The Zacks Analyst Blog Highlights: Apple, Adobe, Canadian National, Kellogg and Delta Air Lines

For Immediate Release

Chicago, IL – March 20, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Apple AAPL, Adobe ADBE, Canadian National CNI, Kellogg K and Delta Air Lines DAL.

Here are highlights from Monday’s Analyst Blog:

Top Stock Reports for Apple, Adobe and Canadian National

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, Adobe and Canadian National. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

Apple’s shares are up +25.8% in the last year, outperforming the S&P 500 (up +16.2%) and the Zacks Technology sector (up +23.6%). The company is benefiting from iPhone X’s higher average selling price (ASP). The Services segment has become the new cash cow of the company.

Going forward, the Zacks analyst thinks Apple’s foray into fast-growing technologies like autonomous vehicle, artificial intelligence (AI) & AR/VR will drive growth. Moreover, Apple’s new investment plan will boost its subscription-based services business and put an end to the criticism it is facing for not creating enough jobs in the United States.

Apple is reportedly developing its own next-generation MicroLED screens, which will reduce its dependency on Asia-based display screen providers. Additionally, impressive cash balance, post-tax reforms, is expected to boost shareholder value. However, the sluggish demand for iPhone X remains a concern amid intensifying competition.

Shares of Buy-rated Adobe have gained +78.6% in the last one year, outperforming the Zacks Software industry which has increased +36.1% over the same period. Adobe reported strong fiscal first-quarter results driven by demand for the company’s innovative solutions and growing subscriptions for its cloud application.

Adobe has been making great strides toward establishing its presence in cloud-related software areas such as documents and marketing. Adobe Experience Manager, which enables brands to offer a personalized experience, is also witnessing robust growth.

The Zacks analyst remains optimistic about Adobe’s market position, compelling product lines, continued innovation, solid adoption of Creative Cloud and Adobe marketing cloud. However, end-market recovery appears slow, which remains a matter of concern.

Canadian National’s shares have gained +2.2% over the last one year, underperforming the Zacks Rail industry which gained +19.4% over the same period. The company has also underperformed Canadian Pacific Railway’s shares that have gained 21.5% in the same time period. In fact, the company has been facing a number of challenges related to network congestion recently, which have hurt its operational performance.

These operational issues might affect its customer base, thus adversely impacting company’s growth prospects. The company announced a change at the helm in order to primarily address the service issues. Deterioration in operating ratio due to high labor and fuel costs also does not bode well for the stock.

Moreover, Canadian National’s high debt levels remain potent threats. However, overall volume growth backed by impressive performances at some of its key units is encouraging. The Zacks analyst is also impressed by the 10% dividend hike announced by the company in January 2018.

Other noteworthy reports we are featuring today include Kellogg and Delta Air Lines.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
 
Canadian National Railway Company (CNI) : Free Stock Analysis Report
 
Apple Inc. (AAPL) : Free Stock Analysis Report
 
Adobe Systems Incorporated (ADBE) : Free Stock Analysis Report
 
Kellogg Company (K) : Free Stock Analysis Report
 
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