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The Zacks Analyst Blog highlights Procter & Gamble, applied materials, automated computing, microchip technology and Fastenal
For Immediate Release
Chicago, IL – March 8, 2023 – Zacks.com announces the list of stocks featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events affecting stocks and the financial markets. Stocks recently featured on the blog include: The Procter & Gamble Co. PG, Applied Materials, Inc. AMAT, Automatic Data Processing, Inc. ADP, Microchip Technology Inc. MCHP, and Fastenal Co. FAST.
Here are the highlights from Tuesday’s analyst blog:
Top analyst reports for Procter & Gamble, Applied Materials and ADP
The Zacks Research Daily presents the best research from our team of analysts. Today’s Research Daily features new research reports on 16 major stocks, including The Procter & Gamble Co., Applied Materials, Inc. and Automatic Data Processing, Inc. These research reports have been carefully selected from the approximately 70 reports published by our team of analysts today .
You can All current research reports can be found here >>>
shares of Procter & Gamble has performed in line with the broader market over the past year (-4.7% vs. -4.5% for the S&P 500 Index) but has lagged this year (-7.8% vs. +5.5%). Drivers of this performance variance are trends in market sentiment, which appear to have moved away from the relatively safer parts of the market, as represented by P&G.
The company posted better-than-expected sales and earnings for the second consecutive quarter. Organic sales improved, driven by robust pricing and a favorable mix and strength across all segments.
Improved productivity amid cost headwinds also contributed to the results. Fueled by the company’s progress toward its plans, management has raised its revenue outlook for fiscal 2023.
However, Procter & Gamble has seen raw material cost inflation, rising freight costs, product and packaging investments, and other impacts that squeeze margins. Also, the company maintained its dismal fiscal 2023 earnings outlook due to ongoing inflation, higher freight and currency issues.
(You can Read the full Procter & Gamble research report here >>>)
Applied Materials Equities have slightly outperformed the Zacks Semiconductor Equipment – Wafer industry (+26.3% vs. +24.4%) over the past six months. The company is seeing strong momentum in Semiconductor Systems and Applied Global Services remains positive. Solid demand for semiconductors drove sales growth. In addition, increasing bookings for multi-year subscriptions contributed well.
In particular, demand for foundry logic is expected to remain strong due to the increasing need for specialty nodes in the automotive, energy, 5G deployment, IoT, communications and imaging markets. The growing demand for semiconductor and wafer fab equipment is also a tailwind.
However, pandemic-related supply chain restrictions and market uncertainties are a major headwind. Inertia in the display segment remains an issue. By our estimate, the segment is expected to register a 54.7% year-on-year decline in fiscal 2023.
(You can Read the full Applied Materials research report here >>>)
shares of Automatic data processing have outperformed the Zacks outsourcing industry over the past year (+9.8% vs. +4.8%). The company maintains a dominant position in the human capital management market through strategic acquisitions such as Celergo, WorkMarket, Global Cash Card and The Marcus Buckingham Company.
It has a strong business model, high recurring revenue, good margins, robust customer retention, and low capital expenditures. Additionally, it continues to innovate, improve operations and invest in its ongoing transformation efforts.
However, ADP faces significant competition in each of its product lines. Failure to stay technologically up-to-date could reduce demand for its solutions and services. Rising spending from investments in transformation efforts remains a concern. The high level of debt remains a problem.
(You can Read the full research report on Applied Computing here >>>)
Other notable reports we are sharing today are Microchip Technology Inc. and Fastenal Co.
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Past performance is no guarantee of future results. The potential for loss is inherent in every investment. This material is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether an investment is suitable for a is suitable for certain investors. It should not be assumed that investments in any security, company, sector or market identified and described have been or will be profitable. All information is current at the time of publication and is subject to change without notice. Any views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or investment management activities for securities. These returns are from hypothetical portfolios composed of Zacks rank = 1 stocks rebalanced monthly excluding transaction costs. These are not actual stock portfolio returns. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information on the performance figures presented in this press release.
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Automatic Data Processing, Inc. (ADP): Free Stock Research Report
Procter & Gamble Company (The) (PG): Free Stock Research Report
Fastenal Company (FAST): Free Stock Research Report
Microchip Technology Incorporated (MCHP) Free Stock Research Report
Applied Materials, Inc. (AMAT): Free Stock Research Report
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