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Top Analyst Reports for Amazon, Boeing & NextEra

Mark Vickery

Tuesday, July 30, 2019

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 Amazon (AMZN), Boeing (BA) and NextEra (NEE). 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 >>>

Outperform-rated Amazon’s shares have outperformed the broader market year to date (the stock is up +27.3% vs. the +19.1% increase for the S&P 500 as a whole). Amazon reported mixed second quarter results wherein earnings missed estimates but revenues outpaced the same.

However, the company exhibited year over year growth on both counts. Amazon benefited from its solid Prime momentum owing to robust grocery services and strong content portfolio. Also, Prime Free One Day service helped Amazon in gaining traction across the customers. Further, strengthening AWS services and its growing adoption rate contributed well.

The Zacks analyst thinks improving Alexa skills and features remain a major positive. However, rising transportation costs related to its free one-day shipping service remain an overhang and are likely to increase further. Also, Amazon expects foreign exchange headwinds to continue impacting its top line.

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

Shares of Boeing have gained +5.5% year to date, underperforming the Zacks Aerospace & Defense industry, which has increased +22% during the same time period. Boeing ended the second quarter of 2019 on a dismal note. The company incurred a huge loss in the quarter. Also, the top line missed expectations and declined year over year.

However, the Zacks analyst stresses that Boeing remains the largest aircraft manufacturer globally in terms of revenues, orders and deliveries and one of the major aerospace and defense contractors. Its proposed joint venture with Embraer is expected to strengthen Boeing’s commercial business significantly.

Its commercial business suffered a major setback due to lower 737 deliveries, following the 737 Max product line's grounding and subsequent costs associated with this development. Consequently, its revenues, earnings and cash flow position were affected significantly.

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

NextEra’s shares have outperformed the Zacks Electric Power industry in the past year, gaining +26.2% vs +10.5%. The company’s second-quarter performance was better than expected, courtesy of strong progress across all its businesses. The Zacks analyst thinks NextEra’s investments aimed at driving renewable operations through the “30 by 30” plan will help meet its goal to make its generation portfolio cleaner.

Focus on expanding operations in natural gas pipelines and further widening of its business via acquisitions and organic growth will enable the company to achieve its long-term earnings growth target. However, the nature of its business is subject to complex and comprehensive federal, state and other regulations.

If planned nuclear plant outages last longer than expected or unplanned outages take place, normal operations and profitability might be hindered.

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

Other noteworthy reports we are featuring today include Schwab (SCHW), ServiceNow (NOW) and Fiserv (FISV).

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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>>>

Today's Must Read

Amazon (AMZN) Banks on Prime Momentum & Growing AWS Adoption

Commercial Jet Outlook to Aid Boeing (BA) Amid 737 Woes

Investment in Infrastructure and Renewables Aid NextEra (NEE)

Featured Reports

Growing Customer Base & Partnerships Aid ServiceNow (NOW)

Per the Zacks analyst, ServiceNow benefits from rising adoption of its workflows from companies undergoing digital transformation.

Pressure on Margins, High Expenses Hurt Schwab (SCHW) Growth

Per the Zacks analyst, pressure on net interest margin amid dismal rate environment are major near-term concerns for Schwab.

Fiserv (FISV) Rides on Strategic Business Moves, Debt High

The Zacks analyst is impressed with Fiserv's strategy to widen its client base and enhance its product portfolio with the help of buyouts and partnerships.

New Model Launches Drive Ford (F) Amid Recall Woes

Per the Zacks analyst, Ford aims at to build up a winning portfolio through new or redesigned model launches, propelled by growing appetite for SUVs.

Xilinx (XLNX) Banks on Wireless Business Amid Trade Tussle

Per the Zacks analyst, growth in the Wireless market, supported by early 5G production, is a key driver for Xilinx.

Debt-free Position & Revenue Growth Aid T. Rowe Price (TROW)

Per the Zacks analyst, debt free position with substantial liquidity has assisted in strengthening T. Rowe Price's capital leverage.

Suncor (SU) Buoyed by Fort Hills Amid Syncrude Concerns

While impressive production ramp-up at its Fort Hills facility bodes well for Suncor, the Zacks analyst is worried about increasing cash operating costs at Syncrude, which may dent profits.

New Upgrades

NVR (NVR) Rides On Solid Home Deliveries & Business Model

Per the Zacks analyst, NVR continues to gain from increase in home deliveries. Moreover, disciplined business model and focus on maximizing liquidity and minimizing risks bode well for the company.

Nektar's (NKTR) Oncology Deals, Pipeline Driving Growth

Per the Zacks analyst, Nektar has collaborations with large pharma companies which provide significant amount in fees. Moreover, the company has encouraging candidates in its pipeline.

Starz Subscriber Growth Boosts Lionsgate's (LGF.A) Prospects

Per the Zacks analyst, increased premium programming, along with higher Starz subscriber growth, is likely to aid Lionsgate's top line growth.

New Downgrades

Weak Auto Production, Competition Hurt TE Connectivity (TEL)

Per the Zacks analyst, sluggish global auto production is hurting TE Connectivity's Transportation Solutions segment. Also, rising competition from Amphenol and Molex is a risk.

Poor Case Shipment in China, Weak Margins Ail Align (ALGN)

The Zacks analyst is worried about Align Technologies' dull Invisalign case shipment in China on tough consumer environment, which should linger through the next few quarters.

Contraction in Margins Continue to Hurt Merit Medical (MMSI)

Per the Zacks analyst, foreign exchange and an unfavorable product mix continue to weigh on Merit Medical's gross and operating margins.

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The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
ServiceNow, Inc. (NOW) : Free Stock Analysis Report
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
Fiserv, Inc. (FISV) : Free Stock Analysis Report
The Boeing Company (BA) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
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