Monday, May 13, 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 Boston Scientific Corporation (BSX), Arista Networks, Inc. (ANET) and Palo Alto Networks, Inc. (PANW). 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 >>>

Boston Scientific shares have outperformed the Zacks Medical - Products industry over the past year (+37.3% vs. -1.7%). The company is witnessing strength across target markets, despite macroeconomic concerns, currency headwinds and related cost inflation.

Strong worldwide demand for its Electrophysiology and Structural Heart lines, traction in Europe for its the next generation WATCHMAN FLX, as well as contribution from accretive acquisitions are important drivers. The Pain and Brain franchisees are expected to gain solid traction in 2024 banking on strong execution of core growth strategies.

The Electrophysiology arm received a strong boost on the FDA approval for FARAPULSE. The 2024 guidance indicating strong growth over 2023 builds confidence in the stock. On the flip side, mounting costs due to worldwide geopolitical issues are major concerns. FX headwinds continue to largely offset the company’s performance.

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

Shares of Arista Networks have outperformed the Zacks Communication - Components industry over the past six months (+45.9% vs. +37.2%). The company reported healthy first-quarter results with solid top and bottom-line growth year over year, driven by robust demand trends. Easing supply chain woes and steady customer additions backed by the company’s best-in-class portfolio strength ensured top-line expansion, while steady margin improvement contributed to earnings growth.

Both the bottom and the top lines beat the respective Zacks Consensus Estimate. Arista is likely to benefit from a software-driven, data-centric approach that helps customers build their cloud architecture and enhance the cloud experience. It expects a healthy improvement in gross margin, owing to the optimization of manufacturing output.

However, fierce competition in cloud networking solutions market is worrisome. Cautious spending behavior, primarily from cloud titan customers, is another concern.

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

Palo Alto Networks shares have outperformed the Zacks Internet - Software industry over the past year (+54.2% vs. +48.0%). The company has been 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 >>>)

Other noteworthy reports we are featuring today include HCA Healthcare, Inc. (HCA), American Electric Power Company, Inc. (AEP) and Cboe Global Markets, Inc. (CBOE).

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>>>