Top Research Reports for Apple, Nike & Qualcomm

Tuesday, October 29, 2019

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 Apple Inc. (AAPL), Nike, Inc. (NKE) and Qualcomm Inc. (QCOM). 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 >>>

Apple’s shares have outperformed the Zacks Computer - Mini computers industry on a year to date basis (+57.8% vs. +55.3%). The Zacks analyst believes that the company’s focus on strengthening the Services business and a strong slate of upcoming app releases, including its streaming service Apple TV+, are key catalysts. The company is also expected to benefit from the launch of latest iPhones, refreshed Macbook, iPad and Apple Watch product lines.

However, the ongoing U.S.-China trade war does not bode well for the company. Legal woes have increased due to a lawsuit from customers related to App Store charges. The company has also been accused of unfair practices by Spotify.

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

Nike’s shares have outperformed the Zacks Shoes and Retail Apparel industry over the past one-year period (+21.9% vs. +19.3%). The Zacks analyst believes that NIKE will continue investing in key capabilities to aid digital transformation and deliver robust growth in fiscal 2020 and beyond. Further, it expects results for fiscal 2020 to be driven by brand recognition, robust innovation pipeline, and positive response from Nike Direct and wholesale partners.

However, higher SG&A expenses and tax rate, as well as adverse currency are headwinds. The company expects SG&A expenses to increase high-single digit in second-quarter fiscal 2020. Further, the company is likely to witness prominent impacts from the recently-enacted tariffs in the fiscal second quarter, which should partly mar the gross margin.

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

Qualcomm’s shares have outperformed the Zacks Wireless Equipment industry so far this year (+45.9% vs. +17.2%). The Zacks analyst believes that Qualcomm has been trying to retain its leadership in 5G, chipset market and mobile connectivity with several technological achievements and innovative product launches. The company has redefined the computing and mobile ecosystem across the globe with the launch of QCA6390 Connectivity SoC product.

However, aggressive competition in the mobile phone chipset market from low-cost rival chipmakers and leading smartphone makers is likely to hurt Qualcomm. Margins have also decreased sharply due to high operating expenses and R&D costs.

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

Other noteworthy reports we are featuring today include eBay Inc. (EBAY), Phillips 66 (PSX) and DTE Energy Company (DTE).

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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

Expanding Portfolio, Services Strength to Aid Apple (AAPL)

Strong China Business Contributes to NIKE's (NKE) Growth

Qualcomm (QCOM) Remains Poised to Gain from 5G Momentum

Featured Reports

Steady Investment Aids DTE Energy (DTE), Regulations Hurts

Per the Zacks Analyst, regular investments in infrastructure projects could drive DTE Energy's future performance.

Phillips 66 (PSX) Banks on Midstream Segment, Refining Hurts

The Zacks analyst expects Phillips 66 to gain on midstream business since there is huge demand for fresh pipeline networks in U.S. shale plays.

EcoPark & Franchise Business Drive Sonic Automotive (SAH)

Per the Zacks Analyst, EchoPark expansion is likely to boost Sonic Automotive's top-line growth. Further, its franchise business is also expected to grow organically via accretive acquisitions.

Premium Growth of Distribution Channels Aid Global Life (GL)

Per the Zacks analyst, improvement of life premium at American Income and Liberty National and consistent growth of operations at Global Life Direct Response is driving revenues at the company.

Solid Prospects in the Core Oncology Arm Drives Varian (VAR)

Varian has been gaining from strength in its core Oncology segment. The Zacks Analyst is also upbeat about growth prospects in China owing to recent exclusions from tariffs.

LogMeIn (LOGM) Rides on Product Strength, Marketing Efforts

Per the Zacks analyst, LogMeIn is gaining from solid contributions of its growth-oriented products Jive and LastPass. Increasing marketing efforts in support of new GoTo brand are also a positive.

Universal Forest (UFPI) Banks on New & Value-Added Products

Per the Zacks analyst, Universal Forest is poised to benefit from new and value-added products, solid housing starts, along with rising demand for repair and remodelling activities.

New Upgrades

United Therapeutics' (UTHR) Pipeline Strong Amid Competition

The Zacks analyst likes United Therapeutics' efforts to develop new delivery mechanisms for Remodulin and expanded indications for other PAH drugs like Orenitram and Tyvaso amid increased competition.

FTI Consulting (FCN) Benefits from International Businesses

The Zacks analyst believes that FTI Consulting's international operations help expand its geographic footprint, mitigate risks of material losses and contribute significantly to top-line growth.

eBay (EBAY) Rides On Strong Marketplace & Mobile Growth

The Zacks analysts believes that growth in company's core marketplace business, payment initiatives, international expansion and mobile strategy will continue to be the growth drivers.

New Downgrades

LendingTree (TREE) Faces Rising Costs & Low Mortgage Revenues

Per the Zacks analyst, investments in product development costs and advertising expenses are likely to weigh on LendingTree's expense base. Also, lower mortgage revenues remain a concern.

Carbohydrate Solutions Unit a Worry for Archer Daniels (ADM)

Per the Zacks analyst, softness in Archer Daniels' Carbohydrate Solutions segment is likely to continue. Weakness in starches & sweeteners in North America, and negative ethanol margins are culprits.

Weakness in Asia Pacific & Forex Woes to Hurt Graco (GGG)

Per a Zacks analyst, Graco's (GGG) results will likely suffer from weakness in Asia Pacific operations. Also, forex woes and unfavorable factory volume will be concerns.

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QUALCOMM Incorporated (QCOM): Free Stock Analysis Report
Phillips 66 (PSX): Free Stock Analysis Report
NIKE, Inc. (NKE): Free Stock Analysis Report
eBay Inc. (EBAY): Free Stock Analysis Report
DTE Energy Company (DTE): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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