Best analyst reports for Lowe’s, Southern Company and Freeport-McMoRan

Thursday, January 13, 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 Lowe’s Companies, Inc. (LOW), The Southern Company (SO) and Freeport-McMoRan Inc. (FCX). These research reports have been handpicked from the approximately 70 reports published today by our team of analysts.

You can see all today’s research reports here >>>

Lowe’s shares have gained +15.8% over the past three months, roughly in line with Zacks Building Products – Retail’s +15.3% gain. The Zacks analyst believes the company remains well positioned to capitalize on demand from the home improvement market, supported by investments in technology, the commodity category and strength in the Pro business.

Lowe’s reported strong third-quarter fiscal 2021 results, in which both the high and low topped the Zacks consensus estimate and rose year-over-year. Results benefited from the good execution of strategies, including the Total Home strategy. The Total Home strategy resonated well with Pro and DIY customers. The focus on productivity has helped the company increase its margins.

Additionally, Lowes.com sales increased 25% in the third fiscal quarter. Management is committed to improving Pro offerings, growing the company’s market share and increasing operating margin.

(You can read the full research report on Lowe’s here >>>)

Shares of Southern Company outperformed the Zacks Utility – Electric Power industry over the past year (+14.8% vs. +6.7%). The Zacks analyst believes that by taking advantage of the demographics of its operating territories, such as healthy population and employment growth, Southern Company has gradually increased its customer base. With good rate base growth and constructive regulation, the utility is expected to deliver steady growth in earnings and dividends over the next few years.

However, its high leverage, as well as ongoing time and cost overrun issues on its Vogtle project, are major overhangs. While the power utility holding company’s 60.9% debt ratio limits financial flexibility, its $25 billion Vogtle nuclear plant has already exceeded budget and is years behind schedule. Therefore, Southern Company justifies a cautious attitude on the part of investors.

(You can read the full Southern Company research report here >>>)

Freeport-McMoRan shares have gained +21.6% over the past three months against the industry’s -1.4% decline Zacks Mining – Non Ferrous. The Company conducts exploration activities near existing mines to expand reserves. The Zacks analyst believes the company should benefit from progress in exploration activities which will increase production capacity.

Freeport’s Lone Star project offers additional benefits. The company is also well positioned to benefit from automotive electrification, which is positive for copper as electric vehicles are copper-intensive. The rise in copper prices should also support its margins. The company’s efforts to reduce its debt are also encouraging.

However, the company is facing headwinds due to rising energy and freight costs. Higher costs could hurt its margins. Another concern is the recent weakness in copper demand in China amid slowing economic growth.

(You can read the full research report on Freeport-McMoRan here >>>)

Other noteworthy reports we feature today include Netflix, Inc. (NFLX), Cenovus Energy Inc. (CVE) and Molina Healthcare, Inc. (MOH).

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 Earnings Overview reports. If you would like to receive an email notification whenever Sheraz publishes a new article, please click here>>>

To read today

Lowe’s (LOW) Omnichannel Efforts and Professional Business Bode Well

Southern Company (SO) driven by the regulated growth of its customer base

Exploration progress, debt reduction to help Freeport (FCX)

Featured Reports

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New upgrades

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New downgrades

Competition for Halozyme’s partner drugs (HALO) on the rise
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Cost and volume issues hurt prospects for Canadian Pacific (CP)
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Click to get this free report

Southern Company The (SO): Free Stock Analysis Report

Netflix, Inc. (NFLX): Free Stock Analysis Report

FreeportMcMoRan Inc. (FCX): Free Stock Analysis Report

Lowe’s Companies, Inc. (LOW): Free Stock Analysis Report

Molina Healthcare, Inc (MOH): Free Stock Analysis Report

Cenovus Energy Inc (CVE): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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