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Top Analyst Reports for Amazon, Royal Dutch Shell & Estee Lauder

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Monday, February 8, 2021

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.com (AMZN), Royal Dutch Shell (RDS.A) and Estee Lauder (EL). 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 >>>

Amazon shares have essentially moved sideways after the record Q4 earnings report, though they have signficantly outperformed the S&P 500 over the past year (+55.5% vs. +18.2%). The Zacks analyst believes that the company has been benefiting from solid Prime momentum owing to ultrafast delivery services and expanding original content portfolio.

Further, strengthening AWS services and its growing adoption rate contributed well. Additionally, improving Alexa skills and features remained another positive. Expanding smart home products offerings were tailwinds.

However, accelerating coronavirus related expenses remain headwinds for the company’s margin expansion in the near term. Also, rising cloud competition from Microsoft and Google poses a risk. Growing transportation costs remain concerns.

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

Shares of Royal Dutch Shell have gained +21% in the last six months against the Zacks International Integrated Oil industry’s gain of +7.7%. The Zacks analyst believes that the company is poised for capital appreciation based on a slew of tailwinds.

Shell’s trading business has been instrumental in helping the supermajor partly cushion the impact of the coronavirus-induced oil price slump. Further, the company’s position as a key supplier of liquefied natural gas should benefit its long-term cash flow growth on the back of attractive growth opportunities.

It is also making solid progress toward the transition to a renewable energy-focused future and pledged to halve carbon emissions over the next five decades. Meanwhile, the firm’s high investment grade rating translates into low borrowing rates. Consequently, Shell is viewed a preferred energy major to own now. 

(You can read the full research report on Royal Dutch Shell here >>>)

Estee Lauder shares have gained +14.3% over the past three months against the Zacks Cosmetics industry’s rise of +13%. The Zacks analyst believes that the company’s robust cost-control measures, amid the coronavirus outbreak, drove its operating income margin in second-quarter fiscal 2021.

Also, its Skin Care business is growing steadily. This along with solid online growth bodes well, especially amid the pandemic. However, some store closures and reduced traffic in reopened ones are a concern.

Also, international travel restrictions have been negatively impacting consumer traffic in most travel retail locations. Apart from these, as part of its two-year Post-COVID Business Acceleration Program introduced in August 2020, the company had unveiled plans to reduce retail footprint.

(You can read the full research report on Estee Lauder here >>>)

Other noteworthy reports we are featuring today include Cigna (CI), Enbridge (ENB) and Norfolk Southern (NSC).

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Sheraz Mian

Director of Research

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

Prime Momentum & Growing AWS Adoption Benefit Amazon (AMZN)

Shell (RDS.A) to Benefit from LNG Demand Growth

Estee Lauder (EL) Benefits From Robust Skin Care Category

Featured Reports

Express Scripts Acquisition, Revenue Growth Aid Cigna (CI)

Per the Zacks analyst, the buyout of Express Scripts has diversified Cigna's operations opening up new revenue streams; increasing membership, superior products and services drives revenue growth.

Enbridge (ENB) to Grow on PennEast Gas Pipeline Project

The Zacks analyst believes that Enbridge's 118-mile natural gas PennEast Pipeline will bring incremental fee-based revenues.

Cost Cuts Boost Norfolk Southern (NSC), Volume Woes Hurt

The Zacks analyst is worried about the declining overall volumes (down 12% in 2020). However, efforts to trim costs are encouraging.

Blackstone (BX) Poised for Asset Growth Driven by Inflows

Per the Zacks analyst, continued net inflows are likely to aid Blackstone's assets under management.

New Product Development, Wide Market Reach Aid Eaton (ETN)

Per the Zacks analyst Eaton's operations in 175 countries across the world and development of new products through ongoing R&D investments will continue to drive demand and boost profitability.

Cost & Productivity Actions Aid Dow (DOW) Amid Demand Woes

Per the Zacks analyst, Dow should gain from cost synergy savings and productivity initiatives.

Las Vegas Sands (LVS) Banks on Macao Business, Traffic Dismal

Per the Zacks analyst, Las Vegas Sands is likely to benefit from revenue diversification efforts and planned investment in new projects in Macao. However, dismal traffic owing to the pandemic hurts.

New Upgrades

Coupa Software (COUP) Rides on Product Portfolio & Buyouts

Per the Zacks analyst, Coupa Software is benefiting from robust uptake of its solutions like Coupa Pay and Business Spend Management (BSM) offerings.

Markel (MKL) Continues to Benefit From Strategic Buyouts

Per the Zacks analyst, a number of buyouts have aided Markel to expand its reinsurance product offerings and to achieve profitable growth in insurance operations.

Electrification Revenue & Cost Cuts to Drive Meritor (MTOR)

Recent contracts with Lion Electric, Volta and Autocar are likely to boost Meritor's electrification revenues. Cost cut efforts is also aiding the firm's near-term profits, per the Zacks analyst.

New Downgrades

Pressed Margins & Surging Expenses Hurt Veeva Systems (VEEV)

Veeva Systems witnessed dented margins and surging operational costs lately. The Zacks analyst is also apprehensive of the intense competition in the healthcare industry.

Ionis' (IONS) Heavy Dependence on Biogen for Revenues a Woe

Per the Zacks analyst, Ionis is heavily dependent on Biogen for royalty revenues which is a concern. Moreover, competitive environment for its product/pipeline, mainly Spinraza is intense.

FireEye (FEYE) Hurts from Uncertain Demand Environment

Per the Zacks analyst, the Red Team and SolarWinds data breaches are threatening to impact FireEye's business in the near-term as customers are hesitating to buy its cloud-based solutions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Royal Dutch Shell PLC (RDS.A) : Free Stock Analysis Report
Norfolk Southern Corporation (NSC) : Free Stock Analysis Report
Enbridge Inc (ENB) : Free Stock Analysis Report
The Estee Lauder Companies Inc. (EL) : Free Stock Analysis Report
Cigna Corporation (CI) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
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