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The Zacks Analyst Blog Highlights: Visa, salesforce, Honeywell, Phillips 66 and Delta Air Lines

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For Immediate Release

Chicago, IL – June 3, 2019 – 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: Visa (V - Free Report) , salesforce (CRM - Free Report) , Honeywell (HON - Free Report) , Phillips 66 (PSX - Free Report) and Delta Air Lines (DAL - Free Report) .

Here are highlights from Friday’s Analyst Blog:

Top Analyst Reports for Visa, salesforce and Honeywell

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 Visa, salesforce and Honeywell. 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 >>>

Visa’s shares have outperformed the Zacks Financial Transaction Services industry in the past year, gaining +24.3% vs. a +18.3% increase. The Zacks analyst thinks the company is gaining from consistent growth in payment volumes, cross-border volumes and processed transactions.

Numerous strategic acquisitions and alliances plus technology upgrades and effective marketing have paved the way for long-term growth and a consistent increase in revenues. The acquisition of Visa Europe is a long term growth strategy for the company. Its international business has been expanding and adds diversification benefits.

Visa is well-poised to gain from the growing electronic payment processing and a solid brand name. Its strong capital position facilitates business investments. However, high client incentives and operating expenses weigh on its operating margins. Adverse foreign exchange volatility imparts instability to the company’s earnings.

Shares of Outperform-rated salesforce have gained +7.2% in the past six months, underperforming the Zacks Computer Software industry, which has gained +11% over the same period. However, the Zacks analyst thinks salesforce is benefiting from strong growth across most of its business segments and deal wins in the international market.

Rapid adoption of its diverse cloud offerings given the growing demand for digital transformation remains a key catalyst. The effort to strengthen relationships with cloud companies like Amazon, Google and IBM are a positive. Additionally, strategic acquisitions like MuleSoft, Datorama and Cloudcraze is helping it to deliver strong growth.

However, stiff competition from Oracle and Microsoft is a concern. Currency fluctuations remain a key headwind. Additionally, increasing investments for international expansion and data centers is an overhang on near-term profitability.

Honeywell’s shares have outperformed the Zacks Diversified Operations industry in the past six months, gaining +11.9% vs. a +4.8% increase. The company believes that strength in its commercial aerospace, warehouse and process automation’s businesses as well as solid demand for its commercial fire and security products will boost revenues in the quarters ahead.

The Zacks analyst thinks stronger sales volumes, increased productivity and ongoing actions to boost commercial effectiveness will likely improve near-term profitability. For 2019, Honeywell raised earnings guidance from $7.80-$8.10 to $7.90-$8.15 per share.

However, the stock looks overvalued compared to the industry for the past six-month period. Also, the company is experiencing softness in its productivity products business due to lower volumes of sales in scanning and mobility products. However, rise in debt levels can increase its financial obligations.

Other noteworthy reports we are featuring today include Phillips 66 and Delta Air Lines.

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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.

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