Top Stock Reports For Apple, NextEra & Ford
Zacks Investment Research | Feb 15, 2018 04:25AM ET
Thursday, February 15, 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), NextEra (NEE) and Ford (F). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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Apple’s shares are up +23.6% over the last one year, outperforming the S&P 500 (up +15.5%) and in line with the Zacks Technology sector (up +20.5%). Apple reported strong earnings and top-line growth in first-quarter 2018.
The company’s top-line growth benefited from iPhone X’s higher average selling price (ASP), which offset sluggish unit sales growth. Paid subscriber base grew in the Services segment, which reflected strength in portfolio. Going forward, the Zacks analyst thinks Apple’s foray into fast-growing technologies like autonomous vehicle, artificial intelligence (AI) & AR/VR will drive growth in the long haul.
Moreover, Apple’s new investment plan will boost its subscription-based services business and put an end to the criticism it is facing for not creating enough jobs in the United States. Additionally, the impressive cash balance, post the tax reform, is expected to boost shareholder value. However, the sluggish demand for iPhone X remains a concern amid intensifying competition.
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Shares of NextEra have outperformed the Zacks Electric Power industry over the last one year (the stock is up +19% vs. -3.5% decline for the industry). NextEra Energy’s performance was mixed with its earnings lagging expectation while total revenues surpassing the same in the fourth quarter.
The Zacks analyst stresses that the company’s investment to strengthen its infrastructure and ongoing capital projects, when completed, will help it serve its expanding customer base more efficiently. The company’s focus on clean energy has helped it lower emission levels, and use of new technology has saved on energy bills for its customers.
The natural gas pipelines, which came online in first half of 2017, are expected to boost its performance. The company’s nature of business is subject to complex and comprehensive federal, state and other regulations. Despite investments made to strengthen its infrastructure the unpredictable nature of natural disaster could derail normal operation and impact profitability.
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Ford’s shares have underperformed the Zacks Domestic Automotive industry over the last three months (-10.8% vs. -2.7%). Ford’s recent plans to rev up production of new Lincoln Navigator & Ford Expedition at its Kentucky factory, is expected to drive its profit margins and create challenges for its rivals.
The company reported mixed fourth quarter earnings. Ford is expanding its production capacity in many emerging markets to facilitate supply, cost reduction and manage transportation challenges. It has been making quite a large amount of investment for the development of next generation cars, which can be beneficial in the long-run but are likely to create short-term strains on the financials of the company.
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Other noteworthy reports we are featuring today include Hartford Financial (HIG), Harris (HRS) and Netapp (NTAP).
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Mark Vickery
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
Per the Zacks analyst, strategic acquisitions completed over the last few years and loan growth will support Raymond James' profitability. Its capital deployment plans indicate strong balance sheet.
While appreciating Patterson-UTI's more efficient and technologically-advanced APEX Rigs, the Zacks analyst remains concerned over the increase in average rig operating cost per day.
The Zacks analyst likes the company's efforts to reward shareholders through dividends & buybacks.
Per the Zacks analyst, impressive performance of Ubiquiti's Enterprise Technology business should drive the company's revenues in the quarters to come.
Per the Zacks analyst Consumer-to-Consumer business had aided revenue growth and will remain attractive driven by improvement in cross-border remittance.
The Zacks analyst believes persistent innovation in flash-based solutions will continue to benefit Netapp's top-line growth.
Per the Zacks analyst, VeriSign is benefiting from rising domain name registrations for .com and .net top level domains.
Per the Zacks analyst, strategic acquisitions completed over the last few years and loan growth will support Raymond James' profitability. Its capital deployment plans indicate strong balance sheet.
While appreciating Patterson-UTI's more efficient and technologically-advanced APEX Rigs, the Zacks analyst remains concerned over the increase in average rig operating cost per day.
The Zacks analyst likes the company's efforts to reward shareholders through dividends & buybacks.
Per the Zacks analyst, impressive performance of Ubiquiti's Enterprise Technology business should drive the company's revenues in the quarters to come.
Per the Zacks analyst Consumer-to-Consumer business had aided revenue growth and will remain attractive driven by improvement in cross-border remittance.
The Zacks analyst believes persistent innovation in flash-based solutions will continue to benefit Netapp's top-line growth.
Per the Zacks analyst, VeriSign is benefiting from rising domain name registrations for .com and .net top level domains.
New Upgrades/h6
The Zacks analyst thinks that U.S. Steel should gain from efforts to improve its operations through the Carnegie Way initiative as well as actions to expand its foothold in the automotive space.
Accuray rides on the market's solid response to the Radixact platform. The Zacks analyst feels that the platform is generating favorable pricing and margins for the company.
Per the Zacks analyst, Leucadia's well-diversified revenue streams and infrastructure spending by Trump will improve its growth.
The Zacks analyst thinks that U.S. Steel should gain from efforts to improve its operations through the Carnegie Way initiative as well as actions to expand its foothold in the automotive space.
Accuray rides on the market's solid response to the Radixact platform. The Zacks analyst feels that the platform is generating favorable pricing and margins for the company.
Per the Zacks analyst, Leucadia's well-diversified revenue streams and infrastructure spending by Trump will improve its growth.
New Downgrades/h6
Per the Zacks analyst, continued softness in Personal Lines and Talcott Resolution segments has adversely affected Hartford Financial's top line.
Per the Zacks analyst, sluggish crawler and rough terrain markets, weakness in some key APAC markets and Middle East, and cost pressures relating to materials & labor will weigh on Manitowoc's results
Per the Zacks analyst, buyouts have negatively impacted Genpact's balance sheet. Further, increasing government regulation over outsourcing (H1B Visa, Cross-border tax) is a headwind.
Per the Zacks analyst, continued softness in Personal Lines and Talcott Resolution segments has adversely affected Hartford Financial's top line.
Per the Zacks analyst, sluggish crawler and rough terrain markets, weakness in some key APAC markets and Middle East, and cost pressures relating to materials & labor will weigh on Manitowoc's results
Per the Zacks analyst, buyouts have negatively impacted Genpact's balance sheet. Further, increasing government regulation over outsourcing (H1B Visa, Cross-border tax) is a headwind.
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