Today's Must Read
Medtronic (MDT) Strong on Steadying CHRF Space, New Launches
Monsanto (MON) to Grow on Bayer's Buyout Deal & Innovations
Wednesday, September 6, 2017
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 Starbucks (SBUX), Medtronic (MDT) and Monsanto (MON). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Starbucks’ shares are up +0.6% year to date, underperforming the Zacks Food & Restaurants industry, which is up +8.1% over the same period. But the Zacks analyst likes Starbucks’s operating fundamentals such as solid global retail footprint, successful innovations, best-in-class loyalty program and digital offerings.
Again, digital initiatives like mobile order/pay, delivery services and third-party loyalty partnerships can stimulate stronger sales trends in the Americas. CPG growth across the world as well as China/Asia expansion will also lead to value creation.
However, incremental in spending is likely to create pressure on its bottom line in the near term. Also, economic, geopolitical and consumer headwinds continue to impact Starbucks' results.
Shares of Medtronic have underperformed the Zacks Medical Products industry over the last three months, losing -6.7% vs. a 0.3% gain. Apart from displaying successful integration and achievement of synergy targets, Medtronic’s major business groups continue to contribute to top-line growth which highlighted sustainability across all segments and geographies.
The stabilizing trend in the global Cardiac Rhythm & Heart Failure (CRHF) market is another upside. The Zacks analyst likes the solid growth trend in the U.S. as well as the healthy global acceptance of its advanced therapies. However, escalating costs and expenses are weighing on margins. Also, unfavorable foreign exchange continues to remain a drag.
Buy-rated Monsanto’s shares have outperformed the Zacks Agricultural Products industry over the last one year, gaining +12% vs. +9%. Increasing demand for crop-yield enhancing products, such as Roundup Ready 2 Xtend Soybeans, and launch of non-imitable technological solutions are likely to boost the company's top-line performance.
Further, robust top-line performance, higher planted acreage, as well as lower U.S. corn and soybean costs are expected to bolster bottom-line results in the near term. Also, the successful accomplishment of Bayer's buyout deal is anticipated to open up a number of opportunities for Monsanto.
Other noteworthy reports we are featuring today include Crown Castle (CCI), Halliburton (HAL) and Sprint (S).
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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>>>