Wednesday, August 10, 2022
Zacks Research Daily features top research results from our team of analysts. Today’s Research Daily features new research reports on 16 major stocks, including S&P Global Inc. (SPGI), Sony Group Corporation (SONY) and 3M Company (MMM). These research reports have been handpicked from the approximately 70 reports published today by our team of analysts.
You can see all research reports from today here >>>
S&P Globall Shares have fallen -9.5% over the past year compared to a decline of -8.3% for the broader market, reflecting the data provider’s exposure to an uncertain macro environment. Although the company faces a number of short-term challenges, it is well positioned to take advantage of the growing demand for business information services. Buyouts help innovate, increase differentiated content, and develop new products. Effective management execution has helped it generate strong cash flow which is being used for growth initiatives. Dividend payouts and share buybacks build investor confidence and have a positive impact on earnings per share.
(You can read the full research report on S&P Global here >>>)
sony shares are down -16.4% over the past year against audio-video production industry Zacks’ -19.8% decline. The Zacks analyst believes that due to weak macro conditions, the company has cut its operating profit forecast for fiscal 2022. Operating profit is now expected to fall 8% vs. a decline 3.5% forecast previously.
The company expects the operating margin for the year will likely be impacted by lower operating profit in the G&NS segment. The fierce rivalry and high cost of goods sold are causing concern. However, the first quarter performance benefited from the increase in revenues from the Music and Images segments. It remains focused on the premium segment of the branded goods market to maximize growth.
For fiscal 2022, the company now expects sales to increase by 16% due to higher sales in the Music, Pictures and E&TS segments. Strategic acquisitions and joint ventures bode well for the long term. The company continues to expect sales of 18 million units for its PlayStation 5.
(You can read the full Sony research report here >>>)
3M shares are down -23.2% over the past year against the -20.4% decline in Zacks’ diversified trading services industry. The Zacks analyst believes supply chain disruptions, raw material and logistics cost inflation are weighing on 3M’s operations. Foreign currency headwinds impact company revenue.
The company has cut its 2022 sales and earnings forecast. Due to these headwinds, shares of the company have lost 17% so far this year. However, strong demand in most end markets is supporting 3M’s growth. The company’s pricing actions and restructuring initiatives are supporting its margin performance.
Improvements in the abrasives, electrical markets, roofing granules, automotive aftermarket and industrial adhesives businesses bode well for the company. Strength in the separation and purification business, due to strong demand for biopharmaceutical filtration solutions for COVID-related vaccines, is driving the performance of the Healthcare segment.
(You can read the full 3M research report here >>>)
Other noteworthy reports we’re featuring today include Northrop Grumman Corporation (NOC), Paychex, Inc. (PAYX), and Shopify Inc. (SHOP).
Sheraz Mian
Director of Research
Note: Sheraz Mian leads the equity research department at Zacks and is a well-known expert on overall earnings. He is frequently quoted in the written and electronic press and publishes the weekly Earnings Trends and Revenue overview reports. If you would like to receive an email notification whenever Sheraz publishes a new article, please click here>>>