For Immediate Release
Chicago, IL – June 01, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: IBM IBM, The Goldman Sachs Group, Inc. GS, Diageo plc DEO, ServiceNow, Inc. NOW and The Progressive Corp. PGR
Here are highlights from Tuesday’s Analyst Blog:
Top Research Reports for IBM, Goldman Sachs and Diageo
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 IBM, The Goldman Sachs Group, Inc. and Diageo plc. 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 >>>
IBM Shares have outperformed the Zacks Computer – Integrated Systems industry over the past year (+5.6% vs. -3.3%), with strong demand for hybrid cloud and AI, driving growth in Software and Consulting. Synergies from the Red Hat buyout are bolstering its competitive position in the hybrid cloud market.
It is likely to gain from the robust adoption and broad-based availability of IBM Blockchain World Wire — a blockchain-driven global payments network aimed at accelerating and optimizing cross-border payments. A combination of a better business mix, improving operating leverage and higher investments will likely drive future growth opportunities.
However, stiff competition in the cloud computing market from the likes of Amazon Web Services and Microsoft Azure remains an overhang. Higher debt levels amid extensive restructuring activities pose a concern. High integration risk from continuous acquisition spree is another headwind.
Goldman Sachs shares have declined -13.2% over the past year against the Zacks Financial – Investment Bank industry’s decline of -14.1%. The Zacks analyst believes that any normalization of trading business is likely to hurt the Global Market segment’s revenues in the upcoming period. Goldman’s persistently rising expense base will hinder the bottom line. Also, legal hassles and higher dependence on overseas revenues are worrisome.
However, the company’s strength in wealth management and consumer banking businesses are tailwinds, As part of its inorganic moves, it will acquire robo-advisor NextCapital Group. Robust client engagement, solid position in announced and completed mergers and acquisitions (M&As) globally and investment banking (IB) backlog are likely to keep driving its IB revenues.
Shares of Diageo have outperformed the Beverages – Alcohol industry over the past two years (+36.4% vs. +25.1%). The company’s continued recovery in the on-trade channel, strong consumer demand in the off-trade and market share gains, which also aided the company’s first-half fiscal 2022 performance. The company witnessed sales, operating margin and earnings growth in first-half fiscal 2021 driven by organic sales growth across all regions. Strong recovery in gross margin and operating cost leverage along with higher marketing investments aided organic operating margin growth.
Moreover, margin growth was driven by supply productivity savings and price increases, which more than offset the higher cost inflation. It provided a decent view for fiscal 2022, with organic sales momentum likely to continue in the second half of fiscal 2022. However, continued inflationary pressures and currency headwinds are concerning.
Other noteworthy reports we are featuring today include ServiceNow, Inc., and The Progressive Corp..
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