Friday, October 13, 2023

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 Inc. (ADBE), Deere & Co. (DE) 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 >>>

Adobe’s shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+66.3% vs. +39.4%). The company is benefiting from strong demand for its creative products. Adobe’s Creative Cloud, Document Cloud and Adobe Experience Cloud products are driving the top-line growth. Rising subscription revenues and solid momentum across the mobile apps are major positives.

Additionally, growth in emerging markets and robust online video creation demand remain tailwinds. Solid demand for Adobe’s commerce offerings and growing adoption of Acrobat. The Zacks analyst remains optimistic about Adobe’s market position, compelling product lines and continued innovation.

However, the ongoing tensions between Russia and Ukraine remain major headwinds for its 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 Deere have outperformed the Zacks Manufacturing - Farm Equipment industry over the past year (+8.4% vs. +7.1%). The company is witnessing solid growth in order levels, which is expected to aid its top-line performance in the forthcoming quarters. Strong replacement demand will continue to boost the company's results. Demand for its construction equipment will likely benefit from anticipated growth in infrastructural investments in the United States.

However, inflated material and labor costs are anticipated to impact the company's margins. Supply chain challenges also remain a challenge. Nonetheless, the company's efforts to improve pricing will somewhat help offset these headwinds.

Product launches equipped with the latest technology to automate farming will continue to provide Deere with an edge over its competitors. The company is poised to benefit in the long run from rapid growth in the global population and rising worldwide infrastructure needs.

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

American Express’ shares have outperformed the Zacks Financial - Miscellaneous Services industry over the past year (+12.2% vs. +4.9%). The company’s several growth initiatives, such as launching new products, reaching new agreements and forging alliances, are boosting its revenues.

Consumer spending on T&E, which carry higher margins for AmEx, is advancing well. Its balance sheet looks strong with manageable debt. Solid cash-generation abilities enable the pursuit of business investments and prudent deployment of capital.

However, with higher utilization of the firm’s cards, expense in the form of card member services and card member rewards is likely to go up and strain the margins. Marketing and business development expense is expected to rise. A high debt burden induces a rise in interest expenses. As such, the stock warrants a cautious stance.

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

Other noteworthy reports we are featuring today include Broadcom Inc. (AVGO), Sony Group Corp. (SONY) and Exelon Corp. (EXC).

Mark Vickery
Senior Editor

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>>>