Top Stock Reports for Nike, Oracle & Boeing

Monday, January 22, 2018

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 (NKE), Oracle (ORCL) and Boeing (BA). 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 last three months (+25.3% vs. +24.1%), driven by strength in international business and the global NIKE Direct business. This also led earnings and sales to top estimates in second-quarter fiscal 2018, marking the company’s 22nd straight earnings beat.

The second-quarter results reflected significant progress on the Consumer Direct Offense, which the company anticipates to continue in the second half of fiscal 2018. Additionally, the company’s strong line-up of product innovations to be launched in the back half of the fiscal year is likely to enhance performance.

However, lackluster sales trend in the company’s key North American market remains a headwind. Moreover, the company’s strained margins and higher SG&A expenses are likely to continue through fiscal 2018. Consequently, the company reiterated previously outlined soft outlook for fiscal 2018.

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

Shares of Oracle have underperformed the Zacks Software industry over the past year, gaining +27.5% vs. +39.5%. However, Oracle is benefiting from strong adoption of its cloud-based solutions.

The Zacks analyst thinks partnerships with the likes of Accenture are helping the company rapidly expand its cloud-base clientele. Moreover, this has helped in improving the company's competitive position against the likes of salesforce.com and Workday.

The company’s growing cloud market share will continue to drive top-line growth. Further, strong demand for the next-generation autonomous database supported by machine learning will likely drive top-line growth. Higher investments on IaaS platform will affect gross margin expansion in the near term. A strong U.S. dollar remains a headwind.

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

Buy-rated Boeing’s shares have surged +114% over the past year, outperforming the Zacks Aerospace & Defense sector, which gained +53.2% during the same time period. Notably, Boeing is the largest aircraft manufacturer in the world in terms of revenue, orders and deliveries, and one of the largest aerospace and defense contractors. In this regard, the company’s 20-year market outlook forecasts commercial jetliner demand to increase by 3.6%.

Boeing expects single-aisle jets to be the major driver behind this demand growth. Meanwhile, India appears to be another promising market for Boeing as the country is expected to become the world’s fastest growing aviation market. Yet, this aerospace company continues to face challenges from stiff competition as well as falling delivery numbers.

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

Other noteworthy reports we are featuring today include NetApp (NTAP), BB&T (BBT) and General Mills (GIS).

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

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

Consumer Direct Offense Plan to Aid Growth at Nike (NKE)

Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships

Boeing (BA) Up on Solid Jet Deliveries, Big Defense Orders

Featured Reports

Volume Growth Aids Kansas City Southern (KSU) Amid Cost Woes

The Zacks analyst likes the growth in overall carload volumes. Improvement in operating ratio is also a positive for the company.

Strong Demand for Flash & HCI Solutions Aids NetApp (NTAP)

The Zacks analyst believe that persistent innovation in flash-based solutions and strong adoption of hyper-converged infrastructure (HCI) will continue to benefit Netapp's top-line growth.

Acute Care, Behavioral Health Driving Universal Health (UHS)

Per the Zacks analyst the company's revenues growth is driven by solid performance at its segments- Acute Care and Behavioral Health, led by increase in license beds and higher patient admissions

Loan Growth, Fee Income Aid BB&T (BBT), Higher Costs Linger

Per the Zacks analyst, loan and deposit growth, rise in fee income, lower tax rates and higher interest rates will support BB&T's profitability.

Cost-Saving Plans Aid General Mills (GIS), Input Costs Hurt

Per the Zacks analyst, General Mills' plans of generating savings through its ongoing Holistic Margin Management efforts will help to boost earnings.

Industrial, Healthcare Client Wins Drive Plexus (PLXS)

Per the Zacks analyst, customer wins in the semiconductor capital equipment space and healthcare market is driving the top-line growth for Plexus.

Sensor Revenue Growth Aids DexCom (DXCM), Competition Rife

The Zacks analyst believes Dexcom is well positioned in the MedTech space, courtesy of solid contribution from Sensor and Transmitter revenues

New Upgrades

Rising Nutrient Demand, Vale Assets Buy Drive Mosaic (MOS)

The Zacks analyst thinks Mosaic is well placed to gain from increasing global demand for crop nutrients. The acquisition of Vale's fertilizer assets will also deliver significant synergies.

Palo Alto Networks (PANW) Banks on Product Upgrades, Buyouts

The Zacks analyst believes that Palo Alto Networks' consistent focus on product refreshes and strategic acquisitions like LightCyber will continue to boost revenues over the long run.

Republic Services (RSG) Focuses on Holistic Growth Model

Per the Zacks analyst, Republic Services is focused on enhancing its operations by streamlining the cost structure, improving revenue and seeking growth through profitable investment opportunities.

New Downgrades

Rising Digitization Costs Hurt First Republic Bank (FRC)

Per the Zacks analyst, rising expenses on digitization moves continues to impact First Republic Bank's bottom line. Moreover, further investments in digital initiatives might escalate costs.

Weak Patient Admissions Hurt Tenet Healthcare (THC) Revenues

Per the Zacks analyst the company's revenues have been suffering from reduction in admissions, inpatient and outpatient surgeries, emergency department visits and total outpatient visits.

Rising Long-Term Debt, Low Cash to Hurt Weatherford (WFT)

The Zacks analyst is concerned about Weatherford's escalating long-term debt load since 2016. Inadequate cash balance has worsened the situation.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Oracle Corporation (ORCL) : Free Stock Analysis Report
 
NetApp, Inc. (NTAP) : Free Stock Analysis Report
 
Nike, Inc. (NKE) : Free Stock Analysis Report
 
General Mills, Inc. (GIS) : Free Stock Analysis Report
 
BB&T Corporation (BBT) : Free Stock Analysis Report
 
Boeing Company (The) (BA) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research