Wednesday, April 1, 2020
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 Stryker (SYK), Shopify (SHOP) and Activision Blizzard (ATVI). 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 >>>
Stryker’s shares have underperformed the Zacks Medical Products industry over the past six months (-26.8% vs. -13). The Zacks analyst believes that Stryker continues to gain from its core MedSurg unit, which put up a strong show in the fourth quarter.
Additionally, strength in flagship Mako platform continues to favor the company. Moreover, solid performance by the neurotech product lines drove the core Neurotechnology & Spine unit in the quarter under review. Robust international growth also instills investor optimism in the stock.
Expansion in operating margin is a positive while a strong outlook for 2020 is indicative of bright prospects. Stryker exited fourth-quarter 2019 on a strong note, wherein both earnings and revenues beat their respective consensus marks. However, pricing pressure continues to plague Stryker. Stiff competition in the MedTech space remains a headwind.
(You can read the full research report on Stryker here >>>)
Shares of Shopify have gained 98.5% over the past year against the Zacks Internet Services industry’s fall of 18.6%. The Zacks analyst believes that Shopify is expected to benefit from a diversified expanding merchant base. Robust performance of Shopify Shipping, Shopify Payments and Shopify Capital is a key catalyst.
The company continues to launch merchant-friendly applications to cater to the demands of a dynamic retail environment, consequently bolstering merchant base. Moreover, initiatives aimed at international expansion and innovative expansion of services remains noteworthy. The acquisition of 6 River Systems is anticipated to boost growth of the company’s fulfillment network.
However, increasing investments on product development, infrastructure and platform are likely to limit margin expansion in the near term. Further, lack of significant presence in the Asia-Pacific market remains a headwind.
(You can read the full research report on Shopify here >>>)
Activision Blizzard’s shares have lost -1% over the past three months against the Zacks Toys, Games and Hobbies industry’s fall of -7.1%. The Zacks analyst believes that Activision’s top line is expected to benefit from an expanding user base of Call of Duty: Modern Warfare, Hearthstone, World of Warcraft and King’s Candy Crush Saga, particularly owing to the coronavirus-led lockdowns globally.
The availability of the much-awaited World of Warcraft Classic and Call of Duty: Warzone is expected to expand the company’s user base in the near term. Further, growing popularity of Call of Duty Mobile and e-sports initiatives is expected to drive the top line in the near term. Activision's enviable IP and strength in popular gaming franchises bode well for the long haul. However, lack of major releases, particularly from the Blizzard division, is an overhang.
(You can read the full research report on Activision Blizzard here >>>)
Other noteworthy reports we are featuring today include Danaher (DHR), TC Energy (TRP) and Dollar General (DG).
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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 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
Core MedSurg Unit Aids Stryker (SYK), Pricing Pressure Ails
Product Rollouts & Growing Merchant Base Aid Shopify (SHOP)
Solid Gaming Portfolio Aids Activision's (ATVI) Prospects
Acquisitions to Aid Danaher (DHR), High Debts & Costs to Hurt
Per a Zacks analyst, Danaher (DHR) is poised to gain from acquired assets.
TC Energy's (TRP) C$30B Growth Projects to Boost Earnings
The Zacks analyst believes that TC Energy's C$30 billion of growth projects should support its earnings and dividend payouts.
Dollar General's (DG) Sturdy Comps Run to Propel Top-Line
Per the Zacks analyst, the company's better price management, merchandise, cost containment and operational initiatives should drive sales.
Strong Pharmaceutical Segment Aids AmerisourceBergen (ABC)
The Zacks analyst is bullish about strong gains within AmerisourceBergen's World Courier business.
Strong Trading Volumes, Balance Sheet Aid MarketAxess (MKTX)
Per the Zacks analyst, international opportunities and a diversified suite of trading products has led to high trading volumes driving revenues.
Systematic Capital Investments to Aid Pinnacle West (PNW)
Per the Zacks analyst, Pinnacle West's long-term capital expenditure plan to strengthen infrastructure and investment in battery storage projects will make its renewable projects more efficient.
Papa John's (PZZA) Robust Comps Bode Well, Cost Woes Stay
Per the Zacks analyst, Papa John's comparable sales benefits from expansion plans, strategic partnerships, strong digital platform and sales initiatives.
Cirrus Logic (CRUS) Rides on Strengthening Product Portfolio
Per the Zacks analyst, Cirrus Logic's expanding product portfolio comprising audio, voice and other adjacent market items, such as haptics, is a key driver.
EMCOR (EME) Rides on Robust Construction Activity & Buyouts
Robust construction activity, mainly within the health care, commercial and transportation markets, along with aggressive acquisitions will help EMCOR to drive profit, per the Zacks analyst.
Murphy USA (MUSA) to Gain from Proximity to Walmart Stores
The Zacks analyst believes that the proximity of Murphy USA's fuel stations to Walmart stores helps in leveraging their strong and consistent traffic.
Low Leisure-Travel Demand & Debt Woes Hit Allegiant (ALGT)
The Zacks analyst is worried about the coronavirus-induced weak air-travel demand for leisure, which is eating into Allegiant's top line.
Weak Metal Prices & Energy Demand Hurt Reliance Steel (RS)
Per the Zacks analyst, softer metal prices will weigh on Reliance Steel's margins. Reduced activities amid slumping oil prices will also hurt demand for its products in the energy market.
High Capital Expenses & Debt Levels Weigh on SkyWest (SKYW)
With SkyWest spending heavily on fleet modernization, the Zacks analyst is concerned about the escalating capital expenses, which might hurt the bottom line.
TC Energy Corporation (TRP) : Free Stock Analysis Report
Stryker Corporation (SYK) : Free Stock Analysis Report
Shopify Inc. (SHOP) : Free Stock Analysis Report
Danaher Corporation (DHR) : Free Stock Analysis Report
Dollar General Corporation (DG) : Free Stock Analysis Report
Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report
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