Today's Must Read
Lowe's (LOW) Omni-Channel, Total Home Strategy to Aid Sales
Store Growth to Aid Starbucks (SBUX), High Debt A Concern
Tuesday, October 19, 2021
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 Oracle Corporation (ORCL), Lowe's Companies, Inc. (LOW), and Starbucks Corporation (SBUX). 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 >>>
Shares of Oracle have outperformed the Zacks Computer Software industry in the year to date period (+52.2% vs. +34.4%). The Zacks analyst believes that Oracle’s growing cloud business and the latest autonomous database is expected to boost competitive position in the long term.
Healthy adoption of cloud-based applications, comprising NetSuite Enterprise Resource Planning (ERP), Fusion ERP and Fusion Human Capital Management (HCM) bodes well in the long haul is anticipated to drive the top line. Increased spending on product enhancements, especially toward cloud platform, amid increasing competition in the cloud domain from the established players like Amazon and Microsoft is likely to limit margin expansion though.
Lowe's shares have gained +27% over the past year against the Zacks Building Products - Retail industry’s gain of +23.7%. The Zacks analyst believes that sturdy growth across Pro business and the online platform is a major catalyst for growth. Improved omni-channel capabilities have been boosting sales on lowes.com.
The company remains well positioned to capitalize on demand for the home improvement market. Its new total home strategy also bodes well. The strategy is an extension of the company’s retail-fundamentals approach. Foreign currency exchange rate fluctuations and stiff competition from other industry players remain as major headwinds though.
Shares of Starbucks have lost -1.9% over the past six months against the Zacks Restaurants industry’s gain of +1.4%, but things seem to be improving for it lately. The Zacks analyst believes that the company has been benefiting from initiatives such as opening stores in new and existing markets, remodeling existing stores, controlling costs as well as aggressive product innovation and brand building.
Starbucks is strengthening its product portfolio with significant changes around beverages, refreshment, health and wellness, tea and core food offerings. Slower recovery in China remains a major concern though. It has narrowed both international and China same-store sales growth for fiscal 2021.
Other noteworthy reports we are featuring today include The Goldman Sachs Group, Inc. (GS), Automatic Data Processing, Inc. (ADP) and Becton, Dickinson and Company (BDX).
Director of Research
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>>>