Yahoo Finance Top Analyst Reports for Amazon.com, Cisco Systems & Southern Company
Monday, August 21, 2023
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, Inc. (AMZN), Cisco Systems, Inc. (CSCO) and The Southern Company (SO). 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.com shares have outperformed the Zacks Internet - Commerce industry over the year-to-date period (+58.6% vs. +35.6%). The company’s second quarter results were driven by Prime and AWS momentum. Strengthening AWS services portfolio and its growing adoption rate contributed well. Ultrafast delivery services and expanding content portfolio were beneficial.
Strengthening relationship with third-party sellers was a positive. Robust advertising business contributed well. Improving Alexa skills along with robust smart home products offerings were tailwinds. Amazon’s strong global presence and solid momentum among the small and medium businesses remain other positives.
Growing capabilities in grocery, pharmacy, healthcare and autonomous driving are other positives. Also, deepening focus on generative AI is a major tailwind. However, rising inflationary pressure remains a concern.
(You can read the full research report on Amazon.com here >>>)
Shares of Cisco Systems have modestly outperformed the Zacks Computer - Networking industry over the year-to-date period (+18.2% vs. +17.1%). The company is riding on the growing demand for its security, artificial intelligence and cloud products. Its security portfolio is benefiting from the launch of new data loss prevention, firewall and zero trust capabilities.
Zero Trust portfolio is riding on strong demand for its Duo offering. Optimized application experience is benefiting from strong demand for ThousandEyes. Its investments across security business, focusing on cloud-based and AI-driven offerings, is expected to drive growth.
Expanding growth opportunities for low-power-consuming technologies, including IoT, Silicon One and Power over Ethernet bodes well for Cisco. Acquisitions including Lightspin Technologies, Smartlook and Armorblox is expected to benefit top-line growth.
(You can read the full research report on Cisco Systems here >>>)
Shares of Southern Company have outperformed the Zacks Utility - Electric Power industry over the past six months (+6.0% vs. -3.4%). Leveraging the demographics of its operating territories, as in healthy population and job growth, the utility has gradually increased its customer base.
With good rate base growth and constructive regulation, the power supplier is expected to generate steady earnings and dividend growth in the coming years. However, its elevated leverage, along with continued timing and cost overrun issues over its Vogtle project, are major overhangs.
While the electric utility holding company’s debt-to-capitalization of 63.1% restricts financial flexibility, its $25-billion Vogtle nuclear plant has already exceeded budget and is years behind schedule. Therefore, Southern Company warrants a cautious stance from the investors.
(You can read the full research report on Southern Company here >>>)
Other noteworthy reports we are featuring today include Edwards Lifesciences Corporation (EW), Ross Stores, Inc. (ROST) and Devon Energy Corporation (DVN).
Director of Research
Sheraz Mian
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) Banks on Growing AWS Adoption & Prime Momentum
Cisco (CSCO) Benefits From Strong Security Products Adoption
Southern Company (SO) Buoyed by Regulated Customer Growth
Featured Reports
Edwards (EW) Rides on Solid TMTT Organic Sales, FX Woes Stay
The Zacks analyst is pleased with Edwards' TMTT business gaining from procedure volume growth, PASCAL precision uptake and new centers' openings. Yet, adverse currency impact dents the gross profit.
High Margin Assets & Cost Management Aid Devon Energy (DVN)
Per the Zacks analyst Devon's strong production from its high margins assets and efficient cost management will drive performance over the long run.
Krystexxa & Uplizna Boost Horizon (HZNP), Pending Lawsuit a Woe
Per the Zacks Analyst, Horizon's (HZNP) topline continues to be boosted by the sales of its key products like Krystexxa and Uplizna. However, the pending lawsuit possess a big threat to the company.
Solid Property Base, Technology to Aid Essex Property (ESS)
Per the Zacks analyst, Essex Property is likely to benefit from its solid property base and efforts to leverage technology for innovation and margin growth. However, high interest rates are a woe.
Globe Life (GL) Gains on Solid American Income Amid High Costs
Per the Zacks analyst, Globe Life is set to grow on solid American Income, which remains the largest contributor of premium and underwriting margin. However, high costs remain a concern.
Ubiquiti (UI) Rides on Proprietary Model, Inventory Balance
Per the Zacks analyst, Ubiquiti is likely to benefit from a proprietary network communication platform that is well equipped to meet customer needs as it optimizes inventory levels with market demand.
Robust Installation Business Aid TopBuild (BLD) Performance
Per the Zacks analyst, TopBuild is benefiting from favorable mix of installation business and strategic acquisitions. Also, focus on operational efficiencies and cost control initiatives bodes well.
New Upgrades
Solid Demand & Comps Drives Ross Stores (ROST) Top Line
Per the Zacks analyst, Ross Stores has been gaining from strength in cosmetics and accessories as well as growth across regions and solid comparable store sales. This led to Q2 sales growth of 7.7%.
Strong Automotive End-Market Aids onsemi's (ON) Prospects
Per the Zacks analyst, onsemi benefits from strong demand for its solutions in the automotive as well as industrial end-markets.
Pentair (PNR) Bets on Acquisitions, Transformation Program
Per the Zacks analyst, gains from the transformation program, contribution from acquisitions and strength in the Industrial and Flow Technologies and Water Solutions segments will aid results.
New Downgrades
Lower Volumes, Inventory Destocking Ail Sonoco (SON)
Per the Zacks analyst, lower volumes due to ongoing inventory destocking will impact Sonoco's results. A less favorable price/cost environment during the second half of 2023 will also impact earnings.
Health & Science Technologies Weakness to Hurt IDEX (IEX)
The Zacks analyst is worried about weakness in the Health & Science Technologies unit due to inventory destocking in the analytical instrumentation, life sciences, biopharma & semiconductor markets.
Southwest Airlines (LUV) Grapples With Rising Expenses
The Zacks Analyst is worried about the escalating expenses as they are likely to keep the bottom line under pressure.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Southern Company (The) (SO) : Free Stock Analysis Report
Devon Energy Corporation (DVN) : Free Stock Analysis Report
Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
