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Research Daily

Sheraz Mian

Top Analyst Reports for FMX, Palo Alto Networks & Shopify


Trades from $3

Friday, February 16, 2024

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 Fomento Económico Mexicano, S.A.B. de C.V. (FMX), Palo Alto Networks, Inc. (PANW) and Shopify Inc. (SHOP). 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 FMX have outperformed the Zacks Beverages - Soft drinks industry over the past year (+52.9% vs. +9.1%). The company’s bottom-line improved year over year on robust sales growth, improved gross margin and lower interest expense.

Revenues improved on gains across all business units resulting from effective growth strategies and robust demand across markets. The company’s digital initiatives and business expansion endeavors have also been aiding results. Its efforts to expand in the U.S. specialized distribution segment bodes well.

However, FEMSA witnessed operating margin decline due to contraction at Proximity Americas, Health, and Fuel divisions due to higher labor expenses related to the labor reforms in Mexico and the inclusion of Proximity Europe.

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

Palo Alto Networks shares have outperformed the Zacks Internet - Software industry over the past six months (+76.8% vs. +46.5%). The company is benefiting from continuous deal wins and the increasing adoption of its next-generation security platforms, attributable to the rise in the hybrid work environment and the heightened need for stronger security.

PANW’s strong back-to-back quarterly performances reflect its sustained focus on product innovation, a shift in its business model to subscription-based services, platform integration and continued investments in the go-to-market strategy. The normalization of the supply chain is also aiding growth across the Products, Services and Subscription segments.

However, softening IT spending amid macroeconomic headwinds might hurt its near-term prospects. Forex headwinds and higher marketing and sales expenses are likely to continue hurting its profitability. Also, high acquisition-related expenses are denting margins.

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

Shares of Shopify have outperformed the Zacks Internet - Services industry over the past year (+92.6% vs. +52.5%). The company is benefiting from strong growth in the merchant base. In 2023, 35% more merchants from outside North America launched and grew their businesses on Shopify’s platform compared with 2022, reflecting growing international penetration.

It has been focused on winning merchants regularly based on a unified commerce platform and new merchant-friendly applications like Bill Pay, Tax Platform, Collective and the Marketplace Connect app. Strong adoption of these solutions holds promise.

Integration of Shop Pay Installments into the point-of-sale terminal and general availability of Pro makes it easier for merchants to discover and engage their customers. An expanding partner base that includes TikTok, Snap, Pinterest and Criteo is expected to expand its merchant base. However, raging inflation and cautious consumer spending are headwinds.t

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

Other noteworthy reports we are featuring today include Cadence Design Systems, Inc. (CDNS), Canadian Natural Resources Limited (CNQ) and The PNC Financial Services Group, Inc. (PNC).

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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