Wednesday, April 21, 2021

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 (NKE), Applied Materials (AMAT), and Square (SQ). 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 >>>

Shares of NIKE have modestly lagged the Zacks Shoes and Retail Apparel industry in the last one-year period (+45.7% vs. +48%) as a result of lower revenues in the wholesale business and NIKE-owned stores due to the pandemic-led disruptions.

Nonetheless, the top and bottom-line improved year over year in third quarter, while earnings beat estimates for the third time. Furthermore, NIKE brand’s digital sales improved in double digits across North America, Greater China, and APLA, while experiencing growth in triple digits in EMEA.

Despite the uncertainty regarding the impacts of the pandemic, management is confident of its earlier-stated fiscal 2021 view. It continues to anticipate low to mid-teens revenue growth for fiscal 2021.

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

Applied Materials shares have gained +113.4% over the last six months against the Zacks Semiconductor Equipment - Wafer Fabrication industry’s gain of +74.3%. The Zacks analyst believes that Applied Materials is being driven by strong momentum across Semiconductor Systems and Applied Global Services.

Further, solid demand for silicon in several applications across various markets remains a tailwind. Additionally, growing momentum among long-term service agreements is contributing well.

Meanwhile, increased customer spending in foundry and logic on the back of rising need for specialty nodes in automotive, power, 5G rollout, IoT, communications and image sensor markets, is a major positive. However, mounting expenses are a major concern. Also, rising competition poses risk to the company’s market position.

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

Shares of Square have gained +12.1% in the past three months against the Zacks Internet Software industry’s loss of -14.1%. The Zacks analyst believes that Square is benefiting from strong Cash App engagement and its expanding customer base.

Additionally, the company’s strengthening momentum across sellers and online channels, and growing card-not-present GPV are expected to remain major tailwinds. Moreover, robust online products, such as Square Online Store, Invoices, Virtual Terminal and eCommerce API are likely to accelerate the GPV growth in the near term.

However, uncertainties related to the COVID-19 pandemic remain concerns. Higher investments and increasing product development expenses might hurt margins. Rising competition and foreign exchange headwinds remain concerns.

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

Other noteworthy reports we are featuring today include Dominion Energy (D), Boston Scientific (BSX) and Petrobras (PBR).

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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

Strength in NIKE's (NKE) Digital Business Aids Top Line

Applied Materials (AMAT) Rides on Foundry & Logic Spending

Square (SQ) Banks on Solid Cash App Adoption, Bitcoin Growth

Featured Reports

Investment on Clean Assets & Infrastructure Aid Dominion (D)

Per the Zacks analyst, Dominion's planned investment in the range of $32.2B to enhance clean electricity generation and strengthen its infrastructure, will boost its profitability.

MedSurg Aids Boston Scientific (BSX) amid the Pandemic

The Zacks analyst believes, Boston Scientific's MedSurg arm, with a higher mix of non-deferrable procedures, will recover faster than the rest of its business segments.

Pre-Salt Reserves Boosts Petrobras (PBR), Debt Pile Hurts

Petrobras' stakes in Brazil's pre-salt oil reservoirs should boost its earnings outlook, however, the Zacks analyst is concerned about the company's huge debt load.

Catena Technologies Buyout Aids IHS Markit (INFO), High Debt Ails.

The Zacks analyst is optimistic about Catena Technologies' acquisition, which enhances IHS Markit's trade reporting services.

Brown-Forman's (BF.B) Solid Underlying Sales Trend Bode Well

Per the Zacks analyst, Brown-Forman boasts a robust underlying sales trend driven by gains in the US and developed international markets, as well as improvement in emerging markets.

Steady Investment & Renewable Focus Aid Eversource (ES)

Per the Zacks analyst, Eversource's investment of $17.03 billion is likely to boost clean electricity generation, fortify its infrastructure and increase the reliability of its services.

Equity Residential (EQR) to Gain from Improving Rental Demand

Per the Zacks analyst, Equity Residential will likely benefit from improving demand for apartment units and occupancy level.

New Upgrades

Ralph Lauren's (RL) Digital Business Investments Aid Sales

Per the Zacks analyst, Ralph Lauren is witnessing strong business momentum owing to investments in digital and omnichannel capabilities.

Avanos (AVNS) Gains Ground on Core Chronic Care Segment

Avanos has been gaining consistently from its Chronic Care arm. The Zacks analyst is optimistic about the recent FDA approval for the new 80-Watt COOLIEF Radiofrequency System.

Strong Pulp Demand & Cost Control Actions Aid Domtar (UFS)

Per the Zacks analyst, ongoing demand for softwood and fluff pulp triggered by the requirement in tissue and towel and expected benefits from cost control actions will drive growth for Domtar.

New Downgrades

Higher Input Costs, Operational Headwind Ail Mosaic (MOS)

According to the Zacks analyst, higher raw material costs due to tight supply will hurt the company's margins. It also faces a headwind from operational issues in the Fertilizantes segment.

Weak Coatings Demand, Higher Input Costs Hurt Valmont (VMI)

Per the Zacks analyst, Valmont faces volume-related headwinds in its coatings business due to weak demand. Higher raw material costs will also hurt its margins.

Kinsale Capital (KNSL) Rides on High Premiums Amid High Costs

Per the Zacks analyst, a strong U.S. excess and surplus lines market footprint, and high retention rates position its premiums well for growth. However, high costs have been weighing on margins.

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Square, Inc. (SQ) : Free Stock Analysis Report
 
Petroleo Brasileiro S.A. Petrobras (PBR) : Free Stock Analysis Report
 
NIKE, Inc. (NKE) : Free Stock Analysis Report
 
Dominion Energy Inc. (D) : Free Stock Analysis Report
 
Boston Scientific Corporation (BSX) : Free Stock Analysis Report
 
Applied Materials, Inc. (AMAT) : Free Stock Analysis Report
 
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