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Top Analyst Reports for Costco, NIKE & Fiserv

Friday, April 19, 2024

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 Costco Wholesale Corp. (COST), NIKE, Inc. (NKE) and Fiserv, Inc. (FI). 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 >>>

Costco's shares have outperformed the Zacks Retail – Discount Stores industry over the past year (+40.6% vs. +18.9%). The Zacks analyst believes that strategic investments, a customer-centric approach, merchandise initiatives, and an emphasis on membership growth have been aiding the company. A favorable product mix, steady store traffic, pricing power and strong liquidity position have also helped.

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However, stiff competition from BJ’s Wholesale Club and Sam’s Club, exposure to foreign currency fluctuations and a competitive disadvantage in stock price remain major headwinds.

(You can read the full research report on Costco here >>>)

NIKE’s shares have outperformed the Zacks Shoes and Retail Apparel industry over the past year (-23.1% vs. -24.4%). The Zacks analyst believes that continued progress on Consumer Direct Acceleration strategy, compelling product innovation and digital leadership have been helping NIKE stay ahead of its industry’s performance. The company expects strong gross margin execution and disciplined cost management going forward.

Yet, NIKE is witnessing inflationary pressures. Elevated demand creation expenses lead to higher SG&A expenses.

(You can read the full research report on NIKE here >>>)

Shares of Fiserv have outperformed the Zacks Financial Transaction Services industry over the last six months (+32.9% vs. +16.7%). Per the Zacks analyst, the company’s broad and diverse customer base, and continued technology upgrades have aided. A diversified product portfolio, acquisitions, and customer and shareholder rewards have also been driving growth.

However, maintaining strong and long-term client relationships has been a difficult task amid stiff competition. Acquisition of many companies also incur integration risk. The company deals with sensitive data, exposing it to cyber threats.

(You can read the full research report on Fiserv here >>>)

Other noteworthy reports we are featuring today include UnitedHealth Group Inc. (UNH), Synopsys, Inc. (SNPS) and América Móvil, S.A.B. de C.V. (AMX).

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 Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

Decent Comparable Sales Run to Fuel Costco's (COST) Top Line

NIKE's (NKE) Digital Business to Aid Sales in the Near Term

Fiserv (FI) Gains From Skytef Buyout, Amid High Competition

Featured Reports

Moderna's (MRNA) New Launches to Cut COVID Sales Dependency
With COVID vaccine sales declining, Moderna (MRNA) is accelerating development of its non-COVID pipeline. The Zacks Analyst is encouraged by the potential product launches over the next three years.

Acquisitions, Diverse Customer Base Aid NRG Energy (NRG)
Per the Zacks analyst, NRG Energy's organic and inorganic acquisitions, is likely to boost its results. Its diverse customer base and retention of customers increases earnings predictability.

Halliburton (HAL) to Benefit from North American Exposure
The Zacks analyst believes that Halliburton can take advantage of the tight fundamentals of the North American land drilling space through its market-leading pressure pumping operations.

America Movil (AMX) Benefits from Increasing Subscriber Base
Per the Zacks analyst, America Movil's performance is gaining from growing subscriber base. However, stiff competition and high debt load are major concerns.

Solid Membership Drives UnitedHealth (UNH), High Costs Ail
Per the Zacks analyst, sustained membership growth in its Commercial and Medicare Advantage business is set to fuel UnitedHealth's top-line growth. However, rising operating expenses are a woe.

Demand For Rental Units Aid AvalonBay (AVB) Amid High Supply
Per the Zacks Analyst, AvalonBay is likely to gain from the healthy demand for residential units amid high home ownership costs, though new deliveries and high interest rates are woes.

Teleflex (TFX) Thrives on the Palette Buyout, Cost Woes Stay
The Zacks Analyst is impressed with Teleflex's ongoing integration of Palette Life Sciences, which is set to be a major growth driver in the coming years. Yet, lingering cost issues are a concern.

New Upgrades

Synopsys (SNPS) Banks on Strong Product Menu, Contract Wins
Per the Zacks analyst, Synopsys' focus on strengthening its product portfolio is helping it cater to the growing demand in the EDA market. Deal wins at leading semiconductor companies is a tailwind.

Strength in Vista & National Pen Units Drive Cimpress (CMPR)
Per the Zacks analyst, strength in Cimpress' Vista and National Pen units, fueled by robust demand for promotional products, apparel and marketing materials, will continue to lend momentum to it.

New Product Launch & Inorganic Moves Aid Acuity Brands (AYI)
Per the Zacks analyst, investments on product innovation, in-organic growth strategies and cost-saving initiatives are aiding Acuity Brands' prospects. Also, diversified product portfolio bodes well.

New Downgrades

Higher Input Costs, Agriculture Weakness Ail Valmont (VMI)
Per the Zacks analyst, Valmont is grappling with raw material cost inflation, which will exert pressure on margins. Lower sales due to market weaknesses will also hurt its Agriculture unit.

Yelp (YELP) Hurt by Falling Delivery, Rising Competition
Per the Zacks analyst, declining food take-out and delivery order volumes due to reopening of economies is hurting Yelp's transaction revenues. Competition from Google and Facebook is a major threat.

J. B. Hunt (JBHT) Continues to Grapple With Segmental Weakness
The Zacks Analyst is worried about the fact that lower revenues across the majority of the segments, higher equipment-related costs, and higher insurance and claims expenses hurt J. B. Hunt's results.

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

NIKE, Inc. (NKE) : Free Stock Analysis Report

UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report

America Movil, S.A.B. de C.V. Unsponsored ADR (AMX) : Free Stock Analysis Report

Costco Wholesale Corporation (COST) : Free Stock Analysis Report

Synopsys, Inc. (SNPS) : Free Stock Analysis Report

Fiserv, Inc. (FI) : Free Stock Analysis Report

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Zacks Investment Research