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Top Analyst Reports for Visa, Procter & Gamble & Infosys

Monday, January 30, 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 Visa Inc. (V), The Procter & Gamble Co. (PG) and Infosys Ltd. (INFY). 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 >>>

Visa’s shares have outperformed the Zacks Financial Transaction Services industry over the past year (+2.3% vs. -8.0%). The company’s numerous buyouts and alliances paved the way for long-term growth and consistently drove its revenues. For fiscal 2023, net revenues are estimated to rise in the high single digits on a reported nominal dollar basis.

Constant investments in technology are solidifying its position in the payments market. A shift in payments to the digital mode is a boon for Visa. The company beat fiscal first-quarter 2023 earnings estimates on the back of steady domestic volumes and a rise in transactions. A strong cash position enables it to boost shareholder value.

However, high operating expenses stress the margins. Ramped-up client incentives will dent the top line. The company's volumes will likely suffer due to the Russia-Ukraine conflict. As such, the stock warrants a cautious stance.

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

Shares of Procter & Gamble have declined -1.6% over the past six months against the Zacks Soap and Cleaning Materials industry’s decline of -2.6%. The company is facing commodity cost inflation, increases in freight costs, and product and packaging investments which threaten margins. The company retained its drab earnings view for fiscal 2023 due to persistent inflation, and higher freight and currency woes.

However, Procter & Gamble posted better-than-expected top and bottom lines for the second consecutive quarter in its fiscal second quarter. The company’s organic sales improved, driven by robust pricing and a favorable mix, along with strength across segments.

Improved productivity amid cost headwinds has also aided the results. Driven by the company’s progress against its plans, management has raised its sales view for fiscal 2023.

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

Shares of Infosys have declined -20.8% over the past year against the Zacks Computers - IT Services industry’s decline of -20.4%. The company is suffering from increasing anti-outsourcing sentiments in certain countries. Higher subcontractor costs and its compensation revision with a higher variable pay and incentives are weighing on margins. Further, unfavorable currency fluctuations remain a major concern.

Nevertheless, Infosys is gaining from large deal wins and fast-growing digital services. Its sustained focus on Agile Digital and artificial intelligence (AI)-driven Core services is a tailwind. Strong demand for its services in cloud, Internet of Things (IoT), cybersecurity, data and analytics are key drivers.

Higher investments by clients in digital transformation, AI and automation are an upside. Solid traction of its CobaltTM cloud portfolio is a positive. According to the Zacks analyst estimates, Infosys’ revenues should grow at a CAGR of 9.6% through fiscal 2023-2025.

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

Other noteworthy reports we are featuring today include The Progressive Corp. (PGR), Block, Inc. (SQ) and Devon Energy Corp. (DVN).

Mark Vickery
Senior Editor

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

Visa (V) Capitalizes on Renewed Agreements, Expenses High

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


Digital Transformation, AI Proliferation Aid Infosys (INFY)

Featured Reports

Progressive's (PGR) Solid Policies in Force Aid, Cat Loss Ail
Per the Zacks analyst, Progressive is set to grow on, solid policies in force, competitive rates and leadership position. However, cat loss exposure inducing underwriting volatility ails.

Solid Cash App Adoption & Square Ecosystem Aid Block (SQ)
Per the Zacks analyst, Block is benefiting from strong Cash App engagement and its growing active customer base. Further, the company's growing momentum across Square Ecosystem remains a positive.

High Margin Assets & Cost Management Aid Devon Energy (DVN)
Per the Zacks analyst Devon's strong production from its high margins assets and efficient cost management will drive performance over the long run.

AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth
The Zacks analyst believes that AbbVie's new drugs, Skyrizi and Rinvoq, are going strong bolstered by approval in new indications. They can drive revenues once Humira loses U.S. exclusivity in 2023.

Cologuard Sales Aid Exact Sciences (EXAS), Stiff Rivalry Ail
The Zacks analyst is impressed with Exact Sciences' growth in legacy Screening business during the third quarter 2022 led by Cologuard volume growth. Yet, stiff rivalry remains a concern.

Solid Performance Across Agility & Reliability Units Aid Flex
Per the Zacks analyst, Flex's performance benefited from strength across the Agility Solutions and Reliability Solutions segments. However, semiconductor shortage and stiff competition are concerns.

Improving Retail Demand to Aid Macerich's (MAC) Leasing
Per the Zacks Analyst, rebounding demand for Macerich's portfolio of premium shopping centers is likely to drive leasing activity in the near term. However, higher e-commerce adoption is a key woe.

New Upgrades

Harley-Davidson (HOG) Rides on Hardwire Strategic Plan
The Zacks analyst is optimistic of Harley-Davidson's 'Hardwire' strategy which aims at profitability through refreshed product offerings and technologies that better align with market trends.

Copa Holdings (CPA) Benefits From Improving Air-Travel Demand
The Zacks Analyst is impressed with the fact that increased air-travel demand is aiding Copa Holdings' top-line performance.

RPC (RES) to Benefit From Increased OilField Activities
Per the Zacks analyst, RPC is well-positioned to benefit from increasing oilfield activities in its industry, as the favorable commodity pricing scenario has driven upstream investments.

New Downgrades

Rising Lease Operating Expenses Hurt Callon Petroleum (CPE)
The Zacks analyst is concerned about Callon Petroleum since increasing lease operating expenses are hurting the upstream energy playe's bottom line.

Higher Supply-Chain Costs Hurt McCormick's (MKC) Margin
Per the Zacks analyst, escalated supply-chain costs are putting pressure on McCormick's gross margin. The company continued to encounter supply-chain hurdles during fiscal fourth quarter.

Inflationary Pressures to Hurt Hasbro's (HAS) Prospects
Per the Zacks analyst, Hasbro's operations are likely to be affected by inflationary pressures and a challenging holiday consumer environment. This and a reduction in global workforce is a concern.

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Devon Energy Corporation (DVN) : Free Stock Analysis Report

Visa Inc. (V) : Free Stock Analysis Report

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

American Noble Gas Inc. (INFY) : Free Stock Analysis Report

The Progressive Corporation (PGR) : Free Stock Analysis Report

Block, Inc. (SQ) : Free Stock Analysis Report

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Zacks Investment Research