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Tuesday, June 15, 2021
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 salesforce.com (CRM), Shopify (SHOP), and AstraZeneca (AZN). 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 Salesforce have underperformed the Zacks Computer Software industry in the year-to-date period (+10.7% vs. +15.9%), but the Zacks analyst sees the company as well positioned to benefit from a robust demand environment as customers are undergoing a major digital transformation.
Moreover, the recent deal to acquire Slack would position the company to be a leader in enterprise team collaboration solution space and better compete with Microsoft’s Teams product. However, unfavorable currency fluctuations along with increasing investments in international expansions and data centers are an overhang on the near-term profitability.
(You can read the full research report on salesforce here >>>)
Shopify shares have gained +14.3% over the last six months against the Zacks Internet Services industry’s gain of +27.2%, reflecting the market's skepticism about the company's outlook in the post-pandemic world.
An uptick in Shopify Shipping, Shopify Payments and Shopify Capital has consistently driven the top line. Additionally, partnerships with TikTok, Walmart and Facebook are likely to expand merchant base. However, higher investments on product development amid stiff competition in the e-commerce space will limit margin expansion in the near term.
(You can read the full research report on Shopify here >>>)
Shares of AstraZeneca have gained +17.2% in the past three months against the Zacks Large Cap Pharmaceuticals industry’s gain of +9.7%. The Zacks analyst believes that AstraZeneca’s products like Nexium and Seroquel are facing generic competition, which are weighing on its sales.
However, newer drugs such as Tagrisso and Imfinzi are likely to keep driving revenues. The company also has a strong pipeline with a spate of phase III data readouts lined up for the current year. It has also engaged in external acquisitions and strategic collaborations to boost its pipeline while investing in high growth geographic areas like China.
(You can read the full research report on AstraZeneca here >>>)
Other noteworthy reports we are featuring today include Prologis (PLD), Micron Technology (MU) and Ecolab (ECL).
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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
Digital Transformation and Acquisitions Aid Salesforce (CRM)
Product Rollouts & Growing Merchant Base Aid Shopify (SHOP)
Cancer Drugs Push AstraZeneca's (AZN) Sales, Pipeline Solid
E-commerce Adoption, High Inventory to Aid Prologis (PLD)
Per the Zacks analyst, fast adoption of e-commerce and higher inventory levels are expected to drive demand for Prologis' assets.
Micron (MU) Benefits from Growing Memory-Chip Demand
Per the Zacks analyst, Micron is growing on solid memory-chip demand from PC manufacturers and data-center operators as the COVID-19 pandemic has boosted the work-and-learn-from-home trend.
Global Healthcare and Life Sciences Unit Aids Ecolab (ECL)
Per the Zacks analyst, strength in core Global Healthcare and Life Sciences segment owing to coronavirus-related demand in these business lines aid Ecolab.
Business Restructuring, Solid Balance Sheet Aid MetLife (MET)
Per the Zacks analyst, separation of many low return businesses and acquisition of targeted business have enabled focus on core areas; its strong capital position aids strategic investments.
Las Vegas Sands (LVS) Rides on Macao Business Amid Pandemic
Per the Zacks analyst, Las Vegas Sands' planned investment in new capital projects in Macao will drive growth.
Hess (HES) Banks on Oil-Rich Offshore Guyana Discoveries
World-class discoveries in offshore Guyana resources have brightened the production outlook for Hess. However, the upstream firm's significant debt exposure concerns the Zacks analyst.
High Margin Assets & Cost Management Aid Devon Energy (DVN)
Per the Zacks analyst, Devon's strong production from high margins assets and efficient cost management will drive its performance over the long run.
Truly Brand Investments to Shape Boston Beer's (SAM) Growth
Per the Zacks analyst, Truly brand witnessed significant market share growth in the measured off-premise channel in Q1, outpacing the hard seltzer category. The brand is likely to lead growth in 2021.
Ryder's (R) Top Line Gains Traction From Freight Recovery
The Zacks analyst appreciates the company's efforts to reward its shareholders. Moreover, healthier freight market conditions are aiding Ryder's performance.
Improving Markets & Pricing Actions to Aid Greif (GEF)
The Zacks analyst believes that Greif will benefit from improvement in many of its key markets. Pricing actions to combat inflated costs and its ongoing restructuring activities will aid margins.
Near-Zero Interest Rates, Elevated Costs Hurt Schwab (SCHW)
Per the Zacks analyst, near-zero interest rates are expected to continue putting pressure on Schwab's margins, thus hurting the top line. Persistently rising expenses might hamper bottom-line growth.
Inorganic Growth Aids, High Costs Hurt HCA Healthcare (HCA)
Per the Zacks analyst, a number of strategic acquisitions have strengthened its portfolio and added to its scale, thereby leading to overall growth. However, escalating expenses remain a concern.
Rate Increase Aid First American (FAF), Rising Costs Concern
Per the Zacks analyst, First American is set to grow on the strength in commercial business and demand among millennials for first-time home purchases. However, rising costs and high debt level ail.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Shopify Inc. (SHOP) : Free Stock Analysis Report
Prologis, Inc. (PLD) : Free Stock Analysis Report
Micron Technology, Inc. (MU) : Free Stock Analysis Report
Ecolab Inc. (ECL) : Free Stock Analysis Report
salesforce.com, inc. (CRM) : Free Stock Analysis Report
AstraZeneca PLC (AZN) : Free Stock Analysis Report
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