Top Stock Reports for Apple, Adobe & Canadian National
Monday, March 19, 2018
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), Adobe (ADBE) and Canadian National (CNI). 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 are up +25.8% in the last year, outperforming the S&P 500 (up +16.2%) and the Zacks Technology sector (up +23.6%). The company is benefiting from iPhone X’s higher average selling price (ASP). The Services segment has become the new cash cow of the company.
Going forward, the Zacks analyst thinks Apple’s foray into fast-growing technologies like autonomous vehicle, artificial intelligence (AI) & AR/VR will drive growth. Moreover, Apple’s new investment plan will boost its subscription-based services business and put an end to the criticism it is facing for not creating enough jobs in the United States.
Apple is reportedly developing its own next-generation MicroLED screens, which will reduce its dependency on Asia-based display screen providers. Additionally, impressive cash balance, post-tax reforms, is expected to boost shareholder value. However, the sluggish demand for iPhone X remains a concern amid intensifying competition.
(You can read the full research report on Apple here >>>).
Shares of Buy-rated Adobe have gained +78.6% in the last one year, outperforming the Zacks Software industry which has increased +36.1% over the same period. Adobe reported strong fiscal first-quarter results driven by demand for the company’s innovative solutions and growing subscriptions for its cloud application.
Adobe has been making great strides toward establishing its presence in cloud-related software areas such as documents and marketing. Adobe Experience Manager, which enables brands to offer a personalized experience, is also witnessing robust growth.
The Zacks analyst remains optimistic about Adobe’s market position, compelling product lines, continued innovation, solid adoption of Creative Cloud and Adobe marketing cloud. However, end-market recovery appears slow, which remains a matter of concern.
(You can read the full research report on Adobe here >>>).
Canadian National’s shares have gained +2.2% over the last one year, underperforming the Zacks Rail industry which gained +19.4% over the same period. The company has also underperformed Canadian Pacific Railway’s shares that have gained 21.5% in the same time period. In fact, the company has been facing a number of challenges related to network congestion recently, which have hurt its operational performance.
These operational issues might affect its customer base, thus adversely impacting company’s growth prospects. The company announced a change at the helm in order to primarily address the service issues. Deterioration in operating ratio due to high labor and fuel costs also does not bode well for the stock.
Moreover, Canadian National’s high debt levels remain potent threats. However, overall volume growth backed by impressive performances at some of its key units is encouraging. The Zacks analyst is also impressed by the 10% dividend hike announced by the company in January 2018.
(You can read the full research report on Canadian National here >>>).
Other noteworthy reports we are featuring today include Roche (RHHBY), Kellogg (K) and Delta Air Lines (DAL).
More Stock News: This Is Bigger than the iPhone!
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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
Robust Portfolio, MicroLed Investment to Drive Apple (AAPL)
Adobe's (ADBE) Solid Creative Cloud Business Drives Growth
Volume Growth Aids Canadian National (CNI) Amid Service Woes
Featured Reports
Vulcan's (VMC) Buyout Drive Strong, Inclement Weather Hurts
The Zacks analyst stresses that Vulcan's systematic inorganic strategy for expansion are encouraging. However, seasonal influences on construction activity weighs on the company's performance.
Expanding Market Aids First Solar (FSLR), Trump Policies Ail
Per the Zacks analyst, expanding global solar market is boosting First Solar's growth prospects. But Trump's decision to repeal Clean Power Plan and withdrawal from Paris accord are concerns.
Solid CapEx Plan, Cash Reserve Aid CenterPoint Energy (CNP)
Per the Zacks analyst, solid investment initiatives will help CenterPoint Energy to upgrade infrastructure and improve reliability. Its solid cash position enables it to make such huge investments.
Delta (DAL) Buoyed by Unit Revenue Growth, High Costs Ail
The Zacks analyst likes Delta's performance with respect to unit revenues. Efforts to reward shareholders are also encouraging.
Kidney Care Segment Boosts DaVita's (DVA) Prospects
The Zacks analyst is bullish on DaVita's impressive results from the Kidney Care business lately.
ABM Industries (ABM) Rides on Portfolio Rationalization
Per the Zacks analyst, ABM remains focused on driving sustainable profitability by effectively allocating resources to high margin services and business verticals with a strong competitive edge.
Acquisitions Aid Acadia Healthcare's (ACHC) Revenue Growth
Per the Zacks analyst, Acadia Healthcare has been emphasizing on acquisitions for expedited growth.
New Upgrades
New Approvals & Label Expansion of Drugs Boost Roche (RHHBY)
Per the Zacks analyst, new drug approvals like Hemlibra and label expansion of key drugs, Perjeta, Tecentriq and Alecensa should drive growth for Roche and help it combat the threat from biosimilars.
Arisure System & oXIRIS set CRRT Launch Aid Baxter (BAX)
The Zacks analyst is bullish on Baxter's launch of the Arisure Closed System Transfer device and oXIRIS set for continuous renal replacement therapy (CRRT) in Europe, Middle East and Africa.
Loan Growth Along With Higher Rates To Aid JPMorgan (JPM)
Per the Zacks analyst, JPMorgan's net interest income as well as net interest margin is expected to improve further given the continued rise in interest rates along with steady loan growth.
New Downgrades
Unfavorable Client Mix, Lower Retention Hurts Paychex (PAYX)
Paychex's client mix is skewing toward smallcompanies where intense competition has pressurized payroll margins, making it difficult to retain clients. This is a major concern for the Zacks analyst.
Kellogg (K) Sales Struggle Amid Soft U.S. Market
Kellogg has been struggling to raise sales with 2017 net sales declining 2.6% due to weak demand in its developed cereals market and U.S. snacks businesses, per the Zacks analyst.
Higher Input Costs, R&D Spend Hurt Lincoln Electric (LECO)
Per the Zacks analyst, raw material inflation and higher year-over-year R&D spending will dent Lincoln Electric's margins.
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Roche Holding AG (RHHBY) : Free Stock Analysis Report
Kellogg Company (K) : Free Stock Analysis Report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
Canadian National Railway Company (CNI) : Free Stock Analysis Report
Adobe Systems Incorporated (ADBE) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
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