Top Research Reports for Amazon, Medtronic & Vertex
Friday, April 3, 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 (AMZN), Medtronic (MDT) and Vertex Pharmaceuticals (VRTX). 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’s shares have outperformed the S&P 500 over the past six months (+10.3% vs. -14.2%). The Zacks analyst believes that Amazon is benefiting from its aggressive retail strategies, distribution strength and robust Prime program.
Rapid adoption of Prime driven by customer benefits and strengthening grocery services is aiding its top line. Also, expanding content portfolio is encouraging Prime membership. Further, strengthening AWS services and its growing adoption rate are aiding Amazon’s dominance in the cloud space. Furthermore, improving Alexa skills and features remain major positives.
Also, rising number of Alexa compatible devices is a tailwind. However, rising transportation cost related to its free one-day shipping service remains an overhang and is likely to increase further. Further, foreign exchange headwinds are concerns. Additionally, rising cloud competition poses risk.
(You can read the full research report on Amazon here >>>)
Shares of Medtronic have lost -4% over the past year against the Zacks Medical Products industry’s fall of -15.8%. The Zacks analyst believes that within RTG, strong sales at Specialty and Brain Therapies more than offset slower growth in Pain Therapies.
Within CVG, despite the ongoing challenges, the company registered 1.8% growth at CER. The MITG arm recorded sturdy growth on strength across all businesses. The 2020 EPS guidance also looks promising.
However, its revenues lagging estimates, and escalating costs and expenses have been persistently pressurizing the margins. Unfavorable currency movement also deterred growth. The difficult macroeconomic conditions due to coronavirus outbreak is concerning as well.
(You can read the full research report on Medtronic here >>>)
Vertex’s shares have gained 8.1% over the past three months against the Zacks Biomedical and Genetics industry’s fall of -7.1%. The Zacks analyst expects Vertex’ sales in 2020 to be primarily driven by the uptake of Trikafta as well as higher international revenues due to additional ex-U.S. reimbursement arrangements in key countries like England and France.
Trikafta’s early approval and launch was a key milestone for Vertex. Trikafta is crucial for Vertex’s long-term growth as it has the potential to treat up to 90% of CF patients. Meanwhile, Vertex’s non-CF pipeline is progressing rapidly with data in multiple diseases expected in 2020. However, competitive pressure is rising in the CF market.
Also, Vertex’s dependence on just the CF franchise for growth is a concern. Estimates have declined ahead of Q1 earnings due to the coronavirus impact. Vertex has a positive record of earnings surprises in the recent quarters.
(You can read the full research report on Vertex here >>>)
Other noteworthy reports we are featuring today include Intuit (INTU), Bayer (BAYRY) and FirstEnergy (FE).
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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 Prime & AWS Amid Rising Competition
Medtronic (MDT) to Gain on Strength in Diabetes & Spine Arms
Vertex's (VRTX) Triple Combo CF Pill Key to Growth in 2020
Featured Reports
Intuit (INTU) Rides on Solid Product Portfolio & Cloud Shift
Per the Zacks analyst, Intuit is gaining from solid adoption of TurboTax Live offering, and its lending product - QuickBooks Capital.
Bayer's (BAYRY) Core Business Strong, Generic Threats a Woe
Per the Zacks analyst, Bayer's focus on the Life Science businesses and acquisitions to boost its portfolio is a huge positive.
Steady Investments to Aid FirstEnergy's (FE) Overall Growth
Per the Zacks analyst, transition to a fully-regulated utility and long-term investments under 'Energizing the Future' initiative will add to FirstEnergy's overall operational strength.
Digital Innovations Aid TD Ameritrade (AMTD), High Cost Ails
Per Zacks analyst, TD Ameritrade's improved digital platforms have helped it witness higher client activities, thus aiding revenues.
Growth Projects Aid Agnico Eagle (AEM) Amid Cost Woes
According to the Zacks analyst, the company will gain from progress in its key growth projects and its investment in assets to expand production.
Digital Platform Aids, Rising Costs Ail Western Union (WU)
Per the Zacks analyst, its digitally imitated money transfer business that includes westernunion.com and Mobile Money Transfer has led to significant growth.
United Rentals' (URI) End-Market Demand Strong Amid High Cost
Per the Zacks analyst, United Rentals gains from improved demand in construction end-markets served and accretive acquisitions.
New Upgrades
Expanding Diagnosis & Treatment Portfolio Aids Philips (PHG)
Per the Zacks analyst, Philips continues to benefit from growing Diagnosis & Treatment business on the back of partnerships, expanding geographical coverage and innovative solutions.
LogMeIn (LOGM) Gains On Coronavirus-Led Remote Working Trend
LogMeIn is poised to benefit from rising demand for offsite-working as growing incidences of coronavirus has led organizations across the globe allowing their employees to work from home.
Solid Product Offerings, Buyouts Aid Altra Industrial (AIMC)
Per the Zacks analyst, solid product offerings and the combination of Altra Industrial's operations with Fortive's Automation and Specialty platform will continue to lend momentum to the company.
New Downgrades
Natural Gas Import Losses Weigh on PetroChina (PTR)
The Zacks analyst is worried over PetroChina's losses on the domestic resale of imported natural gas below cost. The drop in the company's downstream segment earnings is also a concern.
Weak Demand, Soft Steel Prices to Weigh on Nucor (NUE)
Per the Zacks analyst, weakening U.S. steel prices is likely to affect Nucor's margins as prices will remain under pressure amid production increase.
Higher Tariffs & Softness in Demand to Weigh on RH (RH)
Per the Zacks analyst, market volatility, continued softness in the high-end housing market and coronavirus-related woes are expected to hurt RH's near-term results.
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Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report
Medtronic PLC (MDT) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
FirstEnergy Corporation (FE) : Free Stock Analysis Report
Bayer Aktiengesellschaft (BAYRY) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
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