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The Zacks Analyst Blog Highlights NIKE, Union Pacific, KLA, Airbnb and Republic Services
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For Immediate Release
Chicago, IL – February 21, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NIKE, Inc. (NKE - Free Report) , Union Pacific Corp. (UNP - Free Report) , KLA Corp. (KLAC - Free Report) , Airbnb, Inc. (ABNB - Free Report) and Republic Services, Inc. (RSG - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Top Research Reports for Nike, Union Pacific and KLA Corp.
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 NIKE, Inc., Union Pacific Corp. and KLA Corp. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
NIKE shares were in line with the Zacks Shoes and Retail Apparel industry over the past six months (+7.2% vs. +7.1%). The company reported solid second-quarter fiscal 2023 results and provided an upbeat sales view. It reported the 10th and the fifth straight quarters of earnings and revenue beat, respectively. Results gained from brand strength, robust consumer demand and an innovative product pipeline.
Its Consumer Direct Acceleration strategy, along with robust performance in its digital and DTC businesses bode well. Our Model estimates 5.5% revenue growth in fiscal 2023, with 13.2% growth on a currency neutral basis.
NIKE witnessed decline in gross margin due to higher markdowns to liquidate inventory, increased freight and logistics costs, elevated input costs and currency headwinds. The Zacks analyst expects soft gross margin and currency headwinds to continue hurting NIKE results in the quarters ahead.
Shares of Union Pacific have underperformed the Zacks Transportation - Rail industry over the past year (-20.2% vs. -11.2%). The company is facing escalation in fuel costs as oil prices move north which is worrisome. This phenomenon induced a 20% rise in operating expenses in 2022. Fuel costs surged 68% last year. The same is likely to be high in the March quarter as well.
However, Union Pacific's efforts to reward its shareholders even in the current uncertain scenario please us. The company hiked dividend twice in 2021. In May 2022, UNP further upped its quarterly dividend by 10%. The railroad operator is also active on the buyback front. In 2022, UNP bought back shares worth $6,282 million.
The railroad operator paid dividends worth $3,159 million in 2022. UNP's strong free cash flow generating ability supports its shareholder-friendly activities. The uptick in overall volumes (up 2% year over year in 2002) as labor woes ease is an added positive.
KLA shares have outperformed the Zacks Electronics - Miscellaneous Products industry over the past year (+9.6% vs. -18.4%). The company is benefiting from solid momentum across the Semiconductor Process Control and Specialty Semiconductor Process segments. Further, strong performance of the wafer inspection business owing to rising demand for advanced wafer inspection applications in leading-edge technology development remains a tailwind.
The Zacks analyst expects wafer inspection revenues to see a year-over-year rise of 3.9% in fiscal 2023. Additionally, growing investments across multiple nodes, and rising capital intensity in Foundry & Logic are driving the top-line growth. Considering these factors, our estimates suggest that total revenues are likely to rise 10.4% in fiscal 2023 from fiscal 2022.
However, weakness in the PCB, Display and Component Inspection remains a headwind. Also, the new U.S. export regulations, supply-chain disruptions and mounting expenses remain overhangs.
Other noteworthy reports we are featuring today include Airbnb, Inc. and Republic Services, Inc..
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights NIKE, Union Pacific, KLA, Airbnb and Republic Services
For Immediate Release
Chicago, IL – February 21, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NIKE, Inc. (NKE - Free Report) , Union Pacific Corp. (UNP - Free Report) , KLA Corp. (KLAC - Free Report) , Airbnb, Inc. (ABNB - Free Report) and Republic Services, Inc. (RSG - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Top Research Reports for Nike, Union Pacific and KLA Corp.
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 NIKE, Inc., Union Pacific Corp. and KLA Corp. 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 >>>
NIKE shares were in line with the Zacks Shoes and Retail Apparel industry over the past six months (+7.2% vs. +7.1%). The company reported solid second-quarter fiscal 2023 results and provided an upbeat sales view. It reported the 10th and the fifth straight quarters of earnings and revenue beat, respectively. Results gained from brand strength, robust consumer demand and an innovative product pipeline.
Its Consumer Direct Acceleration strategy, along with robust performance in its digital and DTC businesses bode well. Our Model estimates 5.5% revenue growth in fiscal 2023, with 13.2% growth on a currency neutral basis.
NIKE witnessed decline in gross margin due to higher markdowns to liquidate inventory, increased freight and logistics costs, elevated input costs and currency headwinds. The Zacks analyst expects soft gross margin and currency headwinds to continue hurting NIKE results in the quarters ahead.
(You can read the full research report on NIKE here >>>)
Shares of Union Pacific have underperformed the Zacks Transportation - Rail industry over the past year (-20.2% vs. -11.2%). The company is facing escalation in fuel costs as oil prices move north which is worrisome. This phenomenon induced a 20% rise in operating expenses in 2022. Fuel costs surged 68% last year. The same is likely to be high in the March quarter as well.
However, Union Pacific's efforts to reward its shareholders even in the current uncertain scenario please us. The company hiked dividend twice in 2021. In May 2022, UNP further upped its quarterly dividend by 10%. The railroad operator is also active on the buyback front. In 2022, UNP bought back shares worth $6,282 million.
The railroad operator paid dividends worth $3,159 million in 2022. UNP's strong free cash flow generating ability supports its shareholder-friendly activities. The uptick in overall volumes (up 2% year over year in 2002) as labor woes ease is an added positive.
(You can read the full research report on Union Pacific here >>>)
KLA shares have outperformed the Zacks Electronics - Miscellaneous Products industry over the past year (+9.6% vs. -18.4%). The company is benefiting from solid momentum across the Semiconductor Process Control and Specialty Semiconductor Process segments. Further, strong performance of the wafer inspection business owing to rising demand for advanced wafer inspection applications in leading-edge technology development remains a tailwind.
The Zacks analyst expects wafer inspection revenues to see a year-over-year rise of 3.9% in fiscal 2023. Additionally, growing investments across multiple nodes, and rising capital intensity in Foundry & Logic are driving the top-line growth. Considering these factors, our estimates suggest that total revenues are likely to rise 10.4% in fiscal 2023 from fiscal 2022.
However, weakness in the PCB, Display and Component Inspection remains a headwind. Also, the new U.S. export regulations, supply-chain disruptions and mounting expenses remain overhangs.
(You can read the full research report on KLA here >>>)
Other noteworthy reports we are featuring today include Airbnb, Inc. and Republic Services, Inc..
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.