Yahoo Finance Top Analyst Reports for NIKE, Stryker & TJX
Wednesday, June 26, 2024
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, Inc. (NKE), Stryker Corp. (SYK) and The TJX Companies, Inc. (TJX). 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 >>>
Shares of NIKE have underperformed the Zacks Shoes and Retail Apparel industry over the year-to-date period (-14.1% vs. -9.2%). The company is witnessing persistence of inflationary pressures. Elevated demand creation expenses led to higher SG&A expenses.
Nevertheless, NIKE is benefiting from continued progress on Consumer Direct Acceleration strategy, compelling product innovation and digital leadership. This aided retail sales across Nike Direct business in third-quarter fiscal 2024.
The digital unit benefited from robust consumer trends, including momentum in the NIKE mobile app led by improved traffic and higher member buying frequency. It posted top and bottom-line growth in the quarter. Looking ahead, the company expects strong gross margin execution and disciplined cost management.
(You can read the full research report on Nike here >>>)
Stryker’s shares have outperformed the Zacks Medical - Products industry over the past year (+13.1% vs. -2.0%). The company exited first-quarter 2024 on a strong note with better-than-expected earnings and revenues. The company witnessed strong performance across its segments in the United States. Strong International sales also buoy optimism.
The momentum is expected to continue in 2024 on the back of ongoing procedural recovery and a strong order book for capital equipment. Stryker’s prospects in 2024 seem promising on the back of strong customer demand for its existing products as well as new launches. The company’s guidance for earnings and revenues appears encouraging. A solid solvency position is a plus.
However, inflationary pressure and supply-chain challenges continue to plague Stryker. Stiff competition in the MedTech space remains a woe. Contraction in both gross and operating margin is a woe.
(You can read the full research report on Stryker here >>>)
Shares of TJX have outperformed the Zacks Retail - Discount Stores industry over the past six months (+19.3% vs. +17.7%). The company’s off-price business model, strategic store locations, impressive brands and supply-chain management are working well. TJX has been benefiting from robust growth in its Marmaxx, HomeGoods and International segments, a trend that continued in first-quarter fiscal 2025.
Comparable store sales saw a rise, indicating sustained momentum. The company anticipates a 2-3% rise in comparable store sales for fiscal 2025. With a solid pre-tax margin, the company is poised for steady profitability, supported by improved merchandise margins. Also, management is on track with expansion efforts.
However, the company has been grappling with increased costs for a while now. Rising selling, general and administrative (SG&A) expenses are a concern for the company. Unfavorable foreign currency fluctuations might also act as a deterrent.
(You can read the full research report on TJX here >>>)
Other noteworthy reports we are featuring today include Infosys Ltd. (INFY), NXP Semiconductors N.V. (NXPI) and Verisk Analytics, Inc. (VRSK).
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
NIKE's (NKE) Digital Business to Aid Sales in the Near Term
Diversified Product Portfolio Drives Stryker's (SYK) Prospects
Expansion Efforts Fuel TJX Companies (TJX), High Costs a Woe
Featured Reports
Cloud, IoT, IT Security Services Demand Aid Infosys (INFY)
Per the Zacks analyst, Infosys is benefitting from strong demand for its services in the cloud, the Internet of Things (IoT), cyber security, and data and analytics.
Industrial & IoT Strength Benefits NXP Semiconductors (NXPI)
Per the Zacks analyst, NXP Semiconductors is benefiting from solid momentum across the industrial and Internet of Things (IoT) end market, driven strong demand for its scalable processing solutions.
Verisk (VRSK) Gains on Krug Buyout Despite Operational Risks
Per the Zacks analyst, the Krug acquisition is helping Verisk to expand its claims and casualty services across Europe. The chances of security breaches are concerning.
Centene (CNC) Rides on Growing Membership Amid Rising Costs
Per the Zacks analyst, solid Marketplace business, rising membership, several contract wins and acquisitions continue to drive Centene's revenues. However, elevated expenses remain a concern.
Discover Financial (DFS) Aided by Rising Interest Income
Per the Zacks Analyst, growth in net interest income has contributed to Discover Financial's top line. Digital transformation efforts drive margins.
Acquisition of ADESA Aids Carvana (CVNA), High Leverage Ails
Per the Zacks analyst, Carvana is likely to enhance the quality and quantity of resale vehicles by leveraging ADESA's existing infrastructure. But, a high debt-to-capital ratio of 1.06 is concerning.
Ovintiv (OVV) to Gain from Multi-Basin Assets, Debt a Worry
The Zacks analyst likes Ovintiv's well-established presence in some of North America's highest-quality oil and gas basins but is worried over its substantial debt burden of $5.5 billion.
New Upgrades
Uptake of Dragonfly System Benefits Onto Innovation (ONTO)
Per the Zacks analyst, Onto Innovation is gaining from robust demand for the Dragonfly inspection system. However, softness in advanced nodes business and lower services parts revenues is a concern.
High Rates & Strategic Moves Aid Commerce Bancshares (CBSH)
Per the Zacks analyst, Commerce Bancshares will continue to benefit from high rates and a balance sheet repositioning strategy. Solid capital distributions and earnings strength are other positives.
Louisiana-Pacific (LPX) Banks on Solid Siding & OSB Demand
Per the Zacks analyst, Louisiana-Pacific is witnessing surge in demand for Siding and OSB, highlighted by a significant increase in volume for ExpertFinish and BuilderSeries.
New Downgrades
Ironwood's (IRWD) Overdependence on Linzess Poses Concern
Per the Zacks analyst, Ironwood's heavy dependence on its sole marketed drug Linzess for growth is a woe. Also, competition for Linzess in the target market is intensifying, which is an overhang
Drop in Microinverters Demand Hits Enphase Energy (ENPH)
Per the Zacks analyst, unfavorable valuation, demand slowdown and supply constraints continue to hurt Enphase Energy. Trade tensions between the U.S and China also remains a concern.
Stiff Competition, Complexity of Services Ail Catalent (CTLT)
The Zacks analyst is worried about Catalent's operation in a competitive market. Its highly exacting and complex offerings, partly due to its manufacturing processes, is an added issue.
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NIKE, Inc. (NKE) : Free Stock Analysis Report
The TJX Companies, Inc. (TJX) : Free Stock Analysis Report
American Noble Gas Inc. (INFY) : Free Stock Analysis Report
Stryker Corporation (SYK) : Free Stock Analysis Report
NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report
Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report
