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Top Research Reports for Apple, Amazon & Visa

Mark Vickery

Friday, January 3, 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 Apple (AAPL), Amazon.com (AMZN) and Visa (V). 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 >>>

Apple’s shares have outperformed the broader S&P 500 index over the past year (+102.6% vs. +27.4%). The Zacks analyst believes that the company is expected to benefit from continued momentum in the Services segment.

Non-iPhone devices are also expected to perform well, driven by strong demand for iPad, Apple Watch and AirPods. The company’s expanded portfolio, including MacBook Pro, Apple Watch Series 5 and Apple TV+, is a key catalyst. Moreover, the nomination of The Morning Show for multiple Golden Globe awards reflect Apple TV+’s content strength.

Additionally, the solid adoption of Apple Watch Series 5 is now helping the iPhone maker strengthen presence in the personal health monitor space. The Phase One deal between the U.S. and China is also a positive. Nevertheless, antitrust investigations, App Store-related lawsuits and Spotify’s complaint increase legal woes.

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

Shares of Amazon have gained +9.1% in the past three months against the broader S&P 500 index’s rise of +10.4%. The Zacks analyst believes that Amazon is benefiting from its aggressive retail strategies and distribution strength.

Rapid adoption of Prime driven by customer benefits and strengthening grocery services is aiding its top line. Further, Prime is driving its holiday sales growth. Also, expanding content portfolio is encouraging Prime membership. Further, strengthening AWS services and its growing adoption rate are aiding Amazon’s dominance in the cloud space. Furthermore, improving Alexa skills and features remain major positives.

Also, rising number of Alexa compatible devices is a tailwind. However, rising transportation cost related to its free one-day shipping service remains an overhang and is 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 >>>)

Visa's shares have gained +8% over the past six months against the Zacks Financial Transaction Services industry's rise of +6.9%. The Zacks analyst believes that numerous acquisitions and alliances plus technology upgrades and effective marketing have paved the way for long-term growth and consistent increase in revenues.

Shift in payments to new methods such as mobile, cards, online and via wearables paves way for long term growth. The acquisition of Visa Europe is a long-term growth strategy for the company. Its international business has been expanding and adds diversification benefits. Its strong capital position is another positive.

However, high client incentives and expenses weigh on its operating margin. Also, adverse foreign exchange volatility imparts instability to the company’s earnings.

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

Other noteworthy reports we are featuring today include salesforce.com (CRM), Honeywell International (HON) and 3M Company (MMM).

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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

Expanding Portfolio, Services Strength to Aid Apple (AAPL)


Amazon (AMZN) Banks on Holiday Initiatives & AWS Adoption


Visa (V) Rides on Acquisitions and Rising Business Volumes


Featured Reports

salesforce (CRM) Rides on Portfolio Strength and Buyouts

Per the Zacks analyst, salesforce is gaining from its diverse cloud offerings, which are helping it win customers globally.

Performance Materials Aids Honeywell (HON), High Debt Hurts

Per the Zacks analyst, solid traction of Honeywell's Performance Materials & Technologies segment, fueled by strength in process solutions business will drive its sales. High debt level is a concern.

Buyouts & Divestments to Aid 3M (MMM), Forex Woes Remain

Per a Zacks analyst, 3M (MMM) is poised to gain from its buyouts and divestments (the recent being advanced ballistic-protection business).

Goldman (GS) Exhibits Cost Control; Legal Issues Linger

Per the Zacks analyst, Goldman depicts cost control efforts to drive operational efficiency. Yet, legal issues and persistent weak fixed income trading revenues remain concerns.

Portfolio Strength, Expanding Partner Base Aids VMware (VMW)

Per the Zacks analyst, VMware's diversified product portfolio and expanding partner base that now includes Microsoft, AWS & IBM are driving top-line growth.

AMD Banks on Strength in Product Portfolio & Partnerships

Per the Zacks analyst, Advanced Micro Devices is benefiting from robust adoption of latest EYPC, Ryzen and Radeon processors.

General Motors (GM) Rides on High SUV Demand Amid Debt Woes

Healthy demand for trucks, SUVs & crossovers is boosting General Motors' sales. However, the Zacks analyst is concerned about the firm's high leverage of 88% and negative free cash flows.

New Upgrades

High Demand, Solid Financials Aids Huntington Ingalls (HII)

Per the Zacks Analyst, over 70% of the U.S. Navy fleet consists of Huntington Ingalls ships which leads to strong demand rise.

Pilgrim's Pride (PPC) Sales to Gain From Prepared Foods Unit

Per the Zacks analyst, Pilgrim's Pride is set to gain from its Prepared Foods unit. The company is making investments to strengthen this unit, as it is likely to form a big proportion of the top line.

Goodyear (GT) to Gain From TireHub JV and Raben Acquisition

Per the Zacks analyst, Goodyear's TireHub JV has been aiding the firm in effective distribution of tires in the United States. Also, the Raben Tire buyout bolsters Goodyear's network and prospects.

New Downgrades

Stringent Regulations, High Debt Hurts CenterPoint (CNP)

Per the Zacks Analyst, stringent utility regulations could be detrimental to CenterPoint Energy's growth. Moreover, outstanding fixed-rate debt increases vulnerability to adverse economic conditions.

Cabot Oil & Gas Corp (COG) Hurt by Weak Natural Gas Prices

The Zacks analyst believes that the declining production view attributable to the drop in natural gas price, along with raised capex guidance, might continue to hamper Cabot Oil & Gas' bottom line.

Merger Investigation, Stiff Competition Hurts Embraer (ERJ)

Per the Zacks Analyst, the European Commission is concerned that the Boeing-Embraer merger may reduce competition in aircraft market. It also faces stiff market competition due to peer price pressure.


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Visa Inc. (V) : Free Stock Analysis Report

3M Company (MMM) : Free Stock Analysis Report

Honeywell International Inc. (HON) : Free Stock Analysis Report

salesforce.com, inc. (CRM) : Free Stock Analysis Report

Amazon.com, Inc. (AMZN) : Free Stock Analysis Report

Apple Inc. (AAPL) : Free Stock Analysis Report

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