Top Analyst Reports For Salesforce, Lockheed Martin & Intuit
Zacks Investment Research | Oct 23, 2019 02:16AM ET
Wednesday, October 23, 2019
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 salesforce.com (CRM), Lockheed Martin (LMT) and Intuit (INTU). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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salesforce’s shares have underperformed the Zacks Computer Software industry year to date (4.9% vs. 27.8%). The Zacks analyst believes that salesforce is gaining from solid growth across its cloud offerings.
The company is benefiting immensely from an expanding partner ecosystem, which is contributing to business wins and boosting its presence globally. Deal wins in the international market are growth drivers. Rapid adoption of its diverse cloud offerings, given an upsurge in demand for digital transformation, is a key catalyst.
Additionally, acquisitions like MuleSoft, Tableau, ClickSoftware and Salesforce.org are significant revenue drivers. However, stiff competition from Oracle (NYSE:ORCL) and Microsoft (NASDAQ:MSFT) is a concern. Persistence of unfavorable currency fluctuations is a key headwind. Besides, increasing investments in international expansions and data centers are an overhang on profitability.
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Shares of Lockheed Martin have gained 13.4% in the past six months against the Zacks Aerospace Defense industry’s rise of 1%. The Zacks analyst believes that the company enjoys strong demand for its high-end military equipment in domestic and international markets.
Lockheed Martin is also the largest U.S. defense contractor with a platform-centric focus that guarantees a steady inflow of follow-on orders. In a year’s time, Lockheed Martin has outperformed the industry. However, the company’s higher debt-to-equity ratio shows that the stock is highly leveraged when compared with its industry.
Lockheed Martin also faces intense global competition for its broad portfolio of products and services. Forced cost reduction initiatives for its F-35 program might hamper its operating results.
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Intuit’s shares have lost 7.6% over the past three months against the Zacks Computer Software industry’s decline of 5.9%. The Zacks analyst believes Intuit is benefiting from strong momentum in Online ecosystem revenues and growth in the Consumer business. Impressive growth in its Small Business and Self-Employed is a tailwind.
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The TurboTax Live offering is also driving strong growth in the Consumer tax business. Solid momentum of the company’s lending product, QuickBooks Capital, is a positive. Moreover, the company’s strategy of shifting its business to cloud-based subscription model will help generate more stable revenues over the long run.
Estimates have been stable lately ahead of the company’s Q1 earnings release. However, high costs and expenses remain a major concern. Moreover, the company expects total QuickBooks Online subscriber growth to moderate in the near term as it continues to focus on additional services.
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Other noteworthy reports we are featuring today include Disney Company (DIS), The Bank of New York Mellon (NYSE:BK) (BK) and ConocoPhillips (NYSE:COP) (COP).
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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
Today's Must Read/h6
Featured Reports/h6
The Zacks analyst is impressed by the company's cost-reduction efforts that are leading to an improvement in operating ratio.
Per the Zacks analyst, solid balance sheet and efforts to improve efficiency through prudent cost control will aid BNY Mellon.
Per the Zacks analyst, Fox is expected to gain traction from growing demand for live programming, which is relatively immune to growing competition from subscription-based video-on-demand services.
Per the Zacks analyst, Snap benefits from an improving user growth driven by strong adoption of AR Lenses and demand for premium content including original shows.
The Zacks analyst is impressed with the 82% surge in top line during first-half 2019 on active rider growth.
Per the Zacks Analyst, Rayonier will benefit from its timberlands' geographical diversity and better pricing power.
Per the Zacks analyst, Universal Forest is poised to benefit from its buyout strategy and innovation plan. However, rapid lumber market swings and high labor costs pose a concern.
The Zacks analyst is impressed by the company's cost-reduction efforts that are leading to an improvement in operating ratio.
Per the Zacks analyst, solid balance sheet and efforts to improve efficiency through prudent cost control will aid BNY Mellon.
Per the Zacks analyst, Fox is expected to gain traction from growing demand for live programming, which is relatively immune to growing competition from subscription-based video-on-demand services.
Per the Zacks analyst, Snap benefits from an improving user growth driven by strong adoption of AR Lenses and demand for premium content including original shows.
The Zacks analyst is impressed with the 82% surge in top line during first-half 2019 on active rider growth.
Per the Zacks Analyst, Rayonier will benefit from its timberlands' geographical diversity and better pricing power.
Per the Zacks analyst, Universal Forest is poised to benefit from its buyout strategy and innovation plan. However, rapid lumber market swings and high labor costs pose a concern.
New Upgrades/h6
The Zacks analyst appreciates the company's efforts to reward shareholders. Efforts to modernize its fleet are also encouraging.
Per the Zacks analyst, Prothena's efforts to develop prasinezumab in collaboration with bigwigs like Roche bodes well given the latter's expertise. The company's deal with Celgene (NASDAQ:CELG) is also positive.
Per the Zacks analyst, AVEO is surging high on positive updated data on Fotivda and remains on course to file a potential NDA in the United States.
The Zacks analyst appreciates the company's efforts to reward shareholders. Efforts to modernize its fleet are also encouraging.
Per the Zacks analyst, Prothena's efforts to develop prasinezumab in collaboration with bigwigs like Roche bodes well given the latter's expertise. The company's deal with Celgene (NASDAQ:CELG) is also positive.
Per the Zacks analyst, AVEO is surging high on positive updated data on Fotivda and remains on course to file a potential NDA in the United States.
New Downgrades/h6
Per the Zacks analyst, Disney's ongoing investments on its technology platform and higher marketing costs negatively impacted profitability.
ConocoPhillips expects oil equivalent production volumes to have sequentially declined in third-quarter 2019. The firm's rising production & operating expenses also concern the Zacks analyst.
Per the Zacks analyst, its rising debt level leading to interest expenses continues to be a risk. Escalating operating expenses due to several growth initiatives also remain a concern.
Per the Zacks analyst, Disney's ongoing investments on its technology platform and higher marketing costs negatively impacted profitability.
ConocoPhillips expects oil equivalent production volumes to have sequentially declined in third-quarter 2019. The firm's rising production & operating expenses also concern the Zacks analyst.
Per the Zacks analyst, its rising debt level leading to interest expenses continues to be a risk. Escalating operating expenses due to several growth initiatives also remain a concern.
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