Top Research Reports for Deere & Company, Starbucks & SAP

Tuesday, September 20, 2022

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 Deere & Company (DE), Starbucks Corporation (SBUX) and SAP SE (SAP). 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 >>>

Deere & Company’s shares have outperformed the Zacks Manufacturing - Farm Equipment industry over the past year (+7.7% vs. +5.2%). The rally in commodity prices will continue to fuel agricultural equipment demand, encouraging farmers to boost spending on new farm equipment.

Replacement demand to upgrade old equipment will support Deere's top-line results in fiscal 2022. Demand for farm and construction equipment will continue to be supported by positive fundamentals, including favorable crop prices and increased infrastructure spending in fiscal 2022. Focus on investing in new products equipped with the latest technology will make farming automated, which will drive Deere's growth.

However, higher material and labor costs will dent margins while uncertainty related to the pandemic remians a concern. Deere’s earnings estimates for the fiscal 2022 have thus undergone downward revisions lately.

(You can read the full research report on Deere & Company here >>>)

Starbucks shares have declined -17.9% over the past year against the Zacks Retail - Restaurants industry’s decline of -11.5%. The company’s performance continues to be negatively impacted by dismal China results, higher-than-expected inflationary pressures, increased costs and a tight labor market.

The company believes that performance will be under massive pressure for the rest of the year. The company has suspended guidance for the fourth quarter. However, on a year-over-year basis, earnings declined but revenues improved, given higher U.S. comparable sales.

Starbucks has been benefiting from operating fundamentals such as a solid global footprint, successful innovations and digital offerings. North America comps continue to impress investors.

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

SAP’s shares have declined -40.6% over the past year against the Zacks Computer - Software industry’s decline of -24.2% on the back of a challenging operating environment in Europe. The company lowered full-year operating profit guidance due to the €350-million negative impact from the war in Ukraine and expectations of a continued decline in software licenses revenue.

Stiff competition and increasing costs to enhance cloud-based offerings is likely to exert pressure on the company’s profitability in the near term. Nevertheless, SAP’s performance is gaining from continued strength in its cloud business, especially the new Rise with SAP solution.

Momentum in SAP’s Business Process Intelligence platform, particularly the S/4HANA solutions along with healthy traction witnessed in SuccessFactors Employee Central, Ariba and Fieldglass, Qualtrics and other cloud-based offerings is noteworthy. The company also announced an additional share buyback plan.

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

Other noteworthy reports we are featuring today include Mondelez International, Inc. (MDLZ), Airbnb, Inc. (ABNB), and Intuitive Surgical, Inc. (ISRG).

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

Improving End Markets to Drive Deere (DE), Input Costs Ail

Store Growth Aids Starbucks (SBUX), Dismal China Comps Hurts

Solid Momentum in Cloud Business Driving SAP's Performance

Featured Reports

Mondelez (MDLZ) Hurt by Cost Inflation, Pricing a Breather
Per the Zacks analyst, Mondelez is seeing input cost inflation, especially for energy, transportation, packaging, wheat, dairy and edible oils. Increased pricing actions to fight inflation, bode well.

Intuitive Surgical's (ISRG) da Vinci System Helps Offset Risks
Per the Zacks analyst, growing adoption of Intuitive Surgical's da Vinci system is driving its revenues as well as helping offsetting risks like COVID-19 resurgences and rising costs.

RF Power & Communication Business Strength Aids NXP (NXPI)
Per the Zacks analyst, NXP is benefiting from solid momentum in RF power for base stations. Further, rising 5G network deployments are driving growth in its communication business.

Investments Aid Consolidated Edison (ED), Weak Solvency Woe
Per the Zacks analyst, systematic investment plan for infrastructure development and reliability tend to boost Consolidated Edison's growth. Yet, its weak solvency position remains a bottleneck.

Capacity Expansion, Cost Reduction to Aid Albemarle (ALB)
According to the Zacks analyst, Albemarle should gain from its actions to boost its global lithium derivative capacity. Its cost-saving actions will also support margins.

Efficient Hire Buyout, Technology Strength Aid Equifax (EFX)
Per the Zacks analyst, the acquisition of Efficient Hire boosts Equifax's ability to help clients manage their hiring and employment needs. Also, cloud data and technology transformation is a boon.

Improving Top line, Solid Cash Flows Benefit Allstate (ALL)
Per the Zacks analyst, Allstate benefits from a healthy revenue stream, courtesy of a broad product suite and pricing discipline. A strong capital position enables investment in business.

New Upgrades

Airbnb (ABNB) Banks on Strong Nights & Experiences Bookings
Per the Zacks analyst, strengthening gross nights booked in non-urban areas, and recovery in both long-distance and cross-border travel are benefiting Airbnb's Nights & Experience bookings.

Imperial (IMO) to Gain from Majority Holding by ExxonMobil
The Zacks analyst believes that Imperial Oil's financial backing by majority owner ExxonMobil adds to the company's financial stability and helps it to access cheap capital.n

Higher Rates, Restructuring Efforts to Aid Bank OZK (OZK)
Per the Zacks analyst, Bank OZK is poised for top-line growth supported by decent rise in loans and business-restructuring efforts. The interest rate hikes will aid margin growth in the near term.

New Downgrades

Huge Debt Load, Rising Costs Hurt Sunoco's (SUN) Margins
The Zacks analyst is worried about Sunoco's increasing debt load, which could lead to volatile earnings. The partnership's rising cost of sales remains concerning.

Worsening Asset Quality, Costs Hurt Ally Financial (ALLY)
Per the Zacks analyst, poor asset quality amid deteriorating economic outlook is major headwind for Ally Financial. Steadily rising expenses are expected to hurt its bottom-line growth to some extent.

Xifaxan Patent Litigation, Macro Challenges Hurt Bausch (BHC)
Per the Zacks analyst, the ongoing patent litigation for one of the top drugs Xifaxan will remain an overhang and an earlier-than-expected generic entry will adversely impact the top line.

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Starbucks Corporation (SBUX) : Free Stock Analysis Report
 
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
 
Deere & Company (DE) : Free Stock Analysis Report
 
SAP SE (SAP) : Free Stock Analysis Report
 
Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report
 
Airbnb, Inc. (ABNB) : Free Stock Analysis Report
 
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