Top Stock Reports for ServiceNow, Caterpillar & Starbucks
Friday, November 3, 2023
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 ServiceNow, Inc. (NOW), Caterpillar Inc. (CAT) and Starbucks Corporation (SBUX). 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 ServiceNow have outperformed the Zacks Computers - IT Services industry over the year-to-date period (+55.5% vs. +18.4%). The company has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation. It had 1789 total customers with more than $1 million in annual contract value at the end of the third quarter.
ServiceNow has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation. Security and risk had a terrific quarter with ten deals of more than $1 million. Employee workflows had a stellar quarter, with seven deals over $1 million and one deal over $10 million.
It is benefiting from strong demand for its generative AI-powered solutions with the launch of Vancouver. Nevertheless, ServiceNow is suffering from high inflation, stiff competition, and challenging macro-economic environment.
(You can read the full research report on ServiceNow here >>>)
Caterpillar shares have outperformed the Zacks Manufacturing - Construction and Mining industry over the year-to-date period (+3.4% vs. +1.6%). The company’s revenues and earnings have grown year over year for eleven straight quarters thanks to its cost-saving actions, strong end-market demand and pricing actions, which offset the impact of the supply-chain snarls and cost pressures.
The Construction Industries segment is expected to benefit from the rising construction activities in the United States and other parts of the world. Backed by demand for commodities fueled by the energy-transition trend, a thriving mining sector will aid the Resource Industries segment.
The Energy & Transportation segment remains well-poised for growth, backed by strong demand across all applications. Its dividend yield and payout ratio are higher than its peers. A strong liquidity position, investments in expanding services and digital initiatives will help Caterpillar deliver outsized returns.
(You can read the full research report on Caterpillar here >>>)
Shares of Starbucks have outperformed the Zacks Retail - Restaurants industry over the year-to-date period (+5.0% vs. +3.7%). The company’s uptrend is attributable to robust North America and International sales accompanied by sales leverage initiatives, robust new store growth and new equipment installments and enhancements.
Additionally, digital and product innovation, and supply-chain modernization added to the growth momentum. Also, the opening of China Coffee Innovation Park in September 2023 sparked the company’s business prospects in China. Earnings estimates for fiscal 2024 have increased in the past 30 days. However, high costs and economic risks are concerning.
(You can read the full research report on Starbucks here >>>)
Other noteworthy reports we are featuring today include Vale S.A. (VALE), Arthur J. Gallagher & Co. (AJG) and PG&E Corporation (PCG).
Director of Research
Sheraz Mian
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
Growing Customer Base & Partnerships Aid ServiceNow (NOW)
Caterpillar (CAT) to Gain on Strong Demand in End Markets
Starbucks (SBUX) Banks on Solid Store Growth Amid High Costs
Featured Reports
Investments, Cost Cuts Aid Vale (VALE) Amid Price Volatility
Per the Zacks analyst, investment in growth projects, focus on improving quality and productivity and lowering costs will fuel Vale's growth in the backdrop of volatile iron ore prices.
Improving Fees and Commissions Aid Arthur J. Gallagher (AJG)
Per the Zacks analyst, Arthur J. Gallagher is poised to grow on improving fees and commissions that in turn is driving organic revenues growth. However, rising expenses weighing on margin concerns.
Solid Investments Aid PG&E Corp (PCG), Weak Solvency Woes
Per the Zacks Analyst, solid capital expenditures in infrastructure bode well for PG&E Corp in the long haul. Yet, its weak solvency position remains a bottleneck
Edwards (EW) Rides on Robust TMTT Sales, FX Impacts Stay
The Zacks Analyst is impressed with Edwards' TMTT arm gaining from the strong uptake of the PASCAL Precision platform, new centers' openings and procedure growth. Yet, FX woes hurt the gross margin.
Credit Card Business Aids Capital One (COF) Amid Cost Woes
Per the Zacks analyst, Capital One's solid card and online banking business, along with its inorganic growth efforts will aid revenues. Elevated costs due to rise in marketing costs will hurt profits.
Electronic Arts (EA) Banks on Strong Portfolio, User Addition
Per the Zacks Research analyst, expanding user base driven by strength in popular franchises including FIFA and Madden NFL is aiding Electronic Arts' top-line amid stiff competition.
Ayvakit Sales Boosts Blueprint (BPMC), High Dependence a Woe
Per the Zacks Analyst, BPMC has been witnessing increased growth in Ayvakit sales, following label expansion in the U.S. market. However, high dependency on Ayvakit for revenue generation is a woe.
New Upgrades
Pinterest (PINS) Rides on Solid User Growth, Enhanced Ad Tools
Per the Zacks analyst, improved personalization driven by AI-native browsing features and advancement in ad formats will likely foster deeper brand-customer engagement and boost Pinterest's margins.
Skechers (SKX) Gains From Solid Demand With Strength in DTC
Per the Zacks analyst, the impressive performance of Skechers' direct-to-consumer (DTC) business unit, driven by robust demand for comfort technology footwear products, will continue to lend momentum.
Antero Midstream (AM) Banks on Stable Fee-Based Revenues
Per the Zacks analyst, Antero Midstream's Marcellus Shale presence and long-term contracts for midstream services will pave the way for consistent cash flows.
New Downgrades
Rising Interest Rates to Hit SunPower's (SPWR) Bookings
Per the Zacks analyst, rising interest rates have led to increased solar installation expenses thereby impacting bookings for SunPower. This in turn may hurt its future revenue growth.
J. B. Hunt (JBHT) Continues to Grapple With Segmental Weakness
The Zacks Analyst is worried about the fact that lower revenue across all business segments, higher equipment-related costs, and higher insurance and claims expenses weigh on J. B. Hunt's results.
Weak Laboratory Segment Hurts Mettler-Toledo's (MTD) Growth
Per the Zacks analyst, Mettler-Toledo is suffering from sluggishness in laboratory segment. Further, weakening momentum in Europe remains a concern.
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Caterpillar Inc. (CAT) : Free Stock Analysis Report
Pacific Gas & Electric Co. (PCG) : Free Stock Analysis Report
Starbucks Corporation (SBUX) : Free Stock Analysis Report
VALE S.A. (VALE) : Free Stock Analysis Report
Arthur J. Gallagher & Co. (AJG) : Free Stock Analysis Report
ServiceNow, Inc. (NOW) : Free Stock Analysis Report
