U.S. Markets open in 6 hrs 17 mins

Top Stock Reports for Amazon, Boeing & Micron

Mark Vickery

Wednesday, October 30, 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 Amazon.com, Inc. (AMZN), The Boeing Company (BA) and Micron Technology, Inc. (MU). 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 >>>

Amazon’s shares have underperformed the Zacks Internet - Commerce industry on a year to date basis (+17.7% vs. +18.9%). The Zacks analyst believes that rising transportation cost related to its free one-day shipping service remains an overhang and is likely to escalate further. Amazon also expects foreign exchange headwinds to continue impacting the top line.

However, the company did benefit from solid Prime momentum owing to robust grocery services and strong content portfolio. Moreover, Prime Free One Day service helped Amazon in gaining traction across customers. Improving Alexa skills and features remain a major positive, while expanding smart home products offerings remain tailwinds.

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

Boeing’s shares have underperformed the Zacks Aerospace - Defense industry so far this year (+8.0% vs. +21.3%). The Zacks analyst believes that Boeing’s commercial business has suffering due to lower 737 deliveries, following 737 Max product line's grounding and subsequent costs associated with it. Consequently, its revenues, earnings and cash flow position were affected significantly.

However, Boeing still remains the largest aircraft manufacturer globally in terms of revenues, orders and deliveries, and one of the major aerospace and defense contractors. Its proposed joint venture with Embraer is expected to strengthen its commercial business significantly.

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

Micron’s shares have underperformed the Zacks Semiconductor Memory industry on a year to date basis (+50.6% vs. +51.6%). The Zacks analyst believes that higher mix of NAND, which has lower gross margin, falling memory prices and a slow decline in manufacturing cost, is likely to keep Micron’s margins under pressure.

But, Micron is still well-poised to benefit from the resurgence in DRAM demand, backed by a progress in customer inventory adjustments in the cloud, graphics and the PC markets. Moreover, its focus on increasing the mix of high-value solutions in its portfolio is a boon.

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

Other noteworthy reports we are featuring today include National Oilwell Varco, Inc. (NOV), Cooper Tire & Rubber Company (CTB) and Kohl's Corporation (KSS).

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>

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

Amazon (AMZN) Banks on Prime Momentum & Growing AWS Adoption


Strategic Mergers Aid Boeing (BA), Low 737 Deliveries Hurt


Micron (MU) Rides on Recovery in DRAM Demand Amid Trade Woes


Featured Reports

Strong C&P Order Inflows to Boost National Oilwell (NOV)

The Zacks analyst likes the healthy order inflows for National Oilwell's Completion & Production (C&P) unit but is concerned over the decline in Rig Technologies segment's capital equipment sales.

Cooper Tire (CTB) to Gain From Sailun JV Amid Rising Costs

Per the Zacks Analyst, Cooper Tire & Rubber will expand and diversify its TBR tire production with a JV with Sailun. Yet, high raw-material costs amid trade war issues might dent profit margins.

E-Commerce Initiatives Likely to Improve Kohl's (KSS) Sales

Kohl's is focused on e-commerce efforts like expanding fulfilment centers and improving online assortments. Per the Zacks analyst, these are likely to aid digital sales, which rose in second quarter.

Growing Topline Aids Marsh & McLennan (MMC), Expenses Hurt

Per the Zacks analyst, its increasing topline driven by product offerings, geographic expansion and acquisitions has led to significant growth.

Chronic Care & Pain Arm Aids Avanos (AVNS), Acute Pain Ails

Avanos has been gaining from solid prospects of its Chronic Care and Pain Management business per the Zacks Analyst.

Terminal Throughput Volumes Aid Phillips 66 Partners (PSXP)

Phillips 66 Partners continues to gain on rising terminal throughput volumes of refined petroleum products. However, the partnership's declining crude transportation volumes concern the Zacks analyst.

Capa Acquisition Aids Ingevity (NGVT), Weak Demand Ails

While Ingevity faces headwind from soft industrial demand across Europe and Asia, the Capa caprolactone acquisition will drive its revenues and earnings, per the Zacks analyst.

New Upgrades

Gibraltar (ROCK) Top Line to Ride on Operational Excellence

Per the Zacks Analyst, the four-pillar value creation strategy that includes operational excellence, product innovation, portfolio management & buyouts is likely to drive Gibraltar's top-line growth.

Leasing, Occupier Outsourcing Business Aid CBRE Group (CBRE)

Per the Zacks Analyst, CBRE Group will gain from improving occupier outsourcing business, leasing and strategic acquisitions. Also, digital and technology investments will give it a competitive edge.

Growth in Alkermes' (ALKS) Proprietary Products Impressive

Per the Zacks analyst, Alkermes' proprietary products, Aristada and Vivitrol, have shown impressive growth trend in the first nine months of 2019. This has improved the company's topline.

New Downgrades

Trinity (TRN) Hit by Decelerating Railcar Demand & Debt Load

Trinity lowers its projection for 2019 railcar deliveries due to unfavorable conditions in the rail equipment market. The Zacks analyst is also concerned about its escalated debt levels.

Rogers Communications (RCI) Hurt By Weak Media Revenues

Per the Zacks analyst, Rogers Communications is hurt by softness in advertising market that is negatively impacting media revenues.

NETGEAR (NTGR) Marred by Waning Sales at Connected Home Unit

Per the Zacks analyst, softness in NETGEAR's Connected Home business segment due to headwinds in Europe, Middle East and Africa, and Asia Pacific continues to negatively impact its overall revenues.


undefined undefined
 
National Oilwell Varco, Inc. (NOV) : Free Stock Analysis Report
 
Micron Technology, Inc. (MU) : Free Stock Analysis Report
 
Kohl's Corporation (KSS) : Free Stock Analysis Report
 
Cooper Tire & Rubber Company (CTB) : Free Stock Analysis Report
 
The Boeing Company (BA) : Free Stock Analysis Report
 
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research