Yahoo Finance Top Research Reports for Nike, Morgan Stanley & Lockheed Martin
Wednesday, June 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 Nike, Inc. (NKE), Morgan Stanley (MS) and Lockheed Martin Corp. (LMT). 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 >>>
Nike’s shares have outperformed the Zacks Shoes and Retail Apparel industry over the past year (+11.8% vs. -11.2%). The company’s results gained from the Consumer Direct Acceleration strategy, compelling product innovation and solid online show.
Nike witnessed double-digit revenue growth across North America, EMEA and APLA. For fiscal 2023, it expects revenue growth in the high-single digits, up from the prior mentioned mid-single-digit growth and in line with the Zacks analyst estimate of 8.6% growth.
However, shares of Nike have lagged the industry in the past year. Nike witnessed decline in gross margin due to higher markdowns, increased freight and logistics costs, elevated input costs and currency headwinds. Also, elevated SG&A expenses are concerning.
(You can read the full research report on NIKE here >>>)
Shares of Morgan Stanley have outperformed the Zacks Financial - Investment Bank industry over the past year (+20.5% vs. +9.9%). The company’s restructuring initiatives to become less dependent on capital-markets-driven revenue sources, inorganic growth efforts, focus on corporate lending and higher interest rates, are expected to support the top line.
Supported by a solid capital position, the company's capital deployment activities seem sustainable. However, the ambiguity of the performance of the capital markets remains a headwind and is expected to affect the Institutional Securities segment’s revenue prospects. Elevated expenses due to investments in franchise and inflation are likely to hamper profits.
(You can read the full research report on Morgan Stanley here >>>)
Lockheed Martin’s shares have outperformed the Zacks Aerospace - Defense industry over the past year (+13.4% vs. +3.8%). The company has a strong backlog which boost its long-term growth. It remains the largest U.S. defense contractor that has a steady order inflow from its leveraged presence in the Army, Air Force, Navy and IT programs.
The U.S. budgetary provisions end to immensely boost this defense prime's business. International sales to aid its long-term growth. However, America and Turkey's tiff as a result of the latter accepting Russian products may hurt its component supply from Turkey.
Lockheed Martin is facing performance issues concerning some of its products, which may hurt its results. An uncertainty revolving around the possible sanction by China on Lockheed might impact the latter.
(You can read the full research report on Lockheed Martin here >>>)
Other noteworthy reports we are featuring today include PayPal Holdings, Inc. (PYPL), Canadian Pacific Kansas City Ltd. (CP) and Aon plc (AON).
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
Improved Traffic & Digital Trends Aid NIKE (NKE) Direct
Buyouts Support Morgan Stanley (MS), Capital Markets A Woe
Order Growth Boosts Lockheed (LMT), Tiff With Turkey Ails
Featured Reports
PayPal (PYPL) Benefits From Increasing Total Payment Volume
Per the Zacks analyst, PayPal's total payment volume is rising owing to solid adoption of Venmo and merchant services. Further, growing momentum across PayPal Checkout experiences is positive.
Freight Revenues Aid Canadian Pacific KC (CP) Amid High Debt
The Zacks analyst is impressed with Canadian Pacific KC's gradual recovery in freight-market conditions. However, low cash balance is worrisome.
Aon's (AON) Robust Business Generation Aids, High Costs Hurt
Per the Zacks analyst, business generation, strong retention and several acquisitions are helping AON enhance its capabilities, which, in turn, is boosting its profits. However, rising expenses remain
Investments, Cost Control to Aid Vale (VALE) Amid Low Prices
Per the Zacks analyst, investment in growth projects, focus on improving quality and productivity and lowering costs will fuel Vale's growth despite the current backdrop of low iron ore prices.
Strong Product Portfolio Aids DexCom (DXCM) Fight Competition
Per the Zacks analyst, DexCom strong product portfolio targeting the large and growing diabetes market is helping the company fight intensifying competition with entry new competing products.
Hess (HES) Banks on Offshore Guyana Crude Oil Discovery
The Zacks analyst likes Hess as it makes new oil discovery at the Lancetfish-1 well on the Stabroek Block, offshore Guyana. However, rising exploration expenses are hurting profit.
Sarepta's (SRPT) Overdependence on DMD Drugs a Woe
Though Sarepta Therapeutics has a strong commercial portfolio of drugs targeting DMD indication, the Zacks Analyst is concerned about the company's dependence on a single target market for revenues.
New Upgrades
Lennar's (LEN) Rides on Digital Marketing Initiatives
Per the Zacks analyst, Lennar (LEN) driving sales volume through the configuration of digital marketing platform & dynamic pricing model. Also, Asset-Light Strategy and cost control measures bode well
Prestige & Consumer Beauty Units to Drive Coty Inc. (COTY)
Per the Zacks analyst, impressive performance of Coty's Prestige & Consumer Beauty segments, driven by strength in consumer beauty and fragrance markets will continue to lend momentum to the company.
Iridium's (IRDM) Performance Gains from Higher Subscribers
Per the Zacks analyst, Iridium's performance is gaining from increasing subscribers. The company expects commercial service revenues to benefit from growth in IoT and ongoing activations.
New Downgrades
ADTRAN (ADTN) Plagued by Margin Woes, Supply Chain Turmoil
Per the Zacks analyst, ADTRAN (ADTN) is likely to be plagued by higher operating costs, continued investments to upgrade infrastructure, foreign exchange volatility and supply chain disruptions.
Soft Office Demand, High Interest Rates Hurt Vornado (VNO)
Per the Zacks analyst, a choppy office market and a high interest rate environment are expected to weigh on Vornado's growth in the near term.
High Costs, Rising Provisions Hurt Washington Federal (WAFD)
Per the Zacks analyst, higher expenses are likely to hamper Washington Federal's bottom-line growth. Further, deteriorating economic outlook will hurt the bank's credit quality in the near term.
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Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
Morgan Stanley (MS) : Free Stock Analysis Report
NIKE, Inc. (NKE) : Free Stock Analysis Report
Aon plc (AON) : Free Stock Analysis Report
Canadian Pacific Kansas City Limited (CP) : Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
