Friday, January 3, 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 Apple (AAPL), Amazon.com (AMZN) and Visa (V). 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 broader S&P 500 index over the past year (+102.6% vs. +27.4%). The Zacks analyst believes that the company is expected to benefit from continued momentum in the Services segment.

Non-iPhone devices are also expected to perform well, driven by strong demand for iPad, Apple Watch and AirPods. The company’s expanded portfolio, including MacBook Pro, Apple Watch Series 5 and Apple TV+, is a key catalyst. Moreover, the nomination of The Morning Show for multiple Golden Globe awards reflect Apple TV+’s content strength.

Additionally, the solid adoption of Apple Watch Series 5 is now helping the iPhone maker strengthen presence in the personal health monitor space. The Phase One deal between the U.S. and China is also a positive. Nevertheless, antitrust investigations, App Store-related lawsuits and Spotify’s complaint increase legal woes.

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

Shares of Amazon have gained +9.1% in the past three months against the broader S&P 500 index’s rise of +10.4%. The Zacks analyst believes that Amazon is benefiting from its aggressive retail strategies and distribution strength.

Rapid adoption of Prime driven by customer benefits and strengthening grocery services is aiding its top line. Further, Prime is driving its holiday sales growth. Also, expanding content portfolio is encouraging Prime membership. Further, strengthening AWS services and its growing adoption rate are aiding Amazon’s dominance in the cloud space. Furthermore, improving Alexa skills and features remain major positives.

Also, rising number of Alexa compatible devices is a tailwind. However, rising transportation cost related to its free one-day shipping service remains an overhang and is likely to increase further. Also, Amazon expects foreign exchange headwinds to continue impacting its top line.

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

Visa's shares have gained +8% over the past six months against the Zacks Financial Transaction Services industry's rise of +6.9%. The Zacks analyst believes that numerous acquisitions and alliances plus technology upgrades and effective marketing have paved the way for long-term growth and consistent increase in revenues.

Shift in payments to new methods such as mobile, cards, online and via wearables paves way for long term growth. The acquisition of Visa Europe is a long-term growth strategy for the company. Its international business has been expanding and adds diversification benefits. Its strong capital position is another positive.

However, high client incentives and expenses weigh on its operating margin. Also, adverse foreign exchange volatility imparts instability to the company’s earnings.

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

Other noteworthy reports we are featuring today include salesforce.com (CRM), Honeywell International (HON) and 3M Company (MMM).

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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>>>