Top Analyst Reports for Adobe, Danaher, Equinor & Others
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Monday, May 9, 2022
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 Inc. (ADBE), Danaher Corporation (DHR), and Equinor ASA (EQNR). 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 >>>
Adobe shares have bit hard in the ongoing market pullback, with the stock down -33.4% in the year-to-date period vs. -24% decline for the Zacks Tech sector and -13.8% decline for the S&P 500 index. Driving this weakness is the sentiment shift against software and other Tech stocks in the current Fed tightening cycle. That said, Adobe is a highly profitable company with a market dominant position in its core business that sets it up to rebound strongly once conditions stabilize. The company’s Creative Cloud, Document Cloud and Adobe Experience Cloud products are helping it drive top-line growth. Additionally, rising subscription revenues and solid momentum across the mobile apps remain major positives.
Further, growth in emerging markets, robust online video creation demand, strong Acrobat adoption and improving average revenue per user remain tailwinds. We remain optimistic about Adobe’s market position, compelling product lines, persistent innovation and solid adoption of Creative Cloud and Adobe marketing cloud.
Further, the company’s strong balance sheet remains another positive. Yet, lower end-market demand and high acquisition expenses remain major overhangs.
(You can read the full research report on Adobe here >>>)
Danaher shares have declined -5.8% over the past year against the Zacks Diversified Operations industry’s decline of -19.5%. The Zacks analyst believes that company’s cost inflation and woes related to supply-chain restrictions might be worrying in the quarters ahead. High debts might inflate financial obligations and forex woes are likely to be concerning.
The company is poised to benefit from Danaher Business System (“DBS”), healthy rewards to shareholders, buyout benefits and product innovation in the quarters ahead. The impact of COVID-related testing is predicted to boost sales in the low-single digits for the second quarter.
(You can read the full research report on Danaher here >>>)
Shares of Equinor have outperformed the Zacks Alternative Energy – Other industry over the past year (+56.6% vs. +16.9%). The company is one of the premier integrated energy companies, with operations spreading across 30 countries. In 2021, the company completed 21 exploration wells, with 8 commercial discoveries.
To combat climate change, the company is investing actively in renewable energy projects, comprising power generation from solar and wind energy. This reflects the firm’s strong commitment to returning capital to shareholders. Given these tailwinds, Equinor is considered a preferred energy company to own now.
(You can read the full research report on Equinor here >>>)
Other noteworthy reports we are featuring today include Advanced Micro Devices, Inc. (AMD), Automatic Data Processing, Inc. (ADP), and Automatic Data Processing, Inc. (ADP).
Director of Research
Sheraz Mian
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
Life Sciences Business Drives Danaher (DHR), High Costs Ail
Equinor (EQNR) to Benefit From Rising Clean Energy Demand
Featured Reports
Robust Product Portfolio & Partnerships Aid AMD’s Prospects
Per the Zacks analyst, Advanced Micro Devices is benefiting from strong adoption of EPYC, Ryzen and Radeon processors. Moreover, alliances with Baidu, Amazon and Microsoft, bode well.
ADP Rides on Strategic Buyouts Amid Technological Challenges
The Zacks analyst likes ADP’s buyout strategy to boost its position in the human capital management market. Pressure to remain technologically updated to meet varying client demands remains a concern.
Boston Scientific (BSX) Grows Internationally Amid Forex Woe
The Zacks analyst is optimistic about Boston Scientific’s robust performance across the EMEA and Asia-Pacific regions. Yet, unfavorable foreign exchange headwinds continue to impact top line growth.
UBER Backed by Delivery Segment Growth & Mobility Recovery
The Zacks analyst is encouraged by the continued rise in Delivery demand, and ramp up in Mobility operations as ride volumes rebound from the pandemic-led lows.
Kimberly-Clark (KMB) Benefits From Solid Cost-Saving Efforts
Per the Zacks analyst, Kimberly-Clark is taking robust steps to lower costs. During the first quarter of 2022, it generated savings of $50 million from the Focus on Reducing Costs Everywhere program.
Steady Investment & Renewable Focus Aid Eversource (ES)
Per the Zacks analyst, Eversource’s investment of $18.1 billion within 2022-2026 time period will boost clean electricity generation, fortify its infrastructure and increase reliability of its service
Strength in Global Data Services Aid Intercontinental (ICE)
Per the Zacks analyst, Intercontinental is set to grow on solid portfolio, wide range of risk management services, cost synergies and solid capital position. Yet, rising expenses might weigh on margin
New Upgrades
Cheniere (LNG) to Gain from Sustained Gas Export Strength
The Zacks analyst believes that being one of the few liquefied natural gas exporters of the U.S., Cheniere Energy is set to capitalize on the sustained strength in shipments to Europe and Asia.
Assurant (AIZ) Gains on Solid Capital Position, Premium Growth
The Zacks analyst is optimistic about solid Global Lifestyle segment of Assurant, which will drive improvement in earned premiums and fees. Solid capital position supports capital deployment.
Penske (PAG) Rides High on Spree of Acquisitions
Strategic buyouts including Kansas City Freightliner, McCoy, Team Trucks Centers and Black Horse Carriers have been boosting Penske’s top-line growth, making the Zacks analyst bullish on the firm.
New Downgrades
Staffing Challenges & Inflation Hurt Brinker’s (EAT) Prospects
Per the Zacks analyst, Brinker has been experiencing Omicron-induced staffing and supply-chain challenges. Also, rise in commodity inflation and restaurant labor cost is a concern.
Weak Issuance Volume, Rising Costs Mar Moody’s (MCO) Profits
Per the Zacks analyst, subdues issuances on the back of current geopolitical and macroeconomic ambiguity is a major concern for Moody’s. Rising costs and pricing pressure are other headwinds.
Ironwood’s (IRWD) Sole Drug Linzess Face Rising Competition
Per the Zacks analyst, Ironwood’s dependence on sole marketed drug Linzess is a concern amid rising competition in the targeted segment. Any negative news related to Linzess would adversely impact the
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Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
Boston Scientific Corporation (BSX) : Free Stock Analysis Report
Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report
Danaher Corporation (DHR) : Free Stock Analysis Report
Adobe Inc. (ADBE) : Free Stock Analysis Report
Equinor ASA (EQNR) : Free Stock Analysis Report
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