Yahoo Finance Top Stock Reports for Amazon.com, Netflix & American Express
Monday, August 7, 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), Netflix, Inc. (NFLX) and American Express Co. (AXP). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Shares of Amazon.com have outperformed the Zacks Internet - Commerce industry over the year-to-date basis (+66.2% vs. +43.5%). 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 positives.
However, inflationary pressure, geopolitical tensions and foreign currency headwinds remain concerns. Rising transportation and fulfillment center costs are also concerns. Intensifying cloud competition poses a serious risk.
(You can read the full research report on Amazon.com here >>>)
Netflix shares have outperformed the Zacks Broadcast Radio and Television industry over the past year (+84.8% vs. +28.9%). The company is benefiting from growing subscriber base thanks to a robust portfolio. Crackdown on password-sharing and the introduction of paid sharing in more than 100 countries, which represents more than 80% of Netflix’s revenue base, is also expected to aid growth.
Netflix’s diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content, has been driving its growth prospects. It now expects revenue growth to accelerate in the second half of 2023.
However, stiff competition in the streaming space from the likes of Apple, Amazon Prime Video, HBO Max, Disney+, Peacock, Paramount+ and TikTok is a headwind. Netflix’s leveraged balance sheet and a higher streaming obligation are concerns.
(You can read the full research report on Netflix here >>>)
Shares of American Express have outperformed the Zacks Financial - Miscellaneous Services industry over the past year (+6.7% vs. -3.6%). The company’s several growth initiatives, such as launching new products, reaching new agreements and forging alliances, are boosting its revenues. The Zacks analyst expects the top line at around $60.8 billion in 2023.
Consumer spending on T&E, which carry higher margins for AmEx, is advancing well. Its balance sheet looks strong with manageable debt. Solid cash-generation abilities enable the pursuit of business investments. However, with higher utilization of the firm’s cards, expense in the form of card member services and card member rewards is likely to go up and strain the margins.
Marketing and business development expense is expected to rise. A high debt burden induces a rise in interest expenses. As such, the stock warrants a cautious stance.
(You can read the full research report on American Express here >>>)
Other noteworthy reports we are featuring today include Enbridge Inc. (ENB), Palo Alto Networks, Inc. (PANW) and CSX Corp. (CSX).
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
Amazon (AMZN) Banks on Prime Momentum & Growing AWS Adoption
Netflix (NFLX) Benefits from Paid Sharing & Robust Portfolio
Robust Revenues & Cash Flows Aid American Express (AXP)
Featured Reports
Enbridge's (ENB) Long-term Transportation Contracts Aid
Enbridge generates stable fee-based revenues from its long-term oil and gas transportation contracts. Yet, its significant debt exposure concerns the Zacks analyst.
CSX's Dividend Payouts Boost Prospects Amid Cost Woes
The Zacks analyst is impressed with CSX's efforts to reward its shareholders. However, high operating expenses, mainly due to elevated labor costs, are hurting its bottom line.
Phillips 66 (PSX) to Gain From Higher Distillate Fuel Demand
Phillips 66 is well-poised to benefit from higher distillate fuel demand amid changes in the marine fuel sulfur limits. Yet, its rising costs of producing refined products concerns the Zacks analyst.
Mobileye (MBLY) Buoyed by SuperVision System Amid Cost Woes
While Mobileye's state-of-the-art driver assist system, SuperVision, is a key growth driver of the firm, the Zacks analyst is worried about the rising operating expenses, which are limiting margins.
Increasing Transaction Fees Aids Cboe Global Market (CBOE)
Per the Zacks analyst, Cboe Global is set to grow on increasing transaction fees driven by trading volume growth given strength in its proprietary products. However, rising expenses concerns.
Solid Budget Aids Curtiss-Wright (CW) Amid Fuel Price Hike
Per the Zacks analyst, increasing U.S. defense budget should boost demand for Curtiss-Wright's nuclear propulsion equipment. Yet rising fuel price might hurt airline industry and in turn the stock
New Products to Aid Wix.com (WIX) Amid Stiff Competition
Per the Zacks analyst, Wix's performance is gaining from robust uptake of Wix Studio and other new artificial intelligence applications. However, stiff competition is a headwind.
New Upgrades
Palo Alto (PANW) Rides on Product Strength, Marketing Effort
Per the Zacks analyst, Palo Alto Networks is gaining from solid contributions of its growth-oriented products including Strata, Prisma and Cortex. Increasing marketing efforts are also positive.
Xylem (XYL) Rides on End-Market Strength & Evoqua Buyout
Per the Zacks analyst, resiliency across end markets, productivity savings, strong price realization and contribution from the Evoqua acquisition are expected to foster Xylem's growth.
Aspen (AZPN) To Benefit From Diversified Product Portfolio
Per the Zacks analyst, Aspen will benefit from increased demand across all business segment and frequent product launches. Also, synergies from acquisition is a tailwind.
New Downgrades
Columbia Sportswear (COLM) Troubled by High SG&A Expenses
Per the Zacks analyst, Columbia Sportswear is battling high SG&A costs, which rose 11% in second quarter. In 2023, SG&A expenses are likely to be 40.1-40.5% compared with the 39-39.2% expected before.
Inflationary Pressures Hurt Papa John's (PZZA) Prospects
Per the Zacks analyst, Papa John's operations are likely to be affected by inflationary pressures and rising interest rates. Also, lower than expected franchisees comp performance is a concern.
Higher Debt Level & Expenses to Hurt BOK Financial (BOKF)
Per the Zacks analyst, high debt levels and low liquidity make BOK Financial vulnerable to default on debt obligations. Also, an escalating expense base is likely to limit bottom-line growth.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
CSX Corporation (CSX) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
American Express Company (AXP) : Free Stock Analysis Report
Enbridge Inc (ENB) : Free Stock Analysis Report
Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
