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Top Analyst Reports for Visa, salesforce & Honeywell

Mark Vickery

Friday, May 31, 2019

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 Visa (V), salesforce (CRM) and Honeywell (HON).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 >>>

Visa’s shares have outperformed the Zacks Financial Transaction Services industry in the past year, gaining +24.3% vs. a +18.3% increase. The Zacks analyst thinks the company is gaining from consistent growth in payment volumes, cross-border volumes and processed transactions.

Numerous strategic acquisitions and alliances plus technology upgrades and effective marketing have paved the way for long-term growth and a consistent increase in revenues. The acquisition of Visa Europe is a long term growth strategy for the company. Its international business has been expanding and adds diversification benefits.

Visa is well-poised to gain from the growing electronic payment processing and a solid brand name. Its strong capital position facilitates business investments. However, high client incentives and operating expenses weigh on its operating margins. Adverse foreign exchange volatility imparts instability to the company’s earnings.

(You can read the full research report on Visa here >>>).

Shares of Outperform-rated salesforce have gained +7.2% in the past six months, underperforming the Zacks Computer Software industry, which has gained +11% over the same period. However, the Zacks analyst thinks salesforce is benefiting from strong growth across most of its business segments and deal wins in the international market.

Rapid adoption of its diverse cloud offerings given the growing demand for digital transformation remains a key catalyst. The effort to strengthen relationships with cloud companies like Amazon, Google and IBM are a positive. Additionally, strategic acquisitions like MuleSoft, Datorama and Cloudcraze is helping it to deliver strong growth.

However, stiff competition from Oracle and Microsoft is a concern. Currency fluctuations remain a key headwind. Additionally, increasing investments for international expansion and data centers is an overhang on near-term profitability.

(You can read the full research report on salesforce here >>>).

Honeywell’s shares have outperformed the Zacks Diversified Operations industry in the past six months, gaining +11.9% vs. a +4.8% increase. The company believes that strength in its commercial aerospace, warehouse and process automation’s businesses as well as solid demand for its commercial fire and security products will boost revenues in the quarters ahead.

The Zacks analyst thinks stronger sales volumes, increased productivity and ongoing actions to boost commercial effectiveness will likely improve near-term profitability. For 2019, Honeywell raised earnings guidance from $7.80-$8.10 to $7.90-$8.15 per share.

However, the stock looks overvalued compared to the industry for the past six-month period. Also, the company is experiencing softness in its productivity products business due to lower volumes of sales in scanning and mobility products. However, rise in debt levels can increase its financial obligations.

(You can read the full research report on Honeywell here >>>).

Other noteworthy reports we are featuring today include Duke Energy (DUK), Phillips 66 (PSX) and Delta Air Lines (DAL).

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Mark Vickery
Senior Editor

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>>>

Today's Must Read

High Client Incentives, Operating Expenses Ail Visa (V)

salesforce (CRM) Rides on Portfolio Strength, Buyouts

Aerospace Segment Drives Honeywell (HON), High Costs Hurt

Featured Reports

Investment Plan Aids Duke Energy (DUK), Commodity Prices Hurt

Per the Zacks analyst, the company's robust five-year capital plan will drive earnings base growth. However, potential volatility in market prices of fuel and electricity can create operational risks.

Midstream Assets Aid Phillips 66 (PSX), Chemicals Unit Ails

The Zacks analyst believes that Phillips 66 is strategically positioned to gain from the growing need for U.S. midstream assets. However, weak petrochemical demand will hurt the Chemical business.

Delta (DAL) Gains From Dividends & Buybacks Amid Cost Woes

The Zacks analyst appreciates the company's efforts to reward shareholders. Uptick in passenger revenues are also impressive.

Monster Beverage (MNST) Gains From Strong Energy Drinks Unit

Per the Zacks analyst, Monster Beverage has been witnessing solid momentum in its energy drinks category driven by its Monster Energy brand.

Digital Innovations Aid TD Ameritrade (AMTD), High Costs Ail

Per Zacks analyst, TD Ameritrade's improved digital platforms have helped to boost client activities, thus aiding revenues.

High Card Sales Aid Discover Financial (DFS), Expenses Hurt

Per the Zacks analyst, increasing card sales volume, backed by alliances and partnerships has driven performance.

Cooper Companies (COO) Rides on Core CVI Amid Forex Woes

Per the Zacks analyst, strength in both Clariti and MyDay lenses continue to drive Cooper Companies' CVI segment.

New Upgrades

Debt-free Position & Revenue Growth Aid T. Rowe Price (TROW)

Per the Zacks analyst, debt free position with substantial liquidity has assisted in strengthening T. Rowe Price's capital leverage. Further, revenue growth remains a key strength.

Haemonetics (HAE) Gains Ground on Growing Plasma Business

Per the Zacks analyst, high end-market demand for biopharmaceuticals should continue driving Haemonetics' plasma unit growth. Ongoing development and launch of NexSys PCS should complement growth.

Strategic Initiatives, Acquisitions Aid Magellan Health (MGLN)

Per the Zacks analyst, a number of acquisitions in recent years in both its segment have led to inorganic growth, efficiency initiatives have led to cost saves, thus providing a support to margins.

New Downgrades

Pipeline Setbacks, Dependence on Eylea Hurt Regeneron (REGN)

Per the Zacks analyst, while Regeneron's lead drug Eylea maintains momentum, dependence on the drug for growth is a wory. Competition is expected shortly for Eylea which will hurt sales.

Debt & Higher Costs Continue to Hurt MGM Resorts (MGM)

The Zacks analyst is worried about MGM Resorts' heavy reliance on debt financing. The company is also facing increased costs of operations which is hurting margins.

Higher Content & Marketing Costs Hurt Lionsgate (LGF.A)

Per the Zacks analyst, Lionsgate's continuing investments on content, marketing and Starz are expected to hurt profitability amid intensifying competition.

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Visa Inc. (V) : Free Stock Analysis Report
Phillips 66 (PSX) : Free Stock Analysis Report
Honeywell International Inc. (HON) : Free Stock Analysis Report
Duke Energy Corporation (DUK) : Free Stock Analysis Report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report, inc. (CRM) : Free Stock Analysis Report
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