Back to top

Image: Bigstock

The Zacks Analyst Blog Highlights: Amazon, Facebook, Thermo Fisher, Home Depot and Progressive

Read MoreHide Full Article

For Immediate Release

Chicago, IL –July 30, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Amazon (AMZN - Free Report) , Facebook Thermo Fisher (TMO - Free Report) , Home Depot (HD) and Progressive Corp (PGR - Free Report) .

Here are highlights from Friday’s Analyst Blog:

Top Stock Reports for Amazon, Facebook and Thermo Fisher

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 Amazon, Facebook and Thermo Fisher. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

Amazon’s shares have outperformed the broader market year to date by a wide margin. (the stock is up +54.6% vs. the +6.6% gain for the S&P 500 as a whole). Amazon reported strong second-quarter earnings driven by robust performance from Amazon Web Services (AWS) and retail. Advertising also had a strong growth in the quarter.

Moreover, retail continues to grow, driven by the Prime program, increasing engagement of Prime customers and solid third-party selection. The Zacks analyst thinks Amazon is benefiting from an expanding AWS enterprise customer base. Notably, AWS generates much higher margins than retail, positively impacting Amazon’s profitability.

Additionally, Amazon’s expanding distribution footprint bodes well for Prime. However, an anticipated increase in fulfillment cost prior to the holiday season can put margins under pressure. Moreover, intensifying competition in the cloud computing market from the likes of Microsoft Azure and Google cloud is a significant headwind.

Shares of Facebook have underperformed the S&P 500 index over the last three months, gaining +2.4% vs. +7.7%. Facebook’s second-quarter results were hurt by a slowing user base growth rate primarily due to the increased concerns over data privacy. Moreover, the company’s cautious guidance hurt investor’s confidence.

Facebook now expects expenses to increase at a faster rate as compared with revenues in 2019. Nevertheless, the Zacks analyst thinks the company’s cautious guidance reflects conservatism. Although aggressive investments would definitely hurt profitability in the near term, the initiatives related to improving ad transparency, removal of fake accounts and curbing fake news are prudent to ensure healthy growth in the long haul.

Moreover, the aggressive spending on securing the platform would surely help in rebounding user growth, going forward. However, slower Stories and Messenger monetization would hurt Facebook’s top-line growth in the near term. Increasing competition is also a concern.

Thermo Fisher’s shares have outperformed the Zacks Medical Instruments industry over the last year (+33% vs. -5.9%). Thermo Fisher ended the second quarter on a promising note. The Zacks analyst likes the company’s solid international performance on strong growth in China.

Thermo Fisher also saw strength in all end markets categorized either by customer type or geography. A series of product launches along with major progress in precision medicine initiatives aided the company’s performance. Moreover, the Patheon buyout has been substantially adding an impetus to the company’s value proposition for biopharma customers.

Also, Thermo Fisher’s initiative to buy Gatan in order to boost electron microscopy suite buoys optimism. On the flip side, in the reported quarter, Thermo Fisher’s business segments were impacted by unfavorable business mix. Also, competitive headwinds and rising operating costs continue to pose a threat.

Other noteworthy reports we are featuring today include Home Depot and Progressive Corp.

5 Medical Stocks to Buy Now

Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.

New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.

Click here to see the 5 stocks >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com                                      

http://www.zacks.com                                                   

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Amazon.com, Inc. (AMZN) - free report >>

Thermo Fisher Scientific Inc. (TMO) - free report >>

The Progressive Corporation (PGR) - free report >>