Wednesday, June 27, 2016

We have a long line-up of research reports from the Zacks analyst team in today's issue, but you should definitely check out the Adobe Systems (ADBE), Goldman Sachs (GS) and Honeywell International (HON) reports.

Adobe’s second quarter earnings results were particularly encouraging, primarily due to its transition from a licensing to a cloud-based subscription model. This has resulted in record Creative and Marketing Cloud revenue and impressive ARR (Annualized Recurring Revenue) growth. Marketed as a subscription model with attractive monthly pricing, the Zacks analyst believes that Adobe’s Creative Cloud offering will continue to be a catalyst for revenue growth in the coming years. (You can read the full research report on ADBE here.)

Banks and brokers have suffered as a result of the Brexit vote, but the sell-off may have offered an attractive entry point in a prestigious operator - Goldman Sachs.  The analyst believes that Goldman remains well positioned to weather any severe economic downturn, as the recent successful stress test reconfirms. The analyst likes Goldman's organic growth, expense management, strong capital position, steady capital deployment and business diversification. (You can read the full research report on GS here.)

Honeywell’s diversified business portfolio has the potential to earn consistent above-average returns and mitigate operating risks. The analyst likes the conglomerate' flexible yet disciplined focus on cost and productivity, and conservative balance sheet. The company’s focus on working capital management and free cash flow generation remain key positive attributes amid a challenging macroeconomic environment. (You can read the full research report on HON here.)

Other notable reports today include Schlumberger (SLB), Verizon (VZ) and Accenture (ACN).

•  Positive Earnings Mometnum at Accenture (ACN) 
• Worker Strike May Impact Verizon (VZ) 2Q16 Results
• Schlumberger's (SLB) Earnings Outlook Still Weak

You can find all of today's stock research reports here

Sheraz Mian

Director of Research