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Top Research Reports for Adobe, Charter Communications & HCA Healthcare

Mark Vickery

Thursday, June 20, 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 Adobe (ADBE), Charter Communications (CHTR) and HCA Healthcare (HCA). 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 >>>

Adobe’s shares have gained +17% over the past year, underperforming the Zacks Software industry which has increased +27.4% over the same period. Adobe reported strong fiscal second-quarter results. The Zacks analyst thinks increasing demand for its creative products are driving top-line growth.

Also, the company’s Adobe Document Cloud and Adobe Experience Cloud products, along with growing subscription for cloud application have aided results. It has been making great efforts toward establishing its presence in cloud-related software areas such as documents and marketing.

Adobe’s market position, compelling product lines, continued innovation, solid adoption of Creative Cloud and Adobe marketing cloud are major positives. However, lower end-market demand and exposure to Europe remain overhangs. Additionally, high acquisition expenses do not bode well for its margin expansion.

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

Shares of Charter Communications have outperformed the Zacks Cable TV industry year to date (+39.5% vs. +28.5%).The Zacks analyst thinks the company’s residential and commercial Internet and voice customer growth continues to drive its top line. Increase in Internet speed at no extra cost is aiding subscriber growth.

Additionally, Charter is looking to attract video customers by providing a new OTT video service. Notably, the company launched Spectrum TV Essentials in Charter’s footprint for Spectrum Internet users who do not avail Spectrum video services. However, commercial revenues continue to suffer due to migration of customers to Spectrum pricing and packaging from Legacy TWC and Legacy Bright House.

Moreover, Charter continues to lose video subscribers primarily due to cord-cutting and intense competition from streaming service providers such as Netflix, HBO and Amazon.

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

HCA Healthcare’s shares have outperformed the Zacks Hospital industry in the past year, gaining +20.9% vs. +6.3%. Moreover, it has witnessed its 2019 and 2020 earnings estimates move north over the past 30 days.

The Zacks analyst thinks its top line has been growing over the last several quarters on the back of higher admissions, same facility emergency room growth and surgical growth, etc. Multiple acquisitions have helped the company gain a strong foothold in the industry, fueling its inorganic growth.

A strong balance sheet and free cash flow are other positives for the company. A bullish 2019 guidance should instill investor’s confidence in the stock. However, high operating expenses persistently weigh on its margins.

The company is expected to witness a rise in costs due to its constant growth-related investments. High leverage is another concern for the company.

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

Other noteworthy reports we are featuring today include Becton, Dickinson (BDX), Micron (MU) and Shopify (SHOP).

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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

Adobe (ADBE) Rides on Creative Strength, Expenses A Concern

Subscriber Gains, Wireless Initiatives Benefit Charter (CHTR)

Rising Top-line Aid HCA Healthcare (HCA), High Costs Hurt

Featured Reports

Product Rollouts & Growing Merchant Base Aid Shopify (SHOP)

Per the Zacks analyst, Shopify is benefiting from introduction of Fraud Protect and Shopify Ping solutions.

SBA Communications (SBAC) Beats Market Blues with Firm Growth

Per the Zacks analyst, SBA Communications is poised for solid growth with in-depth sector knowhow, scale and resources, despite being susceptible to earnings volatility due to industry consolidation.

Cummins (CMI) Rides on Improved Demand Amid Expense Woes

Per the Zacks analyst, Cummins gains from increased engine and component demand for heavy and medium-duty trucks in North America despite rising expenses.

Weyerhaeuser (WY) Rides on Operational Excellence, Costs High

Per the Zacks analyst, Weyerhaeuser's focus on operational excellence plans, like merchandising for value, are encouraging.

New Product Innovation Aids Textron (TXT), Competition Hurts

Per the Zacks analyst, Textron's new product launch will significantly expand its shares in the all-terrain vehicles industry.

Buyout, Loans Aid Prosperity Bancshares (PB) Amid Margin Woe

Per the Zacks analyst, acquisitions, loan growth and improving asset quality will support Prosperity Bancshares.

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

Per the Zacks analyst, its progress on strategic initiatives, alongside strength in Hollister brand and digital business should drive sales.

New Upgrades

J.B. Hunt (JBHT) Rides on Acquisitions, Dividends & Buybacks

The Zacks analyst is impressed by the company's efforts to reward its shareholders through dividends and buybacks. J.B. Hunt's growth by acquisition strategy is also encouraging.

LATAM Airlines' (LTM) Cost-Cut Plans & Dividends Bode Well

The Zacks analyst is impressed with LATAM Airlines' efforts to cut non-fuel unit costs. The company's initiatives to reward its shareholders are encouraging too.

New Program Wins, Global Expansion Benefits Plexus (PLXS)

According to the Zacks analyst, Plexus benefits from new program wins as well as continuing global expansion.

New Downgrades

Weak Core Life Sciences Unit Hurts Becton, Dickinson (BDX)

Becton, Dickinson has seen sluggishness in the core Life Sciences unit in recent times. The Zacks analyst is apprehensive of near-term headwinds in the company's Drug Coated Balloon business.

Micron (MU) Battered by Falling Chip Prices, Trade Tussle

Per the Zacks analyst, Micron is hurt by higher-than-expected drop in DRAM and NAND pricing. Moreover, the U.S.-China trade spat makes the demand environment highly volatile for the company.

Low Gas Price, High Leverage to Weigh on Apache (APA)

The Zacks analyst is worried over Apache's Permian gas output due to the extremely low prices of the commodity in West Texas.

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Shopify Inc. (SHOP) : Free Stock Analysis Report
Micron Technology, Inc. (MU) : Free Stock Analysis Report
HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report
Charter Communications, Inc. (CHTR) : Free Stock Analysis Report
Becton, Dickinson and Company (BDX) : Free Stock Analysis Report
Adobe Systems Incorporated (ADBE) : Free Stock Analysis Report
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