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Top Stock Reports for Starbucks, Medtronic & Monsanto

Mark Vickery
Top Stock Reports for Starbucks, Medtronic & Monsanto

Wednesday, September 6, 2017

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 Starbucks (SBUX), Medtronic (MDT) and Monsanto (MON). 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 >>>

Starbucks’ shares are up +0.6% year to date, underperforming the Zacks Food & Restaurants industry, which is up +8.1% over the same period. But the Zacks analyst likes Starbucks’s operating fundamentals such as solid global retail footprint, successful innovations, best-in-class loyalty program and digital offerings.

Again, digital initiatives like mobile order/pay, delivery services and third-party loyalty partnerships can stimulate stronger sales trends in the Americas. CPG growth across the world as well as China/Asia expansion will also lead to value creation.

However, incremental in spending is likely to create pressure on its bottom line in the near term. Also, economic, geopolitical and consumer headwinds continue to impact Starbucks' results.

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

Shares of Medtronic have underperformed the Zacks Medical Products industry over the last three months, losing -6.7% vs. a 0.3% gain. Apart from displaying successful integration and achievement of synergy targets, Medtronic’s major business groups continue to contribute to top-line growth which highlighted sustainability across all segments and geographies.

The stabilizing trend in the global Cardiac Rhythm & Heart Failure (CRHF) market is another upside. The Zacks analyst likes the solid growth trend in the U.S. as well as the healthy global acceptance of its advanced therapies. However, escalating costs and expenses are weighing on margins. Also, unfavorable foreign exchange continues to remain a drag.

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

Buy-rated Monsanto’s shares have outperformed the Zacks Agricultural Products industry over the last one year, gaining +12% vs. +9%. Increasing demand for crop-yield enhancing products, such as Roundup Ready 2 Xtend Soybeans, and launch of non-imitable technological solutions are likely to boost the company's top-line performance.

Further, robust top-line performance, higher planted acreage, as well as lower U.S. corn and soybean costs are expected to bolster bottom-line results in the near term. Also, the successful accomplishment of Bayer's buyout deal is anticipated to open up a number of opportunities for Monsanto.

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

Other noteworthy reports we are featuring today include Crown Castle (CCI), Halliburton (HAL) and Sprint (S).

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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

Starbucks' (SBUX) Product Innovations Fighting Soft Sales


Medtronic (MDT) Strong on Steadying CHRF Space, New Launches


Monsanto (MON) to Grow on Bayer's Buyout Deal & Innovations


Featured Reports

Aqua America (WTR) Gains from Customer Additions, Rate Hike

The Zacks analyst believes Aqua America continues to gain from rate hikes and customers addition from organic growth and acquisitions.

Robust North American Land Drilling Boosts Halliburton (HAL)

While appreciating strong growth in North American land revenue, the Zacks analyst remains concerned over the slowdown in Middle East stimulation services.

Sprint (S) Set to Grow on Prepaid Unlimited Offerings

Per the Zacks analyst, Sprint is poised to boost its prepaid market share and lure customers from rival carriers through its attractive promotional plans and lucrative discounts.

Stiff Competition Mars Demand for Amphenol's (APH) Products

Per the Zacks analyst, severe pricing pressure from competitors and intricate products with high technology obsolescence negate the improved end-market demand and holistic growth model of Amphenol.

AMETEK (AME) Battered by FX Volatility; Integration Issues

Despite gains through the Mocon acquisition, the Zacks analyst thinks increasing fluctuations in foreign currency rates and integration issues will hurt AMETEK's profitability.

UBS (UBS) Focused on Improving Efficiency, Legal Costs a Woe

Per Zacks analyst, UBS Group plans to improve operating efficiency by achieving several financial targets. Yet, exposure to several legal matters might keep litigation costs elevated in the near-term.

Diversification into Fiber Network Boosts Crown Castle (CCI)

Per the Zacks analyst, Crown Castle's efforts to diversify into the tower business from being a fiber provider is impressive.

New Upgrades

Hasbro (HAS) Strong on Product Launches & Gaming Portfolio

Per the Zacks analyst, launch of NERF NITRO and products allied to new theatrical releases along with increased focus on building efficient gaming portfolio poise Hasbro well for steady growth ahead.

Strategy for 2020 to Augment Lululemon's (LULU) Top-Line

Per the Zacks analyst, Lululemon's top-line is gaining from its 2020 strategy. The plan focuses on product innovation, digital growth, enhancing North American store base and international expansion.

Recovering Group Protection Unit Aids Lincoln National (LNC)

The Zacks analyst thinks favorably of the company's recovering Group Protection unit which has witnessed strong sales growth and contributed meaningfully to the company's top line.

New Downgrades

Theravance (TBPH) Overdependent on Vibativ for Revenue

Per the Zacks analyst, Theravance's overdependence on Vibativ, for growth is concerning. Furthermore, the U.S. labeling for Vibativ contains a boxed warning, which could limit its sales potential.

Weak Nitrogen Fertilizer Prices Hurt CVR Partners (UAN)

The Zacks analyst is concerned about CVR Partners' exposure to weak nitrogen fertilizer prices which will put pressure on its bottom line. It also faces intense price competition.

Semtech (SMTC) Grapples with Competition, Pricing Pressure

Per the Zacks analyst, mounting competition in the semiconductor space and resultant pricing pressure will continue to weigh on Semtech's margins and profitability.


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Starbucks Corporation (SBUX) : Free Stock Analysis Report
 
Sprint Corporation (S) : Free Stock Analysis Report
 
Monsanto Company (MON) : Free Stock Analysis Report
 
Medtronic PLC (MDT) : Free Stock Analysis Report
 
Halliburton Company (HAL) : Free Stock Analysis Report
 
Crown Castle International Corporation (CCI) : Free Stock Analysis Report
 
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