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Top Analyst Reports for NIKE, Workday & Allstate

Sheraz Mian

Friday, May 22, 2020

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 NIKE (NKE), Workday (WDAY) and Allstate (ALL). 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 >>>

NIKE’s shares have outperformed the Zacks Shoes and Retail Apparel industry over the past year (+13.4% vs. +11%). The Zacks analyst believes that the use of its digital ecosystem as a key playbook to combat the COVID-19 crisis, has been receiving applause.

Notably, the company retained its positive earnings track record, with earnings and sales beat in third-quarter fiscal 2020. The NIKE Direct business displayed strength backed by more than 30% digital revenue growth across all geographies and Converse.

Nevertheless, the effects of store closures in China due to outbreak hurt Greater China’s revenues in third-quarter fiscal 2020. This resulted in lower sales mix in Greater China, which is its high margin geography, causing gross margin decline in the quarter. Further, the company expects soft results in the fiscal fourth quarter due to store closures.

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

Shares of Workday have lost -5.5% over the past six months against the Zacks Internet Software industry’s rise of +23.8%. The Zacks analyst believes that the company is likely to benefit from solid adoption of subscription and professional software solutions.

The buyout of Adaptive Insights is enabling it to help enterprises in making better business decisions with Adaptive Insights business planning cloud, which bodes well for its prospects. Further, extended capabilities and tools in Workday HCM and Workday Financial Management to enhance customer experience is a positive.

Workday’s foray into the platform-as-a-service market by launching the Workday Data-as-a-Service Platform also holds promise. However, stiff competition from Oracle and SAP is likely to limit margin expansion at least in the near term. Increasing investments on product enhancements are likely to put pressure on the bottom line.

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

Allstate’s shares have lost -23% over the past three months against the Zacks Insurance - Property and Casualty industry’s fall of -22.8%. The Zacks analyst believes that it is poised to grow on the back of its solid property and liability segment.

A number of initiatives that it took to improve profitability in its auto segment are now driving growth. A strong balance sheet and intelligent capital management are impressive. Acquisitions made recently should aid its inorganic growth.

Its thriving service business provides a diversified revenue stream. However, it is exposed to catastrophe losses. Escalating expenses might weigh on margins too. Low interest rates stress investment income as well. Further, the COVID-19-led decline in GDP and unemployment might affect premiums.  

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

Other noteworthy reports we are featuring today include Synopsys (SNPS), The Travelers Companies (TRV) and HP (HPQ).

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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

NIKE (NKE) Digital Business Act As Catalyst, Expects Soft Q4

Workday (WDAY) Gains from Robust Traction of HCM Solution

Allstate (ALL) Rides on Strong Property-Liability Segment

Featured Reports

Synopsys (SNPS) Rides on Product Launches and Acquisitions

Per the Zacks analyst, Synopsys' sustained focus on introducing products and acquisitions such as Cigital and Black Duck are key growth drivers for the company.

Travelers (TRV) Rides on Auto & Homeowners, Cat Loss Hurts

Per the Zacks analyst, consistent progress and strong market of the auto and homeowners business have driven revenues.

HP (HPQ) Banks on Innovative Pipeline, Marketing Strategy

Per the Zacks analyst, HP's sustained focus on product innovations, pricing, marketing and sales activities are helping it revive personal systems and printing business.

Air-Travel demand Ails Southwest (Luv), Fuel Costs Aid

The Zacks analyst is concerned about the decline in passenger revenues due to the lacklustre air-travel demand.

Investment and Customer Addition Aid Alliant Energy (LNT)

Per the Zacks analyst Alliant Energy's $5.1B long term capital investment to strengthen infrastructure and ongoing electric and natural gas customer addition will drive its performance.

Diversified Business to Aid Nordson (NDSN), Pandemic to Drag

Per a Zacks analyst, Nordson's (NDSN) well-diversified business structure, with presence in multiple end markets, will help it effectively deal with the coronavirus outbreak.

Investments to Drive Crown Holdings (CCK) Amid Lower Volumes

Per the Zacks Analyst, Crown Holdings will benefit from investing in capacity that will help it capitalize on growing demand for beverage cans despite lower volumes amid coronavirus crisis.

New Upgrades

Store Reopening to Aid Columbia Sportswear's (COLM) Sales

Columbia Sportswear recently reopened 30 namesake brand stores and plans to open more U.S. stores in the coming months. The Zacks analyst expects store reopening and e-commerce strength to aid sales.

Big Lots' (BIG) Solid Strategic Efforts to Drive Performance

Per the Zacks analyst, Big Lots has been benefiting from its transformation initiative, which focuses on driving top-line growth, cost containment, and enhancing systems and digital capabilities.

Leer South Mine, JV with Peabody Aid Arch Coal (ARCH)

Per the Zacks analyst, Arch Coal's joint venture agreement with Peabody to promote high quality assets and ongoing development at its Leer South Mine will boost performance.

New Downgrades

Lower Interest Rates, Rising Expenses Hurt Wells Fargo (WFC)

Per Zacks analyst, Wells Fargo's interest income remains under pressure due to low rate environment. Also, rising costs in providing benefits to clients amid coronavirus might curb bottom-line growth.

L Brands (LB) Soft Victoria's Secret Performance a Concern

Per the Zacks analyst, L Brands inability to keep up with changing consumer preferences and merchandising actions led to Victoria's Secret's failure. During first-quarter fiscal 2020, sales slid 45.6%

Ayvakit Boosts Blueprint (BPMC), Pipeline Setbacks A Concern

Per the Zacks analyst, Blueprint Medicines' approval of lead drug Ayvakit will boost the growth prospects of the drug significantly. However, pipeline and regulatory setbacks a concern.

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Workday, Inc. (WDAY) : Free Stock Analysis Report
The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report
Synopsys, Inc. (SNPS) : Free Stock Analysis Report
NIKE, Inc. (NKE) : Free Stock Analysis Report
HP Inc. (HPQ) : Free Stock Analysis Report
The Allstate Corporation (ALL) : Free Stock Analysis Report
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