Top Research Reports For Apple, Visa & Starbucks
Zacks Investment Research | Nov 04, 2018 11:20PM ET
Monday, November 5, 2018
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 Apple (AAPL), Visa (V) and Starbucks (SBUX). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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Buy-ranked Apple’s shares have gained +22.6% year to date and have outperformed the broader market with the S&P 500 gaining +1.9% over the same period. Apple’s fourth-quarter fiscal 2018 results were driven by robust iPhone average selling price (ASP) as well as strength in the services and wearables segments.
The Zacks analyst thinks the Services segment has become the new cash cow for Apple and will grow strongly driven by increasing adoption of Apple Music & Apple Pay. Moreover, Apple is expected to benefit from an expanded portfolio with the launch of new iPhones. Further, robust demand for wearables is expected to drive top-line growth.
Apple’s foray into fast-growing technologies like autonomous vehicle, artificial intelligence (AI) & AR/VR will drive further growth. However, the company continues to lose share in the smartphone market. Moreover, increasing competition from Chinese handset makers remains a concern.
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Shares of Visa have outperformed the Zacks Financial Transaction Services industry over the past year (+24.9% vs. +18.3%). Visa’s earnings beat expectations. Also, the bottom line improved year over year. Results were driven by growth in payments volume, cross-border volume and processed transactions, and a lower tax rate.
The Zacks analyst thinks numerous strategic acquisitions and alliances, technology upgrades and effective marketing have paved the way for long-term growth and consistent revenue rise. Visa is well poised to gain from the growing electronic payment processing and strong international business. Nevertheless, high client incentives and operating expenses and foreign exchange volatility may pressure margins.
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Buy-ranked Starbucks’ shares are up +23.5% over the past three months, outperforming the Zacks Food & Restaurants industry, which is up +9.1% over the same period. The Zacks analyst thinks the trend is likely to continue, given its impressive performance in fourth-quarter fiscal 2018.
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Results were primarily driven by robust Americas and U.S. comparable store sales. Starbucks’ largest market the United States, reported comps growth of 4%, which marks the strongest gain in the past five quarters. Also, the company’s operating fundamentals such as solid global footprint, successful innovations, best-in-class loyalty program and digital offerings are encouraging.
Again, digital initiatives like mobile order/pay, delivery services and third-party loyalty partnerships can further stimulate robust sales trends in the Americas. Additionally, Starbucks has teamed up with Nestle SA (SIX:NESN) to revitalize their respective coffee domains. However, operating margin contraction over the past few quarters has been a major concern.
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Other noteworthy reports we are featuring today include BP plc (LON:BP), Anthem (NYSE:ANTM) and BlackRock (BLK).
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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
A strong portfolio of upstream projects that includes Taas-Yuryakh Expansion in Russia and Quad 204 in UK North Sea will help BP boost oil production, per the Zacks analyst.
Per the Zacks analyst, a number of initiatives and constant acquisitions have helped Anthem expand its portfolio and boost its Medicare Advantage business, which in turn, helped revenue grow.
Per the Zacks analyst, BlackRock is poised for revenue growth, driven by efforts to restructure its active equity business. Yet, increasing expenses, due to higher marketing costs, might hurt profits.
The Zacks analyst believes that Enterprise Products' $6.6 billion pipeline of fee-oriented expansion projects, mainly in the Permian and Mont Belvieu, will enable it to deliver strong growth.
Per the Zacks analyst, Schwab's focus to improve trading revenues by taking several measures and higher interest rates aid revenues.
Per the Zacks analyst, CME Group's (NASDAQ:CME) focus on expansion of its derivative product lines will continue to drive top-line growth, thus boosting overall performance.
Per the Zacks analyst, Progressive is poised to grow on the company's compelling product portfolio and strong market presence.
A strong portfolio of upstream projects that includes Taas-Yuryakh Expansion in Russia and Quad 204 in UK North Sea will help BP boost oil production, per the Zacks analyst.
Per the Zacks analyst, a number of initiatives and constant acquisitions have helped Anthem expand its portfolio and boost its Medicare Advantage business, which in turn, helped revenue grow.
Per the Zacks analyst, BlackRock is poised for revenue growth, driven by efforts to restructure its active equity business. Yet, increasing expenses, due to higher marketing costs, might hurt profits.
The Zacks analyst believes that Enterprise Products' $6.6 billion pipeline of fee-oriented expansion projects, mainly in the Permian and Mont Belvieu, will enable it to deliver strong growth.
Per the Zacks analyst, Schwab's focus to improve trading revenues by taking several measures and higher interest rates aid revenues.
Per the Zacks analyst, CME Group's (NASDAQ:CME) focus on expansion of its derivative product lines will continue to drive top-line growth, thus boosting overall performance.
Per the Zacks analyst, Progressive is poised to grow on the company's compelling product portfolio and strong market presence.
New Upgrades/h6
Per the Zacks analyst, Qorvo's Expanding portfolio of 5G and GaN solutions hold promise. Further, robust growth in company's wireless connectivity and base station solutions is a positive.
Per the Zacks analyst, Estee Lauder sales are set to gain from efforts to enhance travel retail, which saw solid growth in the first quarter due to traffic, effective launches and marketing plans.
Per the Zacks analyst, FireEye is benefiting from robust growth in cloud subscriptions. Growing adoption of newer products like Managed Defense, Endpoint and Helix is a tailwind.
Per the Zacks analyst, Qorvo's Expanding portfolio of 5G and GaN solutions hold promise. Further, robust growth in company's wireless connectivity and base station solutions is a positive.
Per the Zacks analyst, Estee Lauder sales are set to gain from efforts to enhance travel retail, which saw solid growth in the first quarter due to traffic, effective launches and marketing plans.
Per the Zacks analyst, FireEye is benefiting from robust growth in cloud subscriptions. Growing adoption of newer products like Managed Defense, Endpoint and Helix is a tailwind.
New Downgrades/h6
Although HCP's portfolio-pruning efforts bode well for long-term growth, the Zacks analyst thinks dilutive impact on near-term earnings from these dispositions will act as a growth hurdle.
The Zacks analyst is worried about NuVasive following constant decline in product prices due to intensifying competition in the spine market. Further, escalating costs and expenses are other concerns.
Per the Zacks analyst, Kellogg's third-quarter performance was hurt by higher promotional investments. Management expects such headwinds to continue in 2018, and thereby lowered its earnings view.
Although HCP's portfolio-pruning efforts bode well for long-term growth, the Zacks analyst thinks dilutive impact on near-term earnings from these dispositions will act as a growth hurdle.
The Zacks analyst is worried about NuVasive following constant decline in product prices due to intensifying competition in the spine market. Further, escalating costs and expenses are other concerns.
Per the Zacks analyst, Kellogg's third-quarter performance was hurt by higher promotional investments. Management expects such headwinds to continue in 2018, and thereby lowered its earnings view.
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