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Top Stock Reports for Apple, Home Depot & Sanofi

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Thursday, June 17, 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 Apple (AAPL), The Home Depot (HD), and Sanofi (SNY). 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 Apple have underperformed the S&P 500 in the year-to-date period (-0.8% vs. +13.2%) on persistent worries that the iPhone maker may struggle in the post-pandemic world as demand for its products was pulled forward.

This is a plausible view, but the Zacks analyst believes that Apple should continue to benefit from momentum in the Services segment, driven by App Store, Cloud Services, Music, advertising and AppleCare.

Apple’s near-term prospects are bright, driven by new iPhones that support 5G, revamped iPad and Mac line-up of devices, healthcare-focused Apple Watch, and an expanding App Store ecosystem. Also, its focus on user privacy, as reflected by its latest iOS 15, iPadOS 15, macOS Monterey, and watchOS 8 updates, is a game changer. However, Apple refrained from providing any guidance due to uncertainties triggered by the COVID-19 pandemic.

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

The Home Depot shares have gained +13.4% over the last six months against the Zacks Retail Building Products industry’s gain of +10.1%. The Zacks analyst expects this momentum to continue as the company  executes its One Home Depot plan, which focuses on expanding supply chain, technology investments and digital enhancements.

The company is also effectively adapting to the continued boom in renovations and construction activities, driven by investments in its business over the years. However, increased penetration of lumber products in the company’s sales mix continue to hurt gross margin. Also, continued pressure from shrink and higher transportation costs are major headwinds.

(You can read the full research report on The Home Depot here >>>)

Shares of Sanofi have gained +10.7% in the past three months against the Zacks Large Cap Pharmaceuticals industry’s gain of +10.8%. The Zacks analyst believes that Sanofi’s Specialty Care unit is on a strong footing, particularly with regular label expansion of Dupixent.

Meanwhile, its R&D pipeline is strong and several data readouts are expected in 2021. Further, the 2020 Synthorx and Principia acquisitions have strengthened its R&D pipeline. However, weak performance of the Diabetes unit and generic competition for many drugs remain major headwinds for the company. Meanwhile, the ongoing pandemic has resulted in a slowdown of new patient starts of certain drugs as well as deferral of some vaccinations.

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

Other noteworthy reports we are featuring today include Honeywell International (HON), Applied Materials (AMAT) and CVS Health (CVS).

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Sheraz Mian

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

Robust Portfolio, Services Strength to Benefit Apple (AAPL)

Focus on Pro Customers to Aid Home Depot's (HD) Top Line

Sanofi's (SNY) Drug Dupixent is Key Driver of Sales

Featured Reports

Strong Demand Drives Honeywell (HON), Aerospace Sector Ails

Per the Zacks analyst, solid demand for Honeywell's personal protective equipment & productivity solutions will lend momentum to the company.

Applied Materials (AMAT) Rides on Foundry & Logic Spending

Per the Zacks analyst, solid customer spending in foundry and logic which are required in IoT, communicationsand automotive, power is benefiting Applied Materials.

CVS Health (CVS) Digital Tools Gain Momentum amid the Pandemic

The Zacks analyst is upbeat about CVS Health's consumer-centric digital policy covering services like COVID testing, vaccination, and omnichannel pharmacy.

Sinopec (SNP) Banks on New Discoveries in Tarim Basin

New oil and gas discoveries in the Tarim basin, Sichuan basin, and Bohai Bay basin have brightened Sinopec's production outlook. However, rising exploration expenses concern the Zacks analyst.

Diversified Product Mix Aids Itau (ITUB) Amid Cost Woes

Per Zacks analyst, Itau's (ITUB) diversified portfolio, expansion strategy, and solid liquidity position might support its growth

Accelerating Non-Trading Revenue Base Aids Nasdaq (NDAQ)

Per the Zacks analyst, Nasdaq is set to grow on its focus on Market Technology and Information Services businesses as well as growth from index and analytics businesses.

High Shipments Aids Enphase Energy (ENPH), Valuation Hurts

Per the Zacks analyst, Enphase benefits from the ramp-up in volume shipments. However, a comparative analysis of its historical EV/EBITDA ratio reflects a gloomy picture that might concern investors.

New Upgrades

Strategic Initiatives & Acquisitions Aid Owens Corning (OC)

Per the Zacks analyst, Owens Corning's strategic efforts comprising expansion through acquisitions, investments in process technology to improve manufacturing efficiencies, and reduce costs bode well.

Silicon Motion (SIMO) Rides on Demand for SSD Controllers

Per the Zacks analyst, Silicon Motion is benefiting from higher demand for its SSD controllers as well as eMMC and UFS controllers. Also, recovery in the smartphone market bodes well for the company.

G-III Apparel's (GIII) Digital Business Appears Encouraging

Per the Zacks analyst, G-III Apparel's digital business exhibits strength. The company's own websites generated solid results for DKNY and Karl Lagerfeld Paris, with comparable sales growth of 40%.

New Downgrades

Escalating Costs Irks Insulet (PODD) amid Stiff Competition

The Zacks analyst is worried about Insulet's escalating expenses putting pressure on the bottom line. The competitive and regulatory condition in the markets adds to the woes.

Delivery Costs, Supply Chain Disruptions Weigh on Macy's (M)

Per the Zacks analyst, rising delivery expenses have been a drag on Macy's gross margin, as seen in the first quarter. Also, supply chain disruptions, due to the pandemic, have been a headwind.

Surging Costs & Elevated Debt Levels to Hurt Goodyear (GT)

Rising costs of raw materials, primarily steel, are likely to hurt Goodyear's profitability. High leverage of 63% also restricts the firm's financial flexibility, per the Zacks analyst.

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
Sanofi (SNY) : Free Stock Analysis Report
Honeywell International Inc. (HON) : Free Stock Analysis Report
The Home Depot, Inc. (HD) : Free Stock Analysis Report
CVS Health Corporation (CVS) : Free Stock Analysis Report
Applied Materials, Inc. (AMAT) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
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