Today's Must Read
Lowe's (LOW) Omni-Channel, Total Home Strategy to Aid Sales
Robust Revenues & Cash Flows Aid American Express (AXP)
Monday, November 22, 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 Alibaba Group Holding Ltd. (BABA), Lowe's Companies, Inc. (LOW), and American Express Co. (AXP). 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 Alibaba have underperformed the Zacks Internet Commerce industry over the past year (-48% vs. -31.5%). Strict business laws in China, lower mobile monetization, stiff competition from other players in the industry and integration risks are some of the major headwinds for BABA.
The Zacks analyst, however, believes that Alibaba has been benefiting from solid momentum across the Core Commerce segment as well as its robust New Retail strategy, which is gaining strong traction in the market. This is aiding growth in Tmall Import, Freshippo and Intime Department Stores. Alibaba’s strengthening cloud business on the back of its expanding customer base also continues to drive its performance.
Lowe's shares have gained +57.6% in the year to date period against the Zacks Building Products - Retail industry’s gain of +50.6%. The Zacks analyst believes that Lowe’s remains poised to benefit from demand for the home improvement market backed by investments in technology, merchandise category and strength in Pro business.
Lowe's second-quarter fiscal 2021 results benefited from the strong execution of strategies to meet broad-based demand. LOW’s new total home strategy that includes providing complete solutions for various types of home repair and improvement needs bodes well. The strategy is an extension of Lowe's retail-fundamentals approach.
Shares of American Express have gained +10% in the past six months against the Zacks Financial Miscellaneous Services industry’s gain of +8.4%. The Zacks analyst believes that improving revenues, increased T&E spending, strong balance sheet and a solid capital position are some of the major tailwinds.
Consumer spending on travel and entertainment, which carry higher margins for American Express, has been advancing well. With increasing use of its cards, however, expenses in the form of card member services and card member rewards are likely to go up. Marketing and business development expenses are also expected to rise.
Other noteworthy reports we are featuring today include The Boeing Co. (BA), Moderna, Inc. (MRNA) and Stryker Corp. (SYK).
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>>>