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The Zacks Analyst Blog Highlights: NIKE, Workday, Allstate, Synopsys and HP

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For Immediate Release

Chicago, IL – May 26, 2020 – 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 (NKE - Free Report) , Workday (WDAY - Free Report) , Allstate (ALL - Free Report) , Synopsys (SNPS - Free Report) and HP (HPQ - Free Report) .

Here are highlights from Friday’s Analyst Blog:

Top Stock Reports for Nike, Workday and Allstate

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, Workday and Allstate. 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’s shares have outperformed the Zacks Shoes and Retail Apparel industry over the past year (+13.4% vs. +11%). The Zacks analyst believes that the use of its digital ecosystem as a key playbook to combat the COVID-19 crisis, has been receiving applause.

Notably, the company retained its positive earnings track record, with earnings and sales beat in third-quarter fiscal 2020. The NIKE Direct business displayed strength backed by more than 30% digital revenue growth across all geographies and Converse.

Nevertheless, the effects of store closures in China due to outbreak hurt Greater China’s revenues in third-quarter fiscal 2020. This resulted in lower sales mix in Greater China, which is its high margin geography, causing gross margin decline in the quarter. Further, the company expects soft results in the fiscal fourth quarter due to store closures.

Shares of Workday have lost -5.5% over the past six months against the Zacks Internet Software industry’s rise of +23.8%. The Zacks analyst believes that the company is likely to benefit from solid adoption of subscription and professional software solutions.

The buyout of Adaptive Insights is enabling it to help enterprises in making better business decisions with Adaptive Insights business planning cloud, which bodes well for its prospects. Further, extended capabilities and tools in Workday HCM and Workday Financial Management to enhance customer experience is a positive.

Workday’s foray into the platform-as-a-service market by launching the Workday Data-as-a-Service Platform also holds promise. However, stiff competition from Oracle and SAP is likely to limit margin expansion at least in the near term. Increasing investments on product enhancements are likely to put pressure on the bottom line.

Allstate’s shares have lost -23% over the past three months against the Zacks Insurance - Property and Casualty industry’s fall of -22.8%. The Zacks analyst believes that it is poised to grow on the back of its solid property and liability segment.

A number of initiatives that it took to improve profitability in its auto segment are now driving growth. A strong balance sheet and intelligent capital management are impressive. Acquisitions made recently should aid its inorganic growth.

Its thriving service business provides a diversified revenue stream. However, it is exposed to catastrophe losses. Escalating expenses might weigh on margins too. Low interest rates stress investment income as well. Further, the COVID-19-led decline in GDP and unemployment might affect premiums.  

Other noteworthy reports we are featuring today include Synopsys and HP.

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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 information about the performance numbers displayed in this press release.