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The Zacks Analyst Blog Highlights: Apple, American Express, Starbucks, Goldman Sachs and BCE

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For Immediate Release

Chicago, IL – February 19, 2020 – 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: Apple (AAPL), American Express (AXP - Free Report) , Starbucks (SBUX - Free Report) , Goldman Sachs (GS - Free Report) and BCE Inc. (BCE - Free Report) .

Here are highlights from Tuesday’s Analyst Blog:

Top Stock Analyst Reports for Apple, American Express and Starbucks

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, American Express and Starbucks. 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 >>>

Apple’s shares have outperformed the S&P 500 over the past year (+90.1% vs. +20.7%), with the momentum expected to continue despite the China challenges resulting from the virus outbreak. The Zacks analyst believes that iPhone sales benefited from trade-in programs, which doubled on a year-over-year basis. Wearables’ top-line growth was aided by strong demand for Apple Watch and AirPod.

Apple’s first-quarter fiscal 2020 results reflected continued momentum in the Services segment and a rebound in iPhone sales, which grew on a year-over-year basis. Wearables’ top-line growth was aided by strong demand for Apple Watch and AirPod. AirPod sales benefited from the launch of AirPod Pro, which features active noise cancellation.

Moreover, Apple Watch’s adoption rate grew rapidly. However, the company doesn’t expect to achieve second-quarter revenue guidance due to COVID-19, which is expected to hurt iPhone supply and demand in China. 

Shares of American Express have gained +9.3% in the past six months against the Zacks Financial Miscellaneous Services industry's rise of +7.2%. The Zacks analyst believes that the company’s expanding presence in the business-to-business market and investment in technology should drive long-term growth.

Its revenue growth is driven by a strong brand, continued efforts toward building business in new growth verticals, shift toward digital and a strong economy, which are driving consumer spending. Its strong capital position and disciplined capital management are impressive.

However, the company's reward expenses have been increasing over the past many quarters, which weigh on margins. Cost of card member services has been increasing over the years, indicating higher engagement level across its premium travel services.

Starbucks' shares have gained +6.7% over the past three months against the Zacks Food & Restaurants industry's rise of +9%. The Zacks analyst believes that Starbucks' business is rapidly growing in China, courtesy of innovative store designs and the success of the MSR program.

The company reported first-quarter 2020 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. However, the top and the bottom-line increased year over year owing to robust performance of Americas and international segments, store openings, enhanced customer experience, and digitalization.

The company believes that China and the Asia-Pacific region will drive business growth over the next five years. Notably, more than half of the company’s stores in China have been impacted by the coronavirus outbreak.

Other noteworthy reports we are featuring today include Goldman Sachs and BCE Inc.

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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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.