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Top Stock Reports for Toyota, NIKE & Honeywell

Sheraz Mian
·7 mins read

Monday, September 14, 2020

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 Toyota Motor (TM), NIKE (NKE) and Honeywell International (HON). 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 >>>

Toyota shares have modestly underperformed the Zacks Foreign Automotive industry in the year to date period (-6.6% vs. -5.8%), reflecting this large global automaker's cyclcial exposure. The Zacks analyst believes that expanding portfolio of product lines is driving Toyota’s prospects.

With the EV trends getting hotter with each passing day, the Japanese auto giant is ramping up efforts to develop green vehicles. It aims to achieve half of its global sales from EVs by 2025. Partnership with Subaru and Mazda are likely to drive Toyota's electrification plans. The firm is also working on hydrogen fuel stations in collaboration with various partners.

However, Toyota expects consolidated vehicle sales of 7.2 million units, indicating a decline from roughly 9 million units recorded in fiscal 2020 amid the coronavirus pandemic crisis. High R&D costs on advanced technologies for the development of EVs and driverless cars are also likely to dent near-term margins. Its high debt levels also remain a concern. As such, the stock warrants a cautious stance.

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

NIKE shares have outperformed the broader market in the year-to-date peirod (+17.2% vs. +3.8% for the S&P 500 Index), with the stock really coming into its own recent days as the broader market has lost some of its mojo. The Zacks analyst credits the company's strong digital performance, which demonstrates the strength of its brands and investments to improve digital consumer experiences.

While store closures across North America, EMEA and APLA impacted results in the June-quarter report, the company benefited from robust double-digit digital sales across all regions. It will be interesting to see if these online sales trends will continue in the coming quarterly report that comes out after the market's close on September 22nd. 

Moreover, the company benefited from Greater China returning to currency-neutral growth in the fiscal fourth quarter as stores in the region resumed operations. Nonetheless, the company reported lower than expected top and bottom line in the fiscal fourth quarter on soft revenues and gross margin due to coronavirus-related impacts.

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

Honeywell shares have gained +1% over the past year against the Zacks Diversified Operations industry’s fall of -0.2%. The Zacks analyst believes that strength in defense and space businesses as well as solid demand for warehouse automation products are likely to boost Honeywell’s revenues in the near term.

Solid demand for personal protective equipment and medical sensors along with a strong backlog conversion rate are likely to act as tailwinds. Increased commercial and operational excellence initiatives are likely to improve its near-term profitability. It is committed to rewarding shareholders handsomely.

The company believes that the coronavirus outbreak-led market downturn and a volatile oil market will adversely impact its near-term results. Given its extensive geographic presence, its business is subject to political, economic and geopolitical issues. Rise in debt levels can increase its financial obligations.

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

Other noteworthy reports we are featuring today include 3M Company (MMM), Advanced Micro Devices (AMD) and Anthem (ANTM).

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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

Toyota (TM) to be Aided by Collaboration With Mazda & Subaru

NIKE's (NKE) Digital Business to Aid Sales in the Near Term

Intelligrated Unit Drives Honeywell (HON), Soft Demand Hurts

Featured Reports

Products & Cost Savings to Aid 3M (MMM) Amid Pandemic Woes

Per a Zacks analyst, 3M's (MMM) cost-reduction actions have been beneficial in reducing the prevalent pandemic-related burdens.

AMD Rides on Robust 7 nm Product Portfolio & Partnerships

Per the Zacks analyst, Advanced Micro Devices is benefiting from strong adoption of latest 7 nm based EYPC and Ryzen processors.

Anthem (ANTM) Rides on Improving Top Line Amid High Costs

Per the Zacks analyst, the company's strong premiums, rise in membership, and strategic initiatives have contributed to top-line growth.

Southern Company (SO) Buoyed by Regulated Customer Growth

The Zacks analyst believes that increase in Southern's regulated business customer base will support its revenue growth.

Revenue Growth and Debt-Free Level Aids T. Rowe Price (TROW)

Per the Zacks analyst, organic growth remains a key strength at T. Rowe Price. Also, the company remains debt free with substantial liquidity.

V.F. Corp (VFC) Emerging Brands and Asia Expansion to Aid

Per the Zacks analyst, V.F. Corp plans to fortify foothold in Asia-Pacific, and expand its Emerging Brands portfolio as part of its global business strategy.

Strength in Nasal Mask Suite Aids ResMed (RMD) in Pandemic

The Zacks analyst is upbeat about the launch of ResMed's latest CPAP nasal mask with memory foam cushion, AirTouch N20. Provision of remote care through the company's MaskSelector buoys optimism.

New Upgrades

Corning (GLW) Rides on R&D and Manufacturing Capabilities

Per the Zacks analyst, Corning is well poised to benefit from healthy investments in R&D for product development and scaling up of manufacturing capacities driven by a strong financial foundation.

RH's (RH) Shift to a Membership Business Model Bodes Well

The Zacks analyst stresses that RH's strength of the multi-channel platform and membership model enabled it to engage with customers virtually and not chase demand through promotions.

Casey's (CASY) Grocery & Other Merchandise Unit to Fuel Sales

Per the Zacks analyst, expanded assortment of Grocery & Other Merchandise category are likely to fuel Casey's sales. The segment witnessed same-store sales growth of 3.6% in first-quarter fiscal 2021.

New Downgrades

End Market Weakness continues to Impact Analog Devices (ADI)

The Zacks analyst believes that China slowdown and end- market weakness could continue to impact Analog Devices' growth prospects.

Lower Demand & Higher Costs to Hurt Crown Holdings (CCK)

The Zacks analyst is concerned that bleak demand in the transit packaging business owing to the coronavirus pandemic as well as higher raw material costs will impact Crown Holdings' results.

Rising Energy Costs, Low 737 Deliveries Hurt Hexcel (HXL)

Per the Zacks analyst, greater outsourcing in wind blades manufacturing is resulting in rising cost pressure, thereby hurting Hexcel.


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
 
Toyota Motor Corporation (TM) : Free Stock Analysis Report
 
NIKE, Inc. (NKE) : Free Stock Analysis Report
 
3M Company (MMM) : Free Stock Analysis Report
 
Honeywell International Inc. (HON) : Free Stock Analysis Report
 
Anthem, Inc. (ANTM) : Free Stock Analysis Report
 
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
 
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