Top Research Reports for Cisco Systems, Stryker & Enbridge
Tuesday, October 24, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Cisco Systems, Inc. (CSCO), Stryker Corp. (SYK) and Enbridge Inc. (ENB). 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 >>>
Shares of Cisco Systems have outperformed the Zacks Computer - Networking industry over the past year (+21.3% vs. +20.5%). The company is riding on growing demand for its security, artificial intelligence and cloud products. Its security portfolio is benefiting from the launch of new data loss prevention, firewall and Zero Trust capabilities.
Its Zero Trust portfolio is riding on strong demand for its Duo offering. Optimized application experience is benefiting from strong demand for ThousandEyes. Its investments across the security segment, focusing on cloud-based and AI-driven business, is expected to drive growth.
Expanding growth opportunities for low-power-consuming technologies, including IoT, Silicon One and Power Over Ethernet, bodes well for Cisco. Acquisitions including Lightspin Technologies, Smartlook and Armorblox are expected to benefit top-line growth.
(You can read the full research report on Cisco Systems here >>>)
Stryker’s shares have outperformed the Zacks Medical - Products industry over the year-to-date period (+8.7% vs. -11.0%). The company witnessed strong performance across its segments in the U.S. Strong International sales also buoy optimism.
The momentum is expected to continue into the second half of 2023 on the back of ongoing procedural recovery and a strong order book for capital equipment. Stryker’s prospects in 2023 seem promising on the back of strong customer demand for its existing products as well as new launches. The company’s guidance for earnings and revenues appears encouraging. A solid solvency position is a plus.
However, inflationary pressure and supply-chain challenges continue to hamper Stryker. Stiff competition in the MedTech space remains. Contraction in both gross and operating margin is a concern.
(You can read the full research report on Stryker here >>>)
Shares of Enbridge have underperformed the Zacks Oil and Gas - Production and Pipelines industry over the past year (-9.9% vs. +6.2%). The company’s significant debt exposure is concerning. Also, increasing gas distribution costs coupled with rising operating costs is hurting the company's bottom line. As such, the stock warrants a cautious stance.
Nevertheless, Enbridge has the longest oil and liquid pipeline system in the world, which spreads across 17,809 miles. Hence, a significant portion of the midstream operator’s earnings is generated from transportation operations, driven by a string of long-term contracts.
Moreover, winter gas requirements will boost the company’s gas transmission business in the first and fourth quarter of each year. Enbridge has a strong commitment toward returning capital to shareholders.
(You can read the full research report on Enbridge here >>>)
Other noteworthy reports we are featuring today include Suncor Energy Inc. (SU), ON Semiconductor Corp. (ON) and Splunk Inc. (SPLK).
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
Cisco (CSCO) Benefits From Strong Security Products Adoption
Diversified Product Portfolio Drives Stryker's (SYK) Prospects
Enbridge (ENB) to Gain From $19B Midstream Growth Projects
Featured Reports
Suncor Energy (SU) Buoyed by Integrated Business Model
The Zacks analyst believes that Suncor's integrated business model positions it well for strong cash flow generation. However, the company's high oil price sensitivity is a concern.
Strong Automotive End-Market Aids onsemi's (ON) Prospects
Per the Zacks analyst, onsemi benefits from strong demand for its solutions in the automotive as well as industrial end-markets.
Splunk (SPLK) Rides on Portfolio Strength, Capital Influx
Per the Zacks analyst, Splunk's merger with Cisco Systems will likely boost innovation in the cybersecurity domain and facilitate the development of highly resilient AI native digital solutions.
Programs Aid Hexcel Corporation (HXL), Inflation Impacts Woe
Per the Zacks analyst, impressive set of programs tend to boost Hexcel's long-term growth prospects. Yet supply chains, and inflationary pressures still remain a challenge for the stock
Radian Group (RDN) is Set to Grow on New Insurance Written
Per the Zacks analys, Radian is set to grow on new insurance written aided by strong mortgage origination market, higher refinance activity and higher private mortgage insurance penetration rates.
New Upgrades
DENTSPLY's (XRAY) Dental Imaging Platform Aids Topline Growth
Per the Zacks analyst, DENTSPLY's computer-aided CAD/CAM dental imaging platform is likely to drive the prospect of the company as the market is expected to grow at CAGR of 9.3% till 2030.
Newell (NWL) Gains on Productivity & Cost Savings Plans
Per the Zacks analyst, Newell has been accelerating fuel productivity plans, driving automation and implementing Project Ovid. Also, cost-cutting plans such as rightsizing overhead costs bode well.
New Downgrades
Stiff Rivalry, Margins Woes Impede Walgreens' (WBA) Growth
The Zacks analyst is worried about Walgreens' facing headwinds in the form of increased competition and tough industry conditions. Slowdown in generic introduction has been affecting its margins.
Jack Henry & Associates (JKHY) is Hurt by Mounting Expenses
Per the Zacks analyst, Jack Henry is suffering from rising headcounts and personnel costs, and growing expenses related to the card processing platform, which are weighing on its margin expansion.
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Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
Stryker Corporation (SYK) : Free Stock Analysis Report
Suncor Energy Inc. (SU) : Free Stock Analysis Report
Enbridge Inc (ENB) : Free Stock Analysis Report
Splunk Inc. (SPLK) : Free Stock Analysis Report
ON Semiconductor Corporation (ON) : Free Stock Analysis Report
