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The Zacks Analyst Blog Highlights: Intel, Adobe Systems, Mondelez International, Morgan Stanley and Arista Networks

Zacks Equity Research

For Immediate Release

Chicago, IL – September 16, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Intel INTC, Adobe Systems ADBE, Mondelez International MDLZ, Morgan Stanley MS and Arista Networks ANET.

Here are highlights from Friday’s Analyst Blog:

Top Analyst Reports for Intel, Adobe and Mondelez

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 Intel, Adobe Systems and Mondelez International. 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 >>>

Intel’s shares have outperformed the Zacks General Semiconductor industry over the past three months (3% vs. 2.5%). The Zacks analyst thinks that Intel is benefiting from rising demand witnessed in its higher performance products, both in data center and client domains.

Moreover, synergies from the Mobileye acquisition and growing clout in ADAS market favor the company’s growth prospects. Further, Intel’s strategy of expanding TAM beyond CPU to adjacent product lines like silicon photonics, fabric, network ASICs and 3D XPoint memory is yielding results. Moreover, the launch of new 10 nm technology-based AI chip, Springhill, holds promise. Notably, shares of the company have outperformed the industry in the past year.

However, weakness in demand from China and softness in NAND flash pricing trends, expenses pertaining to 10-nanometer (nm) ramp up and constrained supply remain major concerns. Moreover, intensifying competition and pricing pressure from AMD remains a headwind.

Shares of Adobe have gained 3.8% in the past six months, outperforming the Zacks Software industry’s rise of 11.4%. The Zacks analyst believes that Adobe's strong demand for its creative products are driving its top-line growth. Also, the company’s Adobe Document Cloud and Adobe Experience Cloud products, along with growing subscription for cloud application are positives.

The company has been making great efforts toward establishing its presence in cloud-related software areas such as documents and marketing. We remain optimistic about Adobe’s market position, compelling product lines, continued innovation, solid adoption of Creative Cloud and Adobe marketing cloud.

However, lower end-market demand and exposure to Europe remain as overhangs. Further, high acquisition expenses do not bode well for the company's margin expansion.

Mondelez’s shares have gained 36.9% year to date, outperforming the Zacks Food Preparation industry’s rise of 16.3% over the same period.

The Zacks analyst believes that the company is steadily gaining from strategic pricing endeavors. In fact, during the second quarter of 2019, balanced pricing and volume/mix aided organic revenues to rise 4.6%. Additionally, it is progressing well with saving efforts. Mondelez also focuses on brand building through innovation and acquisitions.

It recently completed the buyout of minority stakes in Perfect Snacks. This, along with investments in Hu Master and Uplift Foods, indicates the company’s efforts to boost healthy offerings. It is also bolstering presence in the emerging regions.

However, the company grapples with adverse currency movements, which dented top-line performance during the second quarter. Management expects currency fluctuation to be a drag in 2019. Further, high input costs are concerns.

Other noteworthy reports we are featuring today include Morgan Stanley and Arista Networks.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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Arista Networks, Inc. (ANET) : Free Stock Analysis Report
 
Adobe Systems Incorporated (ADBE) : Free Stock Analysis Report
 
Morgan Stanley (MS) : Free Stock Analysis Report
 
Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report
 
Intel Corporation (INTC) : Free Stock Analysis Report
 
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