Top Research Reports for Adobe, Uber & Deere

Wednesday, January 6, 2021

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), Uber Technologies (UBER) and Deere & Company (DE). 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 outperformed the Zacks Software industry over the past year (+40% vs. +33.6%). 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, lower end-market demand and exposure to Europe remain overhangs. High acquisition expenses do not bode well for its margin expansion. 

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

Shares of Uber have gained +60.8% in the last six months against the Zacks Internet Services industry’s gain of +16.4%. The Zacks analyst believes that Uber’s delivery business is witnessing a boom with online order volumes from homebound customers surging.

Under such circumstances, the acquisition of Postmates (completed last December), which expands its delivery unit, provides a further boost. Moreover, the passage of Proposition 22 in California has removed a major hurdle for Uber. This allows the company to retain the independent contractor status for its drivers and delivery people in California, rather than classifying them as employees.

However, a significant downturn in the Mobility business is concerning. Although ride volumes have improved from the April lows, it is way below 2019 levels. Due to this ride's weakness, Uber expects to become profitable in 2021 instead of 2020, as was anticipated previously.

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

Deere’s shares have gained +24.8% over the past three months against the Zacks Farm Equipment industry’s rise of +20.2%. The Zacks analyst believes that growing reliance on advanced technology will continue to fuel Deere’s revenues. Additionally, the company's efforts to expand in precision agriculture will drive growth.

Deere projects fiscal 2021 net income to be between $3.6 billion and $4 billion. The company expects to benefit from the improving farm prospects and stabilization in the construction and forestry markets in fiscal 2021. Higher U.S. farm income forecasts and pick-up in commodity prices bode well for agricultural equipment demand, which will drive Deere’s top line.

Moreover, the company remains well poised for long term growth, backed by steady investments in new products with advanced technologies. Deere is focused on revolutionizing agriculture with technology in an effort to make farming automated, easy to use and more precise across the production process.

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

Other noteworthy reports we are featuring today include Applied Materials (AMAT), TJX Companies (TJX) and Dominion Energy (D).

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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 Creative Strength; Expenses A Concern

Delivery Business Aids Uber (UBER) Amid Mobility Weakness

Deere (DE) Rides on Investments & Cost Control Actions

Featured Reports

Applied Materials (AMAT) Rides on Logic Spending, Risks Remain

Per the Zacks analyst, strength in semiconductor equipment and strong customer spending in foundry and logic remain growth drivers.

TJX Companies (TJX) to Gain on Strength in HomeGoods Segment

Per the Zacks analyst, TJX Companies is likely to gain strength in the HomeGoods segment amid the pandemic.

Investment on Clean Assets & Infrastructure Aid Dominion (D)

Per the Zacks analyst, Dominion's planned investment to enhance clean electricity generation will boost its profitability.

Cost Reductions, Capacity Expansion Aid ArcelorMittal (MT)

Per the Zacks analyst, the company will gain from actions to expand its steel-making capacity and advanced high strength steel product line. Cost-cutting actions will also support its bottom line.

Increasing Commissions and Fees Aid Willis Towers (WLTW)

Per the Zacks analyst, Willis Towers is set to grow on rising commissions and fees driven by solid customer retention levels and growing new business.

FactSet (FDS) Benefits From Buyouts Amid Pricing Pressure

Per the Zacks analyst, acquisitions have been helping FactSet to broaden its product suite and expand geographically.

Gibraltar (ROCK) Rides on Renewable Segment, Industrial Hurts

Per the Zacks analyst, solid demand in the Renewable Energy and Conservation segment bodes well for Gibraltar. However, lower volume and challenging markets in Industrial business pose risks.

New Upgrades

Emergent's (EBS) CDMO Deals For COVID-19 Vaccine Aid Growth

Per the Zacks analyst, Emergent's CDMO deals with big companies to provide manufacturing services for helping them develop COVID-19 vaccine drive growth.

Reliable Assets, Free Cash Flow Plan Aid CNX Resources (CNX)

Per the Zacks analyst, CNX Resources' Marcellus and Utica shale assets will continue to boost production and its 7 years plan to generate $3 billion free cash flow will help to fortify balance sheet.

Zumeiz (ZUMZ) Digital Endeavors to Aid Top-Line Performance

Per the Zacks analyst, Zumiez is striving to expand e-commerce and omnichannel platforms to provide easy access to its products. During third-quarter fiscal 2020, comparable online sales rose 39.6%.

New Downgrades

Strict Regulatory Climate, Forex Woes Ail Syneos Health (SYNH)

The Zacks analyst is worried about Syneos Health's operations amid stringent governmental regulations in the biopharmaceutical industry. Unfavorable currency movement is an added headwind.

Decline in Occupancy, High Costs Hurt Ensign Group (ENSG)

Per the Zacks analyst, its reducing occupancy level due to the COVID-19 pandemic has been a concern for the company. Escalating operating expenses also bothers.

Scientific Games (SGMS) Hurt By Competition, High Debt Level

Per the Zacks analyst, Scientific Games is negatively impacted by intensifying competition and a highly leveraged balance sheet.

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
 
Uber Technologies, Inc. (UBER): Free Stock Analysis Report
 
The TJX Companies, Inc. (TJX): Free Stock Analysis Report
 
Deere & Company (DE): Free Stock Analysis Report
 
Dominion Energy Inc. (D): Free Stock Analysis Report
 
Applied Materials, Inc. (AMAT): Free Stock Analysis Report
 
Adobe Inc. (ADBE): Free Stock Analysis Report
 
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