Today's Must Read
Amazon (AMZN) Banks on Holiday Initiatives & AWS Adoption
Visa (V) Rides on Acquisitions and Rising Business Volumes
Friday, January 3, 2020
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 Apple (AAPL), Amazon.com (AMZN) and Visa (V). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Apple’s shares have outperformed the broader S&P 500 index over the past year (+102.6% vs. +27.4%). The Zacks analyst believes that the company is expected to benefit from continued momentum in the Services segment.
Non-iPhone devices are also expected to perform well, driven by strong demand for iPad, Apple Watch and AirPods. The company’s expanded portfolio, including MacBook Pro, Apple Watch Series 5 and Apple TV+, is a key catalyst. Moreover, the nomination of The Morning Show for multiple Golden Globe awards reflect Apple TV+’s content strength.
Additionally, the solid adoption of Apple Watch Series 5 is now helping the iPhone maker strengthen presence in the personal health monitor space. The Phase One deal between the U.S. and China is also a positive. Nevertheless, antitrust investigations, App Store-related lawsuits and Spotify’s complaint increase legal woes.
Shares of Amazon have gained +9.1% in the past three months against the broader S&P 500 index’s rise of +10.4%. The Zacks analyst believes that Amazon is benefiting from its aggressive retail strategies and distribution strength.
Rapid adoption of Prime driven by customer benefits and strengthening grocery services is aiding its top line. Further, Prime is driving its holiday sales growth. Also, expanding content portfolio is encouraging Prime membership. Further, strengthening AWS services and its growing adoption rate are aiding Amazon’s dominance in the cloud space. Furthermore, improving Alexa skills and features remain major positives.
Also, rising number of Alexa compatible devices is a tailwind. However, rising transportation cost related to its free one-day shipping service remains an overhang and is likely to increase further. Also, Amazon expects foreign exchange headwinds to continue impacting its top line.
Visa's shares have gained +8% over the past six months against the Zacks Financial Transaction Services industry's rise of +6.9%. The Zacks analyst believes that numerous acquisitions and alliances plus technology upgrades and effective marketing have paved the way for long-term growth and consistent increase in revenues.
Shift in payments to new methods such as mobile, cards, online and via wearables paves way for long term growth. The acquisition of Visa Europe is a long-term growth strategy for the company. Its international business has been expanding and adds diversification benefits. Its strong capital position is another positive.
However, high client incentives and expenses weigh on its operating margin. Also, adverse foreign exchange volatility imparts instability to the company’s earnings.
Other noteworthy reports we are featuring today include salesforce.com (CRM), Honeywell International (HON) and 3M Company (MMM).
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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>>>