Thursday, May 21, 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 Intel Corp. (INTC), Adobe Inc. (ADBE) and Advanced Micro Devices, Inc. (AMD). 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 >>>
Intel’s shares have outperformed the broader S&P 500 index over the past year (+43.4% vs. +4.0%). In fact, Intel’s first-quarter results reflect gains across both PC-centric and Data-centric domains. Robust mix of high-performance second-generation Xeon Scalable processors and solid demand from Cloud service providers is expected to drive near-term growth.
The company is also making advancements in the IoT space, courtesy of product introductions and tie ups. Moreover, Intel is witnessing strong momentum for its first 10-nanometer (nm) mobile CPU.
However, declining PC total addressable market, higher expenses pertaining to 10-nm ramp up and constrained supply amid coronavirus outbreak in China remain concerns.
(You can read the full research report on Intel here >>>)
Adobe’s shares have gained +36.1% over the past one-year period against the Zacks Computer – Software industry’s increase of +25.9%. The Zacks analyst believes that Adobe is benefiting from strong demand for its creative products. The company’s Creative Cloud, Document Cloud and Adobe Experience Cloud products are driving the top-line growth.
Further, rising subscription revenues and solid momentum across the mobile apps are major positives. Additionally, growth in emerging markets, robust online video creation demand and improving average revenue per user are tailwinds.
However, the company has given weak guidance for the current quarter due to coronavirus scare which might delay enterprises booking decisions, reduce marketing spending and hurt consulting service implementations.
(You can read the full research report on Adobe here >>>)
AMD’s shares have outperformed the Zacks Electronics – Semiconductors industry over the past year (+105.7% vs. +30.8%). The Zacks analyst believes that AMD’s first-quarter results benefited from robust adoption of Ryzen, Radeon and latest second-gen EPYC server processors.
Further, accelerated adoption of AMD’s products in the data center industry is a key catalyst. Moreover, the growing clout of GPUs owing to increasing adoption of AI techniques and ML tools in industries like cloud gaming and supercomputing domain holds promise.
However, increasing expenses on product development amid stiff competition from NVIDIA and Intel are likely to dent profitability in the near future.
(You can read the full research report on AMD here >>>)
Other noteworthy reports we are featuring today include Mylan N.V. (MYL), Wynn Resorts, Ltd. (WYNN) and Everest Re Group, Ltd. (RE).
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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
Data Centric Growth Aids Intel (INTC) Amid Coronavirus Woes
Adobe (ADBE) Rides on Growing Adoption of Cloud Applications
AMD Banks on Strength in Product Portfolio & Partnerships
New Product Launches Boost Mylan (MYL) Amid Slowdown
Per the Zacks analyst, new launches should boost the top-line for Mylan. The merger with Upjohn is positive as well.
Customer Growth Aid CenterPoint (CNP), Demand Decline Woe
Per the Zacks analyst, steady customer growth continues to boost CenterPoint Energy’s results. Yet, coronavirus induced demand decline from commercial and industrial customers may hurt its earnings.
Continental (CLR) Banks on Oil-Rich Bakken, Debt High
The Zacks analyst believes that Bakken shale play, producing premium quality oil, will continue to aid Continental’s production growth.
Robert Half (RHI) Rides on Proviti Strength as Expenses Rise
Robert Half’s subsidiary, Protiviti, is in great shape, backed by strength across internal audit, technology and risk consulting services.
Wynn Resorts (WYNN) Banks on Macau Business, Coronavirus Ail
Per the Zacks analyst, Wynn Resorts initiatives to boost non-gaming revenues in Macau bode well. However, the coronavirus pandemic is likely to hurt results in the near term.
Expansion Strategies Boost Boyd Gaming (BYD), Coronavirus Ail
Per the Zacks analyst, Boyd Gaming is poised to benefit from portfolio expansion, acquisitions and increased focus on online betting.
Solid Insurance Business Aid Everest Re (RE), Cat Loss Ail
Per the Zacks analyst, Everest Re is poised to grow on the strength of its insurance and reinsurance operations. However, exposure to catastrophe inducing underwriting volatility concerns.
SINA (SINA) Benefits From Higher Fin-Tech Business Revenues
Per the Zacks analyst, SINA’s top-line growth is benefiting from higher revenues from the fin-tech business. Active user growth in SINA News app and SINA Finance app is a key catalyst.
Coronavirus-Led Demand Boosts Prestige Consumer (PBH) Sales
Prestige Consumer’s fourth-quarter sales were backed by solid consumption trends at core brands, thanks to COVID-19 led stock piling. The Zacks analyst expects such trends to fuel near-term sales.
Telephone and Data Systems (TDS) Gains from Fiber Impetus
Per the Zacks analyst, Telephone and Data Systems is likely to gain from diversified business model backed by strong fiber space and accretive subscriber base.
Low Investments, Leasing Activity to Hurt CBRE Group (CBRE)
Per the Zacks Analyst, CBRE Group’s performance is likely to be affected by moderation in investment volumes and leasing activity amid a choppy real estate market due to the coronavirus pandemic.
Coronavirus Impacts Concern Ralph Lauren’s (RL) Investors
Per the Zacks analysts, Ralph Lauren is likely to be hurt by the coronavirus-led uncertainties owing to store closures in North America since Mar 18 along with earlier shutdowns in China and Europe.
Low U.S. Demand & High Debt to Ail Harley-Davison (HOG)
The Zacks Analyst is concerned about the declining sales of Harley Davidson’s bikes, especially in the United States due to the consumer demographic shift as well as the company’s high debt levels.
Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report
Everest Re Group, Ltd. (RE) : Free Stock Analysis Report
Mylan N.V. (MYL) : Free Stock Analysis Report
Intel Corporation (INTC) : Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
Adobe Systems Incorporated (ADBE) : Free Stock Analysis Report
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