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Top Stock Analyst Reports for Apple, American Express & Starbucks

Sheraz Mian

Tuesday, February 18, 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 Apple (AAPL), American Express (AXP) and Starbucks (SBUX). 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 >>>

Apple’s shares have outperformed the S&P 500 over the past year (+90.1% vs. +20.7%), with the momentum expected to continue despite the China challenges resulting from the virus outbreak. The Zacks analyst believes that iPhone sales benefited from trade-in programs, which doubled on a year-over-year basis. Wearables’ top-line growth was aided by strong demand for Apple Watch and AirPod.

Apple’s first-quarter fiscal 2020 results reflected continued momentum in the Services segment and a rebound in iPhone sales, which grew on a year-over-year basis. Wearables’ top-line growth was aided by strong demand for Apple Watch and AirPod. AirPod sales benefited from the launch of AirPod Pro, which features active noise cancellation.

Moreover, Apple Watch’s adoption rate grew rapidly. However, the company doesn’t expect to achieve second-quarter revenue guidance due to COVID-19, which is expected to hurt iPhone supply and demand in China. 

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

Shares of American Express have gained +9.3% in the past six months against the Zacks Financial Miscellaneous Services industry's rise of +7.2%. The Zacks analyst believes that the company’s expanding presence in the business-to-business market and investment in technology should drive long-term growth.

Its revenue growth is driven by a strong brand, continued efforts toward building business in new growth verticals, shift toward digital and a strong economy, which are driving consumer spending. Its strong capital position and disciplined capital management are impressive.

However, the company's reward expenses have been increasing over the past many quarters, which weigh on margins. Cost of card member services has been increasing over the years, indicating higher engagement level across its premium travel services.

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

Starbucks' shares have gained +6.7% over the past three months against the Zacks Food & Restaurants industry's rise of +9%. The Zacks analyst believes that Starbucks' business is rapidly growing in China, courtesy of innovative store designs and the success of the MSR program.

The company reported first-quarter 2020 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. However, the top and the bottom-line increased year over year owing to robust performance of Americas and international segments, store openings, enhanced customer experience, and digitalization.

The company believes that China and the Asia-Pacific region will drive business growth over the next five years. Notably, more than half of the company’s stores in China have been impacted by the coronavirus outbreak.

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

Other noteworthy reports we are featuring today include CVS Health (CVS), Goldman Sachs (GS) and BCE Inc. (BCE).

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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

iPhone, Wearables & Services Momentum Drives Apple (AAPL)

Solid Balance Sheet, Revenue Rise Aid American Express (AXP)

Unit Growth to Aid Starbucks (SBUX), Coronavirus Woes Stay

Featured Reports

Strong growth in the Pharmacy Services Aids CVS Health (CVS)

The Zacks analyst is bullish about specialty services developments like IngenioRx which may further boost Pharmacy Services revenues of CVS Health.

Business diversification Aids Goldman (GS), Legal Woes Linger

Per Zacks analyst, business diversification is a favorable factor for Goldman. However, legal issues linger.

BCE Gains from Bell Wireless & Bell Media Operating Segments

Per the Zacks analyst, BCE continues to benefit from subscriber base growth and higher revenue contribution from prepaid services.

Debt Reductions, Randgold Acquisition Aid Barrick (GOLD)

While Barrick faces challenges from higher production costs, it should gain from its actions to cut debt and synergies of the Randgold buyout, per the Zacks analyst.

Solid Cash Flow to Aid Canadian Natural (CNQ) Amid Term Loan

The Zacks analyst is impressed by Canadian Natural's growing free cash flow but is worried about the C$3.25-billion term loan that will likely worsen its balance sheet.

Focus on Renewables Aids AES Corp. (AES), Regulations Hurt

Per the Zacks Analyst, AES Corp.'s focus on renewables should boost growth led by rapid expansion of renewable overseas footprint.

Dunkin' Brands' (DNKN) Sales-Building Efforts Bode Well

Per the Zacks Analyst, Dunkin' Brands' focus on menu innovation, strong digital initiatives and aggressive expansion strategies are likely to drive growth.

New Upgrades

First American (FAF) Rides on Buyouts, Financial Flexibility

Per the Zacks analyst, a number of buyouts have helped First American to boost its core business, expand valuation and data business.

Investments in Truly Brand to Aid Boston Beer's (SAM) Sales

Per the Zacks analyst, Truly brand investments through launch of new flavors, NHL deal and new ad campaign, should bolster Boston Beer's position in hard seltzer category. This is likely to aid sales.

CyberArk (CYBR) Benefits From Strategic Buyouts & Deal Wins

Per the Zacks analyst, CyberArk is benefiting from its strategic acquisitions like Conjur and Vaultive. Moreover, deal wins in new as well as add-on business mostly from advisory firms are a tailwind.

New Downgrades

Declining Demand for Trucks to Hurt Cummins' (CMI) Sales

Per the Zacks Analyst, declining demand for heavy trucks - which is Cummins' chief end market - will likely mar its prospects in both domestic and international regions, going forward.

Arrow (ARW) Hurt By Currency Volatility, Margin Compression

Per the Zacks analyst, Arrow's high exposure to foreign currency exchange rate risk is an overhang on top-line.

Insperity (NSP) Continues to Grapple With Higher Expenses

The Zacks analyst is worried about Insperity's rising expenses due to heavy investments in growth, technology and product and service offerings.


Starbucks Corporation (SBUX) : Free Stock Analysis Report

The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report

CVS Health Corporation (CVS) : Free Stock Analysis Report

BCE, Inc. (BCE) : Free Stock Analysis Report

American Express Company (AXP) : Free Stock Analysis Report

Apple Inc. (AAPL) : Free Stock Analysis Report

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