Wednesday, September 22, 2016
Today's Research Daily features new research reports on 16 major stocks, including FedEx (NYSE:FDX), NIKE (NKE) and Yum! Brands (NYSE:YUM). These reports have been handpicked from the roughly 70 research reports issued by our analyst team today. You can see the complete list of research reports issued today here >>>
FedEx shares jumped in response to the strong quarterly report where they beat estimates and raised guidance despite subdued commentary about the macro backdrop. Strong sales at the company’s express, ground and freight divisions as well as the inclusion of results of TNT Express boosted the top line. While management needs to provide more details about the TNT acquisition, but the Zacks analyst likes the purchase since it significantly expands FedEx’s scale of operations, particularly in Europe. These results show that the integration process is off to a promising start, but one can easily envision bumps over the coming quarters. The ecommerce leverage is the most important aspect of the FedEx story. (You can read the full research report on FedEx here>>)
NIKE’s shares have lagged the broader market this year on growing competition in the space from Under Armour and Adidas (DE:ADSGN). While a strong performer from the bottom line perspective, Nike’s top line has been missing estimates for quite some time due to adverse currency movements. Evidently, the company expects lingering currency woes to hurt revenues in first-half fiscal 2017. However, the analyst likes Nike’s customer-centric approach, innovative products and strong portfolio. This, along with the desire for increasing its global footprint, popularity and market share demonstrates its growth appetite. You can read the full research report on NIKE here>>)
Yum! Brands' continued momentum (the stock is up 22% year-to-date) reflects its robust performance in the domestic market and many key international markets. The analyst likes the company’s efforts to capitalize on high-growth emerging markets. Yum! has raised its profit outlook – for the second time this year -- mainly encouraged by strong first-half results and the current profitability trends in China. However, a slowdown in some of the key emerging markets, negative currency translation along with intense competition raises concern. (You can read the full research report on Yum! Brands here>>)
Other noteworthy reports we are featuring today include Adobe (ADBE), JPMorgan (NYSE:JPM) and Pepsi (PEP).
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You can find all of today's stock research reports here>>
Sheraz Mian
Director of Research
Note: If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Featured Reports
Comcast (NASDAQ:CMCSA) to Enter the Wireless Sector
The Zacks analyst believes that Comcast's entry into the wireless services bodes well for the company's diversified business model.
CarMax (NYSE:KMX) Posts In-Line Q2 Earnings, Misses Revenues
While CarMax's focus on the used-vehicle market and aggressive store expansion should help it outperform peers, weaknesses in other sales and revenues as well as the CAF business are concerns.
JPMorgan (JPM) Interest Income to Rise, Fees Under Pressure
The covering analyst expects JPMorgan to benefit from the marginal increase in interest rates and loan growth. However, continued pressure on fee income remains a near-term concern.
NiSource's (NYSE:NI) Margins under Pressure on Maintenance Costs
The Zacks analyst believes that NiSource's ageing infrastructure requires regular maintenance and capital investment, adversely impacting its margins.
Mitsubishi UFJ (MTU) Eyes Growth, Negative Rates A Concern
The Zacks analyst thinks Mitsubishi UFJ's continued focus on medium-term business plan and inorganic expansion will support growth.
Interactive Brokers (IBKR) Well Poised But Competition Rises
The covering analyst believes that technological excellence has positioned Interactive Brokers towards further growth. Yet, increasing competition and dependence on Market Making segment are concerns.
Tesoro (TSO) to Gain from Virent Acquisition
The Zacks analyst believes Tesoro's recent acquisition of biorenewables producer Virent will help it to develop cleaner fuels and reduce compliance costs.
New Upgrades
Adobe (ADBE) Delivers Solid Q3 Results, Guides Well
The Q3 earnings beat apart, the Zacks analyst is positive on Adobe's strong market position, compelling product lines, continued innovation and strong balance sheet.
Bed, Bath & Beyond (BBBY) Lags Q2 Earnings, Sales; Retains View
The covering analyst thinks dismal second-quarter results were a result of soft comps and margins, which will likely be a hurdle in the future. However, the retained earnings view was a relief.
Royal Caribbean (RCL) Hikes Quarterly Dividend by 28%
Royal Caribbean's recent dividend hike marked the company's fifth consecutive year of a hike and reflects its financial stability and substantial profitability, according to the Zacks analyst.
New Downgrades
Lennar's (NYSE:LEN) Soft Gross Margin, Weak Houston Sales Hurt
Labor shortage, gross margin compression due to rising land and labor costs and sales slowdown in Houston might keep the housing momentum in check for the remainder of 2016, as per the Zacks analyst.
Pepsi's (PEP) Weak CSD Volumes Raise Concern
The covering analyst believes soft CSD volumes is a pressing concern for Pepsi. Further, growing health awareness is hurting the CSD category, resulting in a 3% volume decline in the first half of 2016.
Currency Woes Continue to Mar Brown-Forman's (BF.B) Top line
The Zacks analyst thinks Brown Forman (NYSE:BFb) remains threatened by currency woes and unstable emerging market conditions, which along with sale of Southern Comfort and Touca brands hurt first quarter sales.
YUM! BRANDS INC (YUM): Free Stock Analysis Report
PEPSICO INC (PEP): Free Stock Analysis Report
NIKE INC-B (NKE): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
FEDEX CORP (FDX): Free Stock Analysis Report
ADOBE SYSTEMS (ADBE): Free Stock Analysis Report
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Zacks Investment Research