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Top Analyst Reports For Apple, Adobe & Anheuser-Busch

Published 11/21/2017, 04:20 AM
Updated 07/09/2023, 06:31 AM

Tuesday, November 21, 2017

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 Apple (AAPL), Adobe (ADBE) and Anheuser-Busch (BUD). 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 >>>

Apple’s shares are up +46.7% in the year-to-date period, handily outperforming the S&P 500 (up +15.7%) and the Zacks Technology sector (up +27.3%). Apple reported spectacular fourth quarter fiscal 2017 results with both top and bottom lines beating expectations. Steady iPhone sales, spurt in Services segment and a resurgent Macs and iPad business backed the impressive results.

Business in China saw massive reacceleration driven by iPhone, Services and Mac sales. In India revenues grew twofold. The company also gave a very encouraging outlook for the current quarter, which includes the holiday season, given the anticipation of strong performance by its latest smartphone, iPhone X.

Going forward, the Zacks analyst thinks foray into fast-growing technologies like automobile, AI & AR/VR are long-term drivers. But the new iPhone X at $999 is quite pricey, particularly for cost-sensitive markets like India. Intensifying competition from cheaper Chinese handset-makers cannot be ignored.

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

Shares of Adobe have gained +77.1% year to date, outperforming the Zacks Software industry which has increased +35.7% over the same period. The company’s fiscal third quarter earnings exceeded expectations backed by demand for the company’s Creative Cloud software tools.

The Zacks analyst likes Adobe’s market position, compelling product lines, continued innovation, solid adoption of Creative Cloud and Adobe marketing cloud. Also, its acquisition of TubeMogul will help the company to build its position in the expanding Digital Marketing space. However, end-market recovery appears slow, which remains a matter of concern.

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

Anheuser-Busch’s shares have underperformed the Zacks Alcoholic Beverages industry so far this year (+9.6% vs. +20.3%), largely due to the company’s dismal earnings history. The company’s last reported quarter marked its seventh straight earnings miss, while revenues missed expectations for the second consecutive quarter.

However, the Zacks analyst likes Anheuser-Busch’s robust brand portfolio and solid geographical reach. The company keeps introducing near beer alternatives, along with no- and low-alcohol beers to resonate with changing consumer demand. Anheuser-Busch is also likely to benefit from its constant expansion in the craft beer space, given the rising demand for this beer category.

Furthermore, SABMiller’s buyout has helped it gain a dominant share in the global beer market. However, it continues to anticipate increased cost of sales, owing to lingering currency woes and growth of premium brands. Also, volatility in some of key regions remains a threat.

(You can read the full research report on Anheuser-Busch here >>>).

Other noteworthy reports we are featuring today include Tesla (NASDAQ:TSLA) (TSLA), PACCAR (PCAR) and General Mills (NYSE:GIS) (GIS).

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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>>>

Featured Reports

Model 3 Production Target Miss Hurts Tesla (TSLA)

In third-quarter 2017, Tesla missed the Model 3 production target. Per the Zacks analyst, due to this initial target miss, customers have become skeptical about the company.

Markel (MKL) Gains from Improving Premiums, Cat Loss Hurts

Per the Zacks analyst, Markel continues to benefit from solid underwriting, investment and Markel Ventures operations. However, exposure to cat loss always induces volatility in underwriting results.

BioMarin (BMRN) Drugs Enjoy Strong Demand, Pipeline Solid

Per the Zacks analyst, BioMarin has an impressive rare-disease pipeline with pegvaliase approval likely in 2018.

Church & Dwight's (CHD) Solid Organic Sales to Cushion Margins

Church & Dwight has been recording organic sales growth for a while now, due to higher volumes and constant innovations. Per the Zacks analyst, this should help cushion the company's soft margins.

Plains All Pipeline (PAA) Gains from New Pipelines & Storage

Per the Zacks analyst Plains All's Pipeline's systematic capital expenditure to expand its pipeline capacity and storage facilities will allow it to benefit from rising fossil fuel production.

Strategic Funding, TRP Store Spread to Boost PACCAR (PCAR)

Per the Zacks analyst, strategic investments to manufacture products and expansion of Truck and Trailer Parts program (TRP) stores will help PACCAR to offer new products and lift its brand awareness.

Strong Land Drilling Demand Boosts National Oilwell (NOV)

The Zacks analyst believes strong demand for Oilwell's land businesses in North America bodes well for NOV.

New Upgrades

Abercrombie's (ANF) Sturdy Comps Run to Propel Top-Line

Abercrombie boasts an impressive comparable sales run. Per the Zacks analyst, its progress on strategic initiatives, alongside strength in Hollister and direct-to-customer business should drive sales.

Cavium Buyout to Expand Marvell's (MRVL) Product Offerings

Per the Zacks analyst, Cavium's buyout will help Marvell in expanding its offerings beyond hard disk drives microprocessors to server microprocessor market, which is currently dominated by Intel (NASDAQ:INTC).

Copart (CPRT) Gains on Network Spread, Foreign Acquisitions

Per the Zacks analyst, focus on geographic expansions through foreign business acquisitions and expansion of existing network facilities will help Copart to manage rising volumes and boost growth.

New Downgrades

High Capital Costs and Inventory Weigh on AutoZone (NYSE:AZO)

Per the Zacks analyst, a spate of store openings is escalating costs for AutoZone. This is not only adding to capital and operating expenses but also inventory per store.

Hard Home, Electronics Likely to Hurt Big Lots' (NYSE:BIG) Sales

Per the Zacks analyst, softness in Hard Home, Electronics, Food and Consumables remain deterrents. Management expects fiscal year sales growth in the range of 2-2.5% compared with prior view of 2-3%.

General Mills (GIS) Sales Hit Hard by Organic Food Trend

Sales at General Mills' North America Retail segment, contributing 65% to its sales, have been soft owing to the shift in consumer preference toward natural and organic food, per the Zacks analyst.



Tesla Inc. (TSLA): Free Stock Analysis Report

PACCAR Inc. (NASDAQ:PCAR): Free Stock Analysis Report

General Mills, Inc. (GIS): Free Stock Analysis Report

Anheuser-Busch Inbev SA (BUD): Free Stock Analysis Report

Adobe Systems Incorporated (NASDAQ:ADBE): Free Stock Analysis Report

Apple Inc. (NASDAQ:AAPL): Free Stock Analysis Report

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Zacks Investment Research

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