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Research Daily

Sheraz Mian

Top Research Reports for Adobe, S&P Global & Arista Networks


Trades from $3

Friday, September 29, 2023

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Adobe Inc. (ADBE), S&P Global Inc. (SPGI) and Arista Networks, Inc. (ANET). 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 >>>

Adobe shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+50.0% vs. +32.8%) on the back momentum for the company’s Creative Cloud, Document Cloud and Adobe Experience Cloud products. We saw the impact of this favorable trend in rising subscription revenues and solid momentum across the mobile apps in the recently released quarterly numbers.

Growth in emerging markets, robust online video creation demand and solid adoption of Acrobat are tailwinds. We remain optimistic about Adobe’s market position, compelling product lines, continued innovation, strategic acquisitions and solid adoption of cloud applications.

However, the ongoing tensions between Russia and Ukraine remain headwinds for Digital Media segment. Also, high acquisition expenses do not bode well for its margin expansion.

(You can read the full research report on Adobe here >>>)

Shares of S&P Global have outperformed the Zacks Business - Information Services industry over the past year (+21.9% vs. +19.3%). The company remains well poised to gain from growing demand for business information services. Buyouts help innovate, increase differentiated content and develop new products.

Effective management execution has helped it generate solid cash flow which is utilized for growth initiatives. Dividend payments and share buybacks boost investors confidence and positively impact earnings per share.

However, S&P Global remains vulnerable to proceedings, investigations and inquiries with respect to the ratings provided, leading to legal charges, damages or fines. Growth initiatives, higher compensations and incentives raise the company's expenses. Decreasing current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.

(You can read the full research report on S&P Global here >>>)

Arista Networks shares have outperformed the Zacks Communication - Components industry over the year-to-date period (+52.0% vs. +25.0%). The company is likely to benefit from a software-driven, data-centric approach that helps customers build their cloud architecture and enhance the cloud experience for clients.

Strong emphasis on developing innovative solutions such as AI/ML-driven network architecture and WAN routing systems is driving top-line growth. Arista provides routing and switching platforms with industry-leading capacity, low latency, port density and power efficiency. Healthy traction in data center and cloud networking vertical is a tailwind.

However, the company expects a moderation in consumer spending, mainly from cloud titan customers owing to a challenging macroeconomic environment. High research and development costs, variable compensation and headcount-related charges are impeding margins. Intense competition in the cloud networking solutions is another concern.

(You can read the full research report on Arista Networks here >>>)

Other noteworthy reports we are featuring today include Hess Corporation (HES), Cincinnati Financial Corporation (CINF) and Exact Sciences Corporation (EXAS).

Director of Research

Sheraz Mian

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>>>

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