For Immediate Release
Chicago, IL – February 22, 2018 – 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 Walmart WMT, Cisco CSCO, Intel INTC, UPS UPS and Wynn Resorts WYNN.
Here are highlights from Wednesday’s Analyst Blog:
Top Stock Reports for Walmart, Cisco, Intel & UPS
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 17 major stocks, including Walmart, Cisco, Intel and UPS. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Buy-rated Walmart’s shares have been strong performers lately, with the stock up +17.6% over the last six months, outperforming the S&P 500's +10.9% gain in the same time period. Walmart, which recently emerged as an omni-channel retailer officially, has been riding on constant growth efforts – both in stores and online.
The company’s robust e-commerce initiatives, like buyouts, alliances, online grocery and improved delivery systems have been working well. These trends helped Walmart post its 14th straight quarter of U.S. comps growth in fourth-quarter fiscal 2018, wherein earnings and sales rose year over year.
However, gross margin remained strained owing to mix impact from growing e-commerce operations, price investments and higher markdowns. Also, the rate of e-commerce growth slowed down sequentially.
Nevertheless, management expects U.S. e-commerce sales to jump nearly 40% in fiscal 2019, which should help the company revert to its track of surpassing the industry. The Zacks analyst expects these factors and projected gains from tax reforms to fuel the bottom line.
Shares of Buy-rated Cisco have outperformed the Zacks Networking industry over the past year, gaining +29.3% vs. +27.3%. Cisco reported impressive second-quarter fiscal 2018 results. Both earnings and revenues increased on a year-over-year basis. The growth was driven by strong contribution from acquisitions, security, Infrastructure Platforms and applications.
The Zacks analyst thinks the company’s expanding footprint in the rapidly growing security market presents a significant growth opportunity. Additionally, partnerships with Telenor, Apple, IBM, Microsoft, Google Cloud, Viacom and Alibaba and aggressive share buybacks are other positives. However, weakness in the switching and routing is a headwind.
Moreover, ongoing transition to subscription-based model will continue to hurt the top line. Further, weakness in the service provider business segment and intense competition from the likes of Huawei, Juniper and Arista Networks are other major concerns.
Buy-rated Intel’s shares have underperformed the Zacks General Semiconductor industry over the past one year, gaining +28.5% vs. +53.3%. However, Intel reported stellar fourth-quarter results and provided an encouraging guidance. The company is benefiting from robust performance of the DCG, IoT Group, NSG and PSG. These segments form the crux of Intel’s data-centric business model.
Further, the launch of FPGA SDK for OpenCL solution, Xeon Scalable, Core 8 chips, Myriad X and next-generation desktop processors are key catalysts. Lately, Intel’s Movidius vision processing has gained strong adoption. The processor was selected by Alphabet’s Google division and Amazon.com’s DeepLens. Intel also announced level through five autonomous driving platform based on EyeQ5 and Atom, which will sample over the next few months.
Its partnerships with BMW, Nissan, Volkswagen AG and Ferrari will boost sales of processing chips, sensor-chips, cloud software and many more, which will drive top-line growth. However, stiff competition from peers adds to its woes.
Shares of Buy-rated UPS have underperformed the Zacks Air Freight and Cargo industry as well as rival FedEx in a year's time. While UPS has lost -0.9%, the industry it belongs to and FedEx have rallied +8.7% and +24.3%, respectively. Despite the unimpressive price performance, UPS outperformed in the fourth quarter of 2017.
Also, revenues and earnings per share improved year over year. Results were aided by strong export volumes. Moreover, UPS performed well in the most recent holiday season on the back of e-commerce growth. In February 2018, UPS announced its decision to increase quarterly dividends which is an added positive.
Furthermore, the new tax law (Tax Cuts and Jobs Act), which reduces corporate tax rate significantly, is encouraging. However, high costs continue to limit bottom-line growth. Its forecast for 2018 capex, which is higher than 2017 levels, might push up costs further.
Other noteworthy reports we are featuring today include Wynn Resorts.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks Investment Research
800-767-3771 ext. 9339
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/performancefor information about the performance numbers displayed in this press release.
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
Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report
Wal-Mart Stores, Inc. (WMT) : Free Stock Analysis Report
United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
Intel Corporation (INTC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research