Today's Must Read
Buyouts to Boost United Technologies' (UTX) Growth Prospects
Order Growth, Stable Cash Flow Aids Lockheed Martin (LMT)
Thursday, October 4, 2018
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 Adobe (ADBE), United Technologies (UTX) and Lockheed Martin (LMT). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Buy-ranked Adobe’s shares have gained +80% over the past one year, outperforming the Zacks Software industry which has increased +37.7% over the same period. The Zacks analyst thinks Adobe’s creative products are continuing to drive its top-line growth.
The company is currently benefiting from strong demand for its innovative solutions and growing subscriptions for its cloud application. Adobe has been making great efforts toward establishing its presence in cloud-related software areas such as documents and marketing. Adobe Experience Manager, which enables brands to offer a personalized experience, is also witnessing robust growth.
Adobe’s market position, compelling product lines, continued innovation, solid adoption of Creative Cloud and Adobe marketing cloud are major positives. However, lower end-market demand and exposure to Europe remain overhangs.
Shares of Buy-ranked United Technologies have gained +12.8% over the past three months, outperforming the Zacks Diversified Operations industry, which has increased +7.3% over the same period. The company continues to invest in innovative products through higher engineering spend, delivering value to its customers and securing orders that will drive top line growth in future.
The Zacks analyst thinks stronger Otis, Climate Control and Security, Pratt & Whitney and Aerospace Systems sales will continue to drive the company's revenues. Also, the buyout of S2 Security (completed recently) will help in solidifying the company's UTC Climate, Controls & Security segment.
Moreover, the company has received approval from the U.S. Department of Justice from the acquisition of Rockwell Collins. Higher revenues and cost-cutting measures will help in boosting the company's profitability in the quarters ahead. In the past 60 days, earnings estimates on the stock remained stable for 2018 while increased for 2019.
Buy-ranked Lockheed Martin’s shares have gained +10.4% over the past one year, underperforming the Zacks Aerospace Defense sector, which has gained +24% over the same period. The Zacks analyst emphasizes that Lockheed Martin, being the largest defense contractor in the world, enjoys a strong demand for its high-end military equipment in domestic as well as international markets.
Consequently, strong order growth has been a primary growth driver for this company. Lately, the company has been witnessing strong demand for its equipment, ranging from C-130J aircraft in France and Germany to helicopters in Poland to missile defense systems in the Asia-Pacific, Europe, and Middle East regions.
The company continues to be a strong cash generator, helping it to take important cash deployment decisions. However, the company faces intense competition for its broad portfolio of products and services in both domestic and international markets.
Other noteworthy reports we are featuring today include CVS Health (CVS), Aetna (AET) and Coca-Cola (KO).
5 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2018 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs. A bonus Zacks Special Report names this breakthrough and the 5 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.
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>>>