Top Research Reports for Adobe, United Technologies & Lockheed Martin

Thursday, October 4, 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 Adobe (ADBE), United Technologies (UTX) and Lockheed Martin (LMT). 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 >>>

Buy-ranked Adobe’s shares have gained +80% over the past one year, outperforming the Zacks Software industry which has increased +37.7% over the same period. The Zacks analyst thinks Adobe’s creative products are continuing to drive its top-line growth.

The company is currently benefiting from strong demand for its innovative solutions and growing subscriptions for its cloud application. Adobe has been making great efforts toward establishing its presence in cloud-related software areas such as documents and marketing. Adobe Experience Manager, which enables brands to offer a personalized experience, is also witnessing robust growth.

Adobe’s market position, compelling product lines, continued innovation, solid adoption of Creative Cloud and Adobe marketing cloud are major positives. However, lower end-market demand and exposure to Europe remain overhangs.

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

Shares of Buy-ranked United Technologies have gained +12.8% over the past three months, outperforming the Zacks Diversified Operations industry, which has increased +7.3% over the same period. The company continues to invest in innovative products through higher engineering spend, delivering value to its customers and securing orders that will drive top line growth in future.

The Zacks analyst thinks stronger Otis, Climate Control and Security, Pratt & Whitney and Aerospace Systems sales will continue to drive the company's revenues. Also, the buyout of S2 Security (completed recently) will help in solidifying the company's UTC Climate, Controls & Security segment.

Moreover, the company has received approval from the U.S. Department of Justice from the acquisition of Rockwell Collins. Higher revenues and cost-cutting measures will help in boosting the company's profitability in the quarters ahead. In the past 60 days, earnings estimates on the stock remained stable for 2018 while increased for 2019.

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

Buy-ranked Lockheed Martin’s shares have gained +10.4% over the past one year, underperforming the Zacks Aerospace Defense sector, which has gained +24% over the same period. The Zacks analyst emphasizes that Lockheed Martin, being the largest defense contractor in the world, enjoys a strong demand for its high-end military equipment in domestic as well as international markets.

Consequently, strong order growth has been a primary growth driver for this company. Lately, the company has been witnessing strong demand for its equipment, ranging from C-130J aircraft in France and Germany to helicopters in Poland to missile defense systems in the Asia-Pacific, Europe, and Middle East regions.

The company continues to be a strong cash generator, helping it to take important cash deployment decisions. However, the company faces intense competition for its broad portfolio of products and services in both domestic and international markets.

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

Other noteworthy reports we are featuring today include CVS Health (CVS), Aetna (AET) and Coca-Cola (KO).

5 Companies Verge on Apple-Like Run

Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2018 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs. A bonus Zacks Special Report names this breakthrough and the 5 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.

Click to see them right now >>

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

Adobe (ADBE) Rides on Growing Adoption of Cloud Applications

Buyouts to Boost United Technologies' (UTX) Growth Prospects

Order Growth, Stable Cash Flow Aids Lockheed Martin (LMT)

Featured Reports

Fewer RFP Prospects May Dent CVS Health's (CVS) PBM Growth

The Zacks analyst is concerned about CVS Health's 2019 PBM selling season which may remain dull on fewer RFP (Requests for Proposals) opportunities in the market than the previous years.

Business Streamlining To Drive Growth at Aetna (AET)

The Zacks analyst views favorably, sale of U.S. Group Life and Disability business, which was already underperforming.

eBay (EBAY) Rides on Strong Marketplace Business, AI Efforts

Per the Zacks analyst, eBay is experiencing increasing GMV on the back of its robust Marketplace growth. Also, its strong AI initiatives are aiding its brand to deliver better user experience.

Higher U.S. Land Activity Boosts Helmerich & Payne (HP)

The Zacks analyst likes higher utilization at Helmerich & Payne's key U.S. Land segment but is concerned over stagnating revenue growth and service cost inflation in the Permian Basin.

Bausch's (BHC) Salix Drives Growth Amid Weak Dermatology

Per the company, Bausch's Salix business continues to drive growth as increased sales of Xiaflex and Relistor is boosting the segment.

Lamb Weston's (LW) Top Line to Gain From Robust Price/Mix

Per the Zacks analyst, Lamb Weston's first-quarter sales growth was backed by improved price/mix in all units.

Weyerhaeuser (WY) Rides on Operational Excellence, Costs High

Per the Zacks analyst, Weyerhaeuser's focus on operational excellence plans, like merchandising for value, are encouraging.

New Upgrades

Portfolio Revamp to Benefit Simon Property (SPG)

Per the Zacks analyst, Simon Property is expected to ride high on benefits from new development, redevelopment, expansion and acquisition efforts amid e-retail boom.

BlackBerry (BB) Rides on Solid Software & Services Portfolio

Per the Zacks analyst, BlackBerry will continue to gain from healthy momentum in Technology Solutions, and Enterprise Software and Services businesses, while design wins remain an additional tailwind.

Strategic Initiatives, Medicare Business Aid Humana (HUM)

Per the Zacks analyst, initiatives by Humana like buyouts of Kindred and Curo, and Kansas City tie-up along with strong performance by the Medicare Advantage business should drive growth.

New Downgrades

Pricing Pressures to Hurt Coca-Cola's (KO) Top Line & Margins

Per the Zacks analyst, higher tariffs on aluminum as well as escalating freight and input costs have led to increased prices for Coca-Cola's products. This is likely to hurt its sales and margins.

High IBG LLC Dependence to Hurt Interactive Brokers (IBKR)

Per the Zacks analyst, Interactive Brokers' high dependence on IBG LLC remains a major concern because if it fails to provide funds for taxes, the company's financial condition might suffer.

ADP Faces Stiff Competition, Technological Challenges

The Zacks analyst believes that competition in each of ADP's product lines will hurt retention rate. The pressure to remain technologically updated to meet varying client demands is another concern.

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United Technologies Corporation (UTX) : Free Stock Analysis Report
 
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
 
Coca-Cola Company (The) (KO) : Free Stock Analysis Report
 
CVS Health Corporation (CVS) : Free Stock Analysis Report
 
Aetna Inc. (AET) : Free Stock Analysis Report
 
Adobe Systems Incorporated (ADBE) : Free Stock Analysis Report
 
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