Wednesday, June 27, 2016
We have a long line-up of research reports from the Zacks analyst team in today's issue, but you should definitely check out the Adobe Systems (NASDAQ:ADBE) (ADBE), Goldman Sachs (NYSE:GS) (GS) and Honeywell International (NYSE:HON) reports.
Adobe’s second quarter earnings results were particularly encouraging, primarily due to its transition from a licensing to a cloud-based subscription model. This has resulted in record Creative and Marketing Cloud revenue and impressive ARR (Annualized Recurring Revenue) growth. Marketed as a subscription model with attractive monthly pricing, the Zacks analyst believes that Adobe’s Creative Cloud offering will continue to be a catalyst for revenue growth in the coming years. (You can read the full research report on ADBE here.)
Banks and brokers have suffered as a result of the Brexit vote, but the sell-off may have offered an attractive entry point in a prestigious operator - Goldman Sachs. The analyst believes that Goldman remains well positioned to weather any severe economic downturn, as the recent successful stress test reconfirms. The analyst likes Goldman's organic growth, expense management, strong capital position, steady capital deployment and business diversification. (You can read the full research report on GS here.)
Honeywell’s diversified business portfolio has the potential to earn consistent above-average returns and mitigate operating risks. The analyst likes the conglomerate' flexible yet disciplined focus on cost and productivity, and conservative balance sheet. The company’s focus on working capital management and free cash flow generation remain key positive attributes amid a challenging macroeconomic environment. (You can read the full research report on HON here.)
Other notable reports today include Schlumberger (SLB), Verizon (VZ) and Accenture (ACN).
- Positive Earnings Mometnum at Accenture (ACN)
- Worker Strike May Impact Verizon (VZ) 2Q16 Results
- Schlumberger's (SLB) Earnings Outlook Still Weak
You can find all of today's stock research reports here
Sheraz Mian
Director of Research
Today's Must Read
Featured Reports
Accenture's (ACN) Q3 Earnings Surpasses Estimates
Accenture's earnings also increased on a year-over-year basis, primarily attributable to higher revenues, lower tax rate and share count.n
Costs & Margin Pressure Remain Headwinds for BNY Mellon (BK)
Higher litigation and restructuring expenses continue to weigh on profitability while concerns related to stringent regulations and margin pressure continue to persist.
Brighter Prospects Ahead for Quest Diagnostics (NYSE:DGX)
The Zacks analyst thinks Quest Diagnostics' prospects are improving with its focus on five-point strategy execution, recent collaborations and three new cancer tests.
Crude Rebound Likely to Benefit Schlumberger (SLB)
The covering analyst thinks Schlumberger is likely to gain from any crude upside post Brexit given its broad geographical footprint and focus on execution.
Will Opportunistic Investments Drive SL Green (SLG) Growth?
The Zacks analyst thinks opportunistic investments will boost SLG's overall portfolio, but high exposure to office properties remain concerns.n
JPMorgan (NYSE:JPM) Clears Stress Test but Energy Woes Linger
The Zacks analyst thinks energy exposure will remain an overhang despite the fact that it has cleared the recent stress test.
ResMed (RMD) Poised to Gain from Brightree Buyout
ResMed is poised to gain from the prospective acquisition of Brightree but currency pressures pose a threat.
New Upgrades
Nucor (NYSE:NUE) Well Placed on Auto Momentum, Higher Prices
A resurgent automotive market and higher steel prices should benefit this basic materials stock, according to the Zacks analyst.
Strong Subscriber Revenues to Boost Sirius' (SIRI) 2Q Results
The covering analyst thinks impressive net subscriber growth and a move to increase the stake in its Canadian unit will benefit Sirius.
Rockwell Collins (NYSE:COL) Up on Systematic Investments
Systematic investments in inorganic growth programs and focus on research & development should boost Rockwell's future performance.
New Downgrades
Recent Worker Strike May Affect Verizon's (VZ) 2Q16 Financials
Verizon expects its second quarter 2016 earnings to be negatively due to the recent employee strike as well as a number of repairing and maintenance issues.
Wells Fargo (NYSE:WFC) Continues to Face Margins & Cost Pressure
The covering analyst believes top-line headwinds will persist as the pressure on net interest margin may not ease amid a soft interest rate environment.
Brexit May Significantly Impact Xerox's (NYSE:XRX) Fortunes
The Zacks analyst stresses that Xerox will be impacted significantly by Brexit since 21% of the company's total revenue is generated from Britain.
VERIZON COMM (VZ): Free Stock Analysis Report
SCHLUMBERGER LT (SLB): Free Stock Analysis Report
HONEYWELL INTL (HON): Free Stock Analysis Report
GOLDMAN SACHS (GS): Free Stock Analysis Report
ADOBE SYSTEMS (ADBE): Free Stock Analysis Report
ACCENTURE PLC (ACN): Free Stock Analysis Report
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Zacks Investment Research