Top Analyst Reports for Cisco, Oracle & Kraft Heinz

Monday, June 25, 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 Cisco (CSCO), Oracle (ORCL) and Kraft Heinz (KHC). 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 >>>

Cisco's shares have outperformed the Zacks Networking industry year to date, gaining +12.7% vs. +11.9%. Cisco is an IP-based networking company. Strong contribution from acquisitions, security, Infrastructure Platforms and applications drove are positives.

The Zacks analyst thinks Cisco’s expanding footprint in the rapidly growing security market presents significant growth opportunities. Strengthening collaboration portfolio which now includes Webex Teams and AI-based Accompany bodes well. Partnerships with Telenor, Apple, IBM, Microsoft and Google Cloud are positive. Divestiture of a portion of Cisco’s NDS video assets is likely to mitigate the sluggishness witnessed in other product segment.

However, weakness in switching and routing is a headwind. Ongoing transition to subscription-based model will continue to hurt the top line. Further, dampening service provider business and intense competition from the likes of Huawei, Juniper and Arista Networks are other concerns.

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

Shares of Oracle have underperformed the Zacks Software industry in the last year, losing -13.3% vs. +29.4%. Oracle is one of the largest enterprise-grade database, middleware and application software providers. The company is benefiting from strong adoption of its cloud-based solutions.

The Zacks analyst thinks the company’s growing cloud market share will continue to drive top-line growth in the long haul. Partnerships with the likes of Accenture are helping the company rapidly expand its cloud-base clientele. Also, anticipated strong demand for the next-generation autonomous database supported by machine learning will boost competitive position against AWS.

Notably, Oracle has undergone structural changes. It no longer intends to break out its cloud revenues and does not provide any guidance on SaaS, Cloud PaaS and IaaS. This move is likely to enhance investor concern about the company's outlook.

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

Kraft Heinz’s shares have declined -18.6% year to date, underperforming the Zacks Diversified Food industry which is down -7.8% over the same period. Kraft Heinz posted first-quarter 2018 results, wherein earnings beat expectations while revenues missed the same.

The Zacks analyst thinks the company is progressing well with its cost-savings plan as well as efforts to enhance productivity like zero-based budgeting; modernization and biding capability within the manufacturing footprint. However, Kraft Heinz top line has been soft. Evidently, in the first quarter, the top line was adversely impacted by soft consumer demand in North America and Rest of World.

Kraft Heinz has been struggling due to the shift in consumer preference toward natural and organic ingredients over packaged and processed food. Estimates have also trended downward over the past 60 days. Nevertheless, the company’s cost-savings, which are re-invested in the business for innovation, brand building and marketing should provide cushion.

(You can read the full research report on Kraft Heinz here >>>).

Other noteworthy reports we are featuring today include Micron (MU), ADP (ADP) and Deere (DE).

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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

Cisco (CSCO) Rides on Security Products & Broadsoft Buyout

Oracle (ORCL) Rides on Cloud Adoption & Product Rollouts

Cost-Savings to Aid Kraft Heinz (KHC), Soft Sales a Worry

Featured Reports

Micron (MU) Benefits from Robust Demand with DRAM in Focus.

Per the Zacks analyst, Micron is winning from a strong demand across all business and product segments. A higher mix of server and graphics DRAM demand is aiding the growth.

ADP Benefits From WorkMarket & Global Cash Card Buyouts

The Zacks analyst believes that acquisitions of WorkMarket and Global Cash Card will help ADP to expand business, strengthen client base and boost top-line growth.

Wirtgen Drives Deere (DE) Amid Agriculture Business Concerns

The Zacks analyst thinks that the Wirtgen buyout will expand Deere's construction business and help offset the impact of weak farm income on its agriculture business.

Marriott (MAR) Gains From Starwood Buyout, Competition Ails

The Zacks analyst believes that Marriott will benefit from the Starwood acquisition and an arresting brand position. However, stiff competition in the hospitality space will continue to prevail

Strong Consumer to Consumer Business Aids Western Union (WU)

Per the Zacks analyst, Consumer-to-Consumer business had aided revenue growth and will remain attractive driven by improvement in cross-border remittance and strong growth in digital platform.

Loan Growth, Higher Rates Aid KeyCorp (KEY), High Cost A Woe

Per the Zacks analyst, KeyCorp is well poised for revenue growth driven by continued loan growth and higher interest rates.

Animal Health Unit Aids Patterson (PDCO), Dental Segment Dull

The Zacks analyst is upbeat about Patterson's Animal Health segment that has been performing well lately.

New Upgrades

Concho (CXO) to Scale Up Operations with RSP Permian Buy

The Zacks analyst believes that Concho Resources' $9.5 billion acquisition of RSP Permian will bolster the scale and leadership position of the combined entity in the prolific Permian oil play.

Burlington Stores (BURL) Sturdy Comps Run to Propel Top-Line

Per the Zacks analyst, Burlington Stores' strategies helped attain 21st straight quarter of comps growth in the first quarter. The company now envisions comps growth of 2.6-3.4% for the final quarter.

Advanced Surgical & Endoscopic Technology Aid CONMED (CNMD)

CONMED gains ground on Advanced Surgical and Endoscopic Technologies growth. The Zacks analyst is also bullish about the company's continued R&D innovations.

New Downgrades

Netflix (NFLX) Hurt By Cost Escalations, Rising Competition

Per the Zacks analyst, increasing market spends and higher investments on content will continue to hurt Netflix's profitability. Rising competition from players like Amazon and Apple is a concern.

Higher Interest Rate, Regulations May Hurt DTE Energy (DTE)

Per the Zacks analyst, escalating interest rate scenario in the United States may hurt a capital-intensive stock like DTE Energy. Also, stringent regulations for curbing emissions remains a concern.

Escalating Costs Weigh on MarketAxess' (MKTX) Margins

Per the Zacks analyst, increasing expenses have weighed on the company's margins and the same are expected to rise over the coming quarters given its ongoing investments in business expansion.

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Oracle Corporation (ORCL) : Free Stock Analysis Report
 
Micron Technology, Inc. (MU) : Free Stock Analysis Report
 
The Kraft Heinz Company (KHC) : Free Stock Analysis Report
 
Deere & Company (DE) : Free Stock Analysis Report
 
Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
 
Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report
 
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