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Top Research Reports for Adobe, Philip Morris & Mondelez

Mark Vickery

Thursday July 11, 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), Philip Morris (PM) and Mondelez (MDLZ). 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 +20.3% in the past year, underperforming the Zacks Software industry, which has increased +26.3% during the same time period. The Zacks analyst thinks strong demand for Adobe's creative products is driving its top-line growth.

Also, the company’s Adobe Document Cloud and Adobe Experience Cloud products, along with growing subscription for cloud application are positives. 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. High acquisition expenses do not bode well for margin expansion.

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

Shares of Philip Morris have gained +15.3% in the past six months, outperforming the Zacks Tobacco industry, which has increased +10.5% over the same period. The Zacks analyst thinks sturdy bottom-line trend along with efficient pricing and gains from growth in RRPs arena has been boosting the stock.

These upsides made a positive impact on first-quarter results, wherein earnings and revenues beat expectations. Also, earnings improved year on year. Going forward, the company expects price hikes to remain a key growth catalyst. The company is also on track with exploring prospects in RRPs and expanding them to newer regions.

However, the cigarette category remained soft in the first quarter, thanks to lower revenues and flat volumes. Cigarette shipment volumes are expected to continue declining in 2019. The unit is also being weighed down by stringent policies and fading consumer interest. Moreover, unfavorable currency movements are a threat.

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

Mondelez’s shares have outperformed the Zacks Food Preparation industry over the past three months, gaining +11.1% vs. +4.2%.The Zacks analyst thinks the company is steadily gaining from strategic pricing endeavors. In fact, during the first quarter of 2019, balanced pricing and volume/mix helped organic revenues rise nearly 3.7%. Also, smart pricing led to adjusted gross margin improvement.

Going forward, management plans to continue striking a balance between volumes and pricing. Additionally, it is progressing well with savings initiatives. Mondelez also focuses on brand building through innovation. It is also bolstering presence in emerging regions.

However, the company grapples with adverse currency movements, which dented top-line performance during the first quarter. Management expects currency fluctuation to be a drag in 2019. Higher raw material costs and rising SG&A expenses are other concerns.

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

Other noteworthy reports we are featuring today include ConocoPhillips (COP), Southern Company (SO) and Tesla (TSLA).

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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

Creative Strength Fuels Adobe (ADBE), European Exposure Worrying

Pricing Strategy to Continue Aiding Philip Morris (PM)

Strategic Pricing Likely to Keep Fueling Mondelez (MDLZ)

Featured Reports

Southern (SO) Buoyed by AGL Buy, Project Overruns Hurt

The Zacks analyst believes that AGL acquisition has helped Southern to bolster its customer base and business. However, timing and cost overrun issues over Vogtle and Kemper projects are concerns.

Tesla (TSLA) Rides on Model 3 Delivery Amid High Expenses

Per the Zacks analyst, record Model 3 sedan deliveries is aiding Tesla overcome waning sales of Model S.

Strong Data Service Business Aids Intercontinental (ICE)

Per the Zacks analyst, Intercontinental Exchange is set to grow on the strength of global data services, trading volume growth and capital position.

Investments to Aid Entergy (ETR) Amid Price Fluctuations

Per the Zacks analyst, Entergy is making solid investments in grid upgrades, asset replacement and industrial load growth.

CLARCOR Buyout Aids Parker-Hannifin (PH), High Costs Ail

Per the Zacks analyst, Parker-Hannifin's revamped "Win Strategy" along with the CLARCOR buyout should boost its growth prospects.

Restaurant Brands (QSR) Rides on Franchising Amid Competition

The Zacks analyst believes that focus on franchising should reduce Restaurant Brands' capital requirements and facilitate earnings growth.

Traffic Growth Aids LATAM Airlines (LTM) Amid Currency Woes

The Zacks analyst appreciates solid growth in passenger traffic at LATAM Airlines, courtesy of strong demand for air travel.

New Upgrades

Avis Budget (CAR) Benefits from Partnerships, Fleet Growth

The Zacks analyst believes that expansion of connected cars fleet has helped Avis Budget streamline operations and reduce costs. Partnerships with Alphabet and Amazon has enhanced user experience.

Solid Asset Balance Aids Cohen & Steers (CNS) Revenue Growth

Per the Zacks analyst, Cohen & Steers' revenues will continue to grow driven by robust assets balance, diverse product offerings and investment strategies. Its capital deployment remains impressive.

Strong Technology & Equipment Segment Aid DENTSPLY (XRAY)

DENTSPLY has been gaining from solid prospects of its core Technology & Equipment unit. The Zacks analyst is also bullish about a series of product launches by the company in recent times.

New Downgrades

ConocoPhillips (COP) Hurt by Rising Operating & Output Costs

Per the Zacks analyst, ConocoPhillips' increasing production costs and operating expenses in 2019 will likely affect the bottom line.

Rising Expenses & Decline in Loans Hurt Northern Trust (NTRS)

Per Zacks analyst, rising costs on ongoing investments in technology remain a headwind for Northern Trust. Also, decline in loans are impacting interest income.

Higher SG&A Costs Hurt Bed Bath & Beyond's (BBBY) Margins

Per the Zacks analyst, Bed Bath & Beyond's margins have been pressurized for 12 quarters now due to lower merchandise margins and higher SG&A expenses.

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Tesla, Inc. (TSLA) : Free Stock Analysis Report
Southern Company (The) (SO) : Free Stock Analysis Report
Philip Morris International Inc. (PM) : Free Stock Analysis Report
Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report
ConocoPhillips (COP) : Free Stock Analysis Report
Adobe Systems Incorporated (ADBE) : Free Stock Analysis Report
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