New Zealand markets close in 5 hours 5 minutes
  • NZX 50

    -45.38 (-0.39%)

    -0.0007 (-0.12%)

    +27.80 (+0.35%)
  • OIL

    -0.34 (-0.42%)
  • GOLD

    +0.50 (+0.02%)

Top Research Reports for Nike, Salesforce & Zoetis

Thursday, March 16, 2023

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 Nike, Inc. (NKE), Salesforce, Inc. (CRM) and Zoetis Inc. (ZTS). 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 >>>

Shares of Nike have gained +10.2% over the past six month against the Zacks Shoes and Retail Apparel industry’s gain of +10.4%. The company gained from brand strength, robust consumer demand and an innovative product pipeline. Its Consumer Direct Acceleration strategy, along with robust performance in its digital and DTC businesses bode well.

Our Model estimates 5.5% revenue growth in fiscal 2023, with 13.2% growth on a currency neutral basis. However, Nike witnessed a decline in gross margin due to higher markdowns to liquidate inventory, increased freight and logistics costs, elevated input costs and currency headwinds.

The Zacks analyst expects soft gross margin and currency headwinds to continue hurting Nike results in the quarters ahead.

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

Salesforce’s shares have outperformed the Zacks Computer - Software industry over the past six months (+19.7% vs. +10.6%). The company is benefiting from a robust demand environment as customers are undergoing a major digital transformation. The rapid adoption of its cloud-based solutions is driving demand for its products. Its sustained focus on introducing more aligned products as per customer needs is driving its top-line.

Continued deal wins in the international market is another growth driver. The acquisition of Slack would position the company to be a leader in enterprise team collaboration solution space and better compete with Microsoft’s Teams product. The Zacks analyst expects CRM’s revenues to grow at a CAGR of 11.2% through fiscal 2024-2026.

However, stiff competition and unfavorable currency fluctuations are concerns. Besides, challenging macroeconomic environment might hurt its growth prospects in the near-term.

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

Shares of Zoetis have outperformed the Zacks Medical - Drugs industry over the past six months (+4.0% vs. -5.4%). The company’s momentum continues on its innovative portfolio of pet care parasiticides, including Simparica Trio and dermatology products (Apoquel and Cytopoint). The recently launched chewable version of Apoquel has seen strong growth in sales.

The uptake of Librela and Solensia in Europe, its new monoclonal antibody (mAb) therapies for osteoarthritis pain in dogs and cats, is encouraging. The launch of innovative products bolstered the portfolio and should fuel growth.

However, the company continues to face supply challenges which remain a headwind, along with disease outbreaks in livestock, hurting product demands. Stiff competition from animal health business wings of pharma bigwigs, Merck and Bayer, remains a woe.

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

Other noteworthy reports we are featuring today include Canadian Natural Resources Ltd. (CNQ), Archer-Daniels-Midland Co. (ADM) and Trane Technologies plc (TT).

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

NIKE's (NKE) Sales Gain on Improved Traffic & Digital Growth

Salesforce (CRM) Rides on Portfolio Strength and Buyouts


Zoestis' (ZTS) Products Boost Sales, Supply Issues A Concern

Featured Reports

Diverse Production Mix to Aid Canadian Natural (CNQ)
The Zacks analyst sees Canadian Natural's diverse production mix facilitating long-term value and reducing risk profile but is worried about the company's debt maturities each year out till 2027.

Growth Projects Aid Newmont (NEM) Amid Cost Woes
Per the Zacks Analyst, Newmont will gain from the progress of its key growth projects and synergies of the Goldcorp buyout. However, higher production costs are expected to weigh on its margins.

Robust Backlog, Buyouts Aid Quanta (PWR) Amid Low Margins
Per the Zacks analyst, accretive acquisitions and solid backlog levels aid Quanta's growth potential. However, project delays and low operating margins hurt.

Operating Prowess, Customer-Centrism Benefit Omnicom (OMC)
Per the Zacks analyst, consistency and diversity of Omnicom's operations and high focus on delivering consumer-centric strategic business solutions ensures long-term profitability for the company.

Expanding Customer Base, Investment Aid Alliant Energy (LNT)
Per the Zacks analyst Alliant Energy will gain from its $8.5 billion investment plan aimed to strengthen infrastructure. Expanding customer base is creating fresh demand and boosting results.

Higher Rates to Aid East West Bancorp (EWBC) Amid Cost Woes
Per the Zacks analyst, continued rise in loans along with higher interest rates will likely keep supporting East West Bancorp's top line. Elevated costs due to investments in technology remain a woe.

Strength in HSA Aids HealthEquity (HQY) Amid Stiff Competition
The Zacks analyst is upbeat about HealthEquity's continued strong growth in Health Savings Accounts or HSAs despite its operation in a highly competitive Medical Services market.

New Upgrades

Nutrition Segment to Drive Archer Daniel's (ADM) Growth
Per the Zacks analyst, Archer Daniels gains from strength in the Nutrition segment on continued demand in the human nutrition unit. It expects operating profit growth of 15-20% in 2022 for this unit.

Growth Objectives & Pro-Investor Steps Boost Trane (TT)
The Zacks Analyst is optimistic about Trane's growth objectives through focusing on steps to increase revenue stream. Also, its shareholder-friendly steps are a tailwind.

Voya Financial (VOYA) Benefits From Investment Management
Per the Zacks analyst, solid performance at the Investment Management segment backed by increased investment capital revenues and higher fee-based margin has been driving revenue growth at the company

New Downgrades

Verizon (VZ) Margins Marred by High Discount to Woo Customers
Per the Zacks analyst, Verizon is likely to be plagued by persistent losses in access lines owing to competitive pressure and high operating expense owing to promotions and discounts to woo customers.

Customer Inventory Reduction Actions Hurt's Marvell (MRVL)
Per the Zacks analyst, customers inventory reduction actions to manage excess chip inventories along with weakening consumer spending are likely to hurt Marvell's near-term growth prospects.

Southwestern (SWN) to Suffer From Lower Production Volumes
Per the Zacks analyst, Southwestern's declining production despite a favorable natural gas price scenario will hurt the company's overall business.

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

Salesforce Inc. (CRM) : Free Stock Analysis Report

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

Archer Daniels Midland Company (ADM) : Free Stock Analysis Report

Canadian Natural Resources Limited (CNQ) : Free Stock Analysis Report

Zoetis Inc. (ZTS) : Free Stock Analysis Report

Trane Technologies plc (TT) : Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research