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Top Stock Reports for Apple, NVIDIA & Lockheed Martin

Mark Vickery
Top Stock Reports for Apple, NVIDIA & Lockheed Martin

Wednesday, July 11, 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), NVIDIA (NVDA) and Lockheed Martin (LMT). 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 >>>

Buy-ranked Apple’s shares have gained +12.5% year to date and have outperformed the broader market with the S&P 500 gaining +4.7% over the same period. The Zacks analyst thinks Apple's Services segment has become the new cash cow for the company.

The segment is expected to grow strongly driven by increasing adoption of Apple Music & Apple Pay. Further, the higher ASP of iPhone X is also expected to boost the top-line growth. Going ahead, Apple’s foray into fast-growing technologies like autonomous vehicle, artificial intelligence (AI) & AR/VR will drive growth.

Nevertheless, lower shipments of iPhone X units due to lack of demand can hurt top-line, particularly due to significant competition in most of its operating markets. The rise of feature-rich smartphones at a much cheaper price also remains a major headwind.

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

Shares of NVIDIA have surged year to date, gaining +30.9% versus the Zacks General Semiconductor industry’s +16.4% gain. The Zacks analyst thinks the company’s sustained focus on the development of innovative products for the gaming, datacenter and automobile sectors is a key growth driver.

Partnerships with companies like Baidu, Daimler and Bosch act as tailwinds. Higher adoption of NVIDIA’s Volta processors will likely act as a catalyst in the near term. Estimates have been stable lately ahead of the company’s Q2 earnings release.

The company has positive record of earnings surprises in recent quarters. Nonetheless, recent developments like suspension of test drives for all its driverless vehicles and a likely sluggish demand from cryptocurrency miners makes us slightly cautious about its near-term performance.

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

Buy-ranked Lockheed Martin’s shares have gained +7.8% over the last year, underperforming the Zacks Aerospace Defense sector, which has gained +30% over the same period. Being the largest defense contractor in the world, Lockheed Martin experiences strong demand for high-end military equipment in domestic markets.

Lockheed Martin’s products are also well acclaimed in the international market. Consequently, strong order growth has been a primary growth driver for this company. Lockheed Martin continues to be a strong cash generator, helping it to take important cash deployment decisions.

The Zacks analyst thinks recent adoption of expansionary budgetary policies in the United States will immensely boost this defense prime's business growth. However, the company faces intense competition for its broad portfolio of products and services in both domestic and international markets.

(You can read the full research report on Lockheed Martin here >>>).

Other noteworthy reports we are featuring today include Duke Energy (DUK), Intercontinental Exchange (ICE) and Johnson Controls (JCI).

More Stock News: This Is Bigger than the iPhone!

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Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

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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 iPhone X ASP, Services Strength Drives Apple (AAPL)

NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships

Cash Flows, Robust Order Growth Aids Lockheed Martin (LMT)

Featured Reports

Whiting Petroleum (WLL) Riding on Robust Bakken Output

The Zacks analyst is impressed by Whiting Petroleum's top-tier acreage in the Bakken shale play, which has been boosting its production growth and helping in strong cash-flow generation.

Dividends & Buybacks Aid Allegiant (ALGT) Amid Safety Woes

The Zacks analyst likes the company's efforts to reward shareholders through dividends and buybacks. Increased costs and safety-related issues, however, raise concerns.

Fleet Upgrade Buoys JetBlue (JBLU) Amid Cost Woes

The Zacks analyst likes the company's efforts to modernize its fleet. Initiatives to reduce debt levels are also encouraging.

Product and Service Lines to Aid Intercontinental (ICE)

Per the Zacks analyst, Intercontinental Exchange's focus on boosting its strong product and service lines will continue to contribute to top-line growth.

Johnson Controls (JCI) Rides on Increased Overseas Orders

Per the Zacks analyst, higher demand for HVAC & Controls products, generated from increased orders in Asia, the Middle East, and North America, is adding to its sales.

Focus on Lifestyle Protection Business Aids Assurant (AIZ)

Per the Zacks analyst, strategic initiatives in Lifestyle Protection like merging e-commerce capabilities into operations should aid Assurant.

American Public (APEI) Rides on Program & Digital Innovation

Per the Zacks analyst, initiatives to boost enrollment by strengthening its brand, adding new programs and robust digital campaigns are encouraging.

New Upgrades

Boston Beer's (SAM) Three-Point Growth Plan Bodes Well

Per the Zacks analyst, Boston Beer's three-point growth plan focused on revival of Samuel Adams and Angry Orchard brands, cost saving initiatives and innovation bodes well for long-term growth.

Growth in Assets Support Cohen & Steers (CNS) Revenues

Per the Zacks analyst, growth in assets under management will continue driving Cohen & Steers' top line. Also, diverse product offerings and investment strategies are expected to attract investors.

Solid Growth in Business-to-Business Unit Aids Inogen (INGN)

Inogen gains ground on solid growth in business-to-business segment. The Zacks analyst is also bullish about surging sales in the direct-to-consumer business unit.

New Downgrades

Environmental Rules, Commodity Prices Hurt Duke Energy (DUK)

Per the Zacks analyst, rigid environmental rules and compliance cost may hinder company's performance. Potential volatility in market prices of fuel and electricity could create operational risks.

Plan to Shift Production Adds to Harley's (HOG) Rising Costs

Per the Zacks analyst, Harley's plan to shift motorcycle manufacturing from the U.S. to international hubs to serve EU countries requires facility improvements, thus, leading to increased costs.

Escalating Expenses Continue to Hurt Nasdaq (NDAQ)

Per the Zacks analyst, rising expenses, mainly due to the development and diversification of its business, will continue to restrict Nasdaq's operating margin expansion.

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NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
Johnson Controls International plc (JCI) : Free Stock Analysis Report
Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report
Duke Energy Corporation (DUK) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
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