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Top Research Reports for Amazon, Medtronic & CME

Tuesday, September 29, 2020

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 Amazon.com (AMZN), Medtronic (MDT) and CME Group (CME). 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 >>>

Amazon shares have lost some ground lately, but they have otherwise been standout perforers in the year-to-date period (+71.8% vs. +4.1% for the S&P 500 index). The Zacks analyst points out that Covid-19 pandemic has further cemented the online retailer's leadership position.  

Amazon has been gaining from coronavirus-led spike in online orders. Further, solid growth in its online stores sales is driving the top-line growth. Moreover, surge in online grocery shopping is a major positive. Additionally, Further, strong adoption rate of AWS is aiding the company’s cloud dominance.

Moreover, expanding AWS services portfolio is continuously helping Amazon in gaining further momentum among the customers. Additionally, improving Alexa skills and features are positives. Also, expanding smart home products offerings are tailwinds. However, accelerating coronavirus related expenses remain risks for the company’s margin expansion in the near term.

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

Shares of Medtronic have lost -4.6% over the past year against the Zacks Medical Products industry’s fall of -1.7%. The Zacks analyst believes that all major business groups of the company have been contributing to consistent revenue growth at CER, which highlights sustainability across groups and regions.

In the first-quarter of fiscal 2021, there was a faster than expected sales recovery. Procedure volumes began to recover this quarter in multiple markets globally. Also, the company drove market share gains in a number of large businesses. It saw significant growth in ventilators sales in the first quarter.

Based on the ongoing strong business recovery trend, Medtronic expects its fiscal second-quarter sales of most of the core segments to exceed or remain in line with the company average. On the flip side, the company registered significant year-over-year decline in these figures. Barring Respiratory, Gastrointestinal, & Renal, there were dismal performances across all business segments and geographies.

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

CME Group shares have lost -2.9% over the past six months against the Zacks Securities and Exchanges industry’s rise of 12.6%. The Zacks analyst believes that CME Group’s strong market position, driven by a variety of derivative product lines bodes well.

Efforts to expand and cross sell through strategic alliances, acquisitions, new product initiatives and a stable global presence are encouraging. Product innovation and growing proportion of volume from customers outside the United States have been aiding results. The company intends to focus more on over-the-counter clearing services.

However, escalating expenses due to higher technology cost are likely to put pressure on margin expansion. Diversified product portfolio is significantly exposed to volatile interest rate, firm government regulations and limited credit availability in unstable capital and credit market. Also, stiff competition also poses financial risk.

(You can read the full research report on CME Group here >>>)

Other noteworthy reports we are featuring today include Chevron (CVX), Intuitive Surgical (ISRG) and Duke Energy (DUK).

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Sheraz Mian

Director of Research                                                             

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

Amazon (AMZN) Rides on Surge in Online Orders, AWS Momentum

Ventilator Sales Aid Medtronic (MDT), Volume Recovery Starts

CME Group (CME) Banks on Improving Top Line, Expenses Hurt

Featured Reports

Chevron (CVX) to Boost Permian Position with Noble Buy

The Zacks analyst believes Chevron's Noble buyout will expand its position in the Permian Basin along with cash-generating offshore assets in Israel.

da Vinci Aids Intuitive Surgical (ISRG) Amid Margin Pressure

Per the Zacks analyst, strength in Intuitive Surgical's robot-based da Vinci surgical system, backed by procedural growth, boosts the company's growth prospects.

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

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

Workday (WDAY) Gains from Robust Traction of HCM Solution

Per the Zacks analyst, Workday's revenue growth continues to be driven by high demand for its cloud-based HCM solutions.

Growth Projects Aid Newmont (NEM) Amid Cost Woes

While the company faces headwind from high production costs, it should gain from investment in its growth projects and efforts to improve efficiency, per the Zacks analyst.

High At-Home Food Demand to Fuel General Mills' (GIS) Sales

Per the Zacks analyst, General Mills' sales have been gaining on solid demand amid the pandemic-led increased at-home consumption.

Fund-Raising Ability Aids Blackstone (BX), High Costs a Woe

Per the Zacks analyst, Blackstone's fundraising capability and asset inflows will likely aid profitability.

New Upgrades

Old Dominion (ODFL) Impresses With Dividends & Buybacks

The Zacks analyst is optimistic about Old Dominion's efforts to reward shareholders through dividends and share buybacks. The company's debt-control measures are also impressive.

New Award Wins, End-Market Diversification Aids Jabil (JBL)

According to the Zacks analyst, Jabil's top-line growth is benefiting from new contract wins in healthcare, automotive, cloud, and 5G. End-market diversification is also a key catalyst.

Strong Backlog & Cost Reductions to Drive Apogee (APOG)

Per the Zacks Analyst, Apogee will likely gain from its strong backlog across segments, the introduction of new products as well as focus on cost controls and performance improvement actions.

New Downgrades

Lower Interest Rates, Rising Expenses Hurt Wells Fargo (WFC)

Per the Zacks analyst, Wells Fargo's interest income remains under pressure due to a low rate environment.

Eni's (E) Petrochemical Product Sales Down on Weak Demand

The Zacks analyst is concerned about the weak demand in the automotive sector, which has been impacting Eni's petrochemical product sales.

Low U.S. Demand & High Debt to Ail Harley-Davidson (HOG)

Sales of Harley-Davidson's bikes, especially in the United States, are on the decline amid consumer demographic shift. The Zacks analyst is also worried about the firm???s elevated leverage of 83%.


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Medtronic PLC (MDT) : Free Stock Analysis Report
 
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
 
Duke Energy Corporation (DUK) : Free Stock Analysis Report
 
Chevron Corporation (CVX) : Free Stock Analysis Report
 
CME Group Inc. (CME) : Free Stock Analysis Report
 
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
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