Tuesday, October 24, 2023

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Cisco Systems, Inc. (CSCO), Stryker Corp. (SYK) and Enbridge Inc. (ENB). 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 Cisco Systems have outperformed the Zacks Computer - Networking industry over the past year (+21.3% vs. +20.5%). The company is riding on growing demand for its security, artificial intelligence and cloud products. Its security portfolio is benefiting from the launch of new data loss prevention, firewall and Zero Trust capabilities.

Its Zero Trust portfolio is riding on strong demand for its Duo offering. Optimized application experience is benefiting from strong demand for ThousandEyes. Its investments across the security segment, focusing on cloud-based and AI-driven business, is expected to drive growth.

Expanding growth opportunities for low-power-consuming technologies, including IoT, Silicon One and Power Over Ethernet, bodes well for Cisco. Acquisitions including Lightspin Technologies, Smartlook and Armorblox are expected to benefit top-line growth.

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

Stryker’s shares have outperformed the Zacks Medical - Products industry over the year-to-date period (+8.7% vs. -11.0%). The company witnessed strong performance across its segments in the U.S. Strong International sales also buoy optimism.

The momentum is expected to continue into the second half of 2023 on the back of ongoing procedural recovery and a strong order book for capital equipment. Stryker’s prospects in 2023 seem promising on the back of strong customer demand for its existing products as well as new launches. The company’s guidance for earnings and revenues appears encouraging. A solid solvency position is a plus.

However, inflationary pressure and supply-chain challenges continue to hamper Stryker. Stiff competition in the MedTech space remains. Contraction in both gross and operating margin is a concern.

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

Shares of Enbridge have underperformed the Zacks Oil and Gas - Production and Pipelines industry over the past year (-9.9% vs. +6.2%). The company’s significant debt exposure is concerning. Also, increasing gas distribution costs coupled with rising operating costs is hurting the company's bottom line. As such, the stock warrants a cautious stance.

Nevertheless, Enbridge has the longest oil and liquid pipeline system in the world, which spreads across 17,809 miles. Hence, a significant portion of the midstream operator’s earnings is generated from transportation operations, driven by a string of long-term contracts.

Moreover, winter gas requirements will boost the company’s gas transmission business in the first and fourth quarter of each year. Enbridge has a strong commitment toward returning capital to shareholders.

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

Other noteworthy reports we are featuring today include Suncor Energy Inc. (SU), ON Semiconductor Corp. (ON) and Splunk Inc. (SPLK).

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>>>