However, the company is plagued by weakness in the Biotechnology and Diagnostics segments due to a decrease in the sale of COVID-related products.

Given Danaher’s significant international exposure, foreign currency headwinds are affecting its top line. The escalating cost of sales due to raw material cost inflation poses a threat to the company’s bottom line.

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

Other noteworthy reports we are featuring today include Zoetis Inc. (ZTS), Duke Energy Corporation (DUK) and Itaú Unibanco Holding S.A. (ITUB).

Director of Research

Sheraz Mian

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

P&G's (PG) Strong Cash Generation to Attract Investors

Home Depot's (HD) Interconnected Strategy to Boost Sales

Danaher (DHR) Rides on Life Sciences Segment Strength

Featured Reports

Pet-Care Products Boost Zoetis (ZTS), Disease Outbreaks A Woe
Per the Zacks Analyst, the companion animal product sales are expected to boost Zoetis in the quarters ahead. Potential supply challenges and disease outbreaks could, however, hurt prospects.

Solid Investments Aid Duke Energy (DUK), Weak Solvency Woes
Per the Zacks analyst, Duke Energy's investment in infrastructure and expansion projects tend to boost its long-term growth prospects. However, its weak solvency position remains a bottleneck.

Buyouts to Support Itau Unibanco (ITUB), High Expenses Ail
Per the Zacks analyst, Itau Unibanco is aided by a strong network franchise and a rise in revenues from commissions and fees. Yet, increasing costs and a deterioration in its credit quality are woes.

Hewlett Packard (HPE) Benefits From Spurt in Aruba Services
Per the Zacks analyst, a strong uptick in Aruba Services is driving Hewlett Packard's Intelligent Edge segment, which in turn, helps sustain its supremacy in the market with high growth opportunity.

Aspen (AZPN) to Gain From Product Portfolio & Acquisitions
Per the Zacks analyst, Aspen will benefit from increased demand across all business segment and frequent product launches. Also, synergies from acquisition is a tailwind.

Kinsale Capital (KNSL) Rides on High Premiums Amid High Costs
Per the Zacks analyst, a strong U.S. excess and surplus lines market footprint and high retention rates position its premiums well for growth. However, high costs have been weighing on margins.

Operational Efficiency, High Selling Price Aid Silgan (SLGN)
Per the Zacks analyst, higher average selling prices is benefiting the company. Its disciplined capital allocation model and efforts to improve operational performance is also aiding growth.

New Upgrades

Range Resources (RRC) Banks on Prolific Appalachia Resources
Per the Zacks analyst, Range Resources will benefit from its diversified asset portfolio spread between low-risk, long reserve-life Appalachian assets and low breakeven Marcellus inventory.

LendingTree (TREE) Rides on Business Model, Inorganic Growth
Per the Zacks analyst, flexible business model and diversified non-mortgage product offerings will likely support LendingTree's top-line growth. Its inorganic growth initiatives are commendable.

Product Portfolio & Expansion Plans Aid JAKKS Pacific (JAKK)
Per the Zacks analyst, increased focus on strategic acquisitions and licensing partnerships, reflecting diversified product portfolio, aid JAKKS Pacific. Also, its expansion plans bode well.

New Downgrades

Increasing Expenses and Labor Competition Hurt ABM
ABM's operating expenses have grown yearly due to labor shortage, rising wage, & fierce labor market competition, potentially causing higher costs like increased overtime & reliance on temporary staff

Macroeconomic Volatility, Stiff Competition Ail Avanos (AVNS)
The Zacks analyst is worried about Avanos' operation in a tough competitive space and a global volatile macroeconomic environment.

Dependency on Reimbursement A Concern for ShockWave (SWAV)
Per the Zacks analyst, reimbursement is a key driver for ShockWave's sales. The company's Breakthrough Device designation for Coronary IVL is set to expire in 2024, that may impact reimbursements.

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

Duke Energy Corporation (DUK) : Free Stock Analysis Report

Procter & Gamble Company (The) (PG) : Free Stock Analysis Report

Danaher Corporation (DHR) : Free Stock Analysis Report

The Home Depot, Inc. (HD) : Free Stock Analysis Report

Itau Unibanco Holding S.A. (ITUB) : Free Stock Analysis Report

Zoetis Inc. (ZTS) : Free Stock Analysis Report

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Zacks Investment Research