Tuesday, November 12, 2024
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 Netflix, Inc. (NFLX), Salesforce, Inc. (CRM) and Cisco Systems, Inc. (CSCO), as well as a micro-cap stock, BK Technologies Corp. (BKTI). These research reports have been hand-picked from roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Netflix’s shares have outperformed the Zacks Broadcast Radio and Television industry over the past two years (+169.1% vs. +77.1%). The Zacks analyst believes that the planned launch of an in-house ad tech platform next year signals the company's commitment to maximize its revenue stream, with ad revenues expected to roughly double year-over-year in 2025. A robust, localized and foreign-language content lineup and healthy customer engagement levels have helped.
However, stiff competition in the streaming space from the likes of Apple, Amazon Prime Video and Disney+ remains a headwind.
(You can read the full research report on Netflix here >>>)
Salesforce’s shares have outperformed the Zacks Computer – Software industry over the past year (+58.7% vs. +21.3%). The Zacks analyst believes that the company’s sustained focus on aligning products with customer needs is driving growth. Continued deal wins in the international market are another growth driver. Salesforce’s strategy of continuous expansion of generative AI offerings are also helping it to tap the growing opportunities in the space.
Yet, stiff competition and unfavorable currency fluctuations are concerns. Softening IT spending amid ongoing macroeconomic uncertainties might hurt its growth prospects.
(You can read the full research report on Salesforce here >>>)
Shares of Cisco have outperformed the Zacks Computer - Networking industry over the last six months (+20.4% vs. +19.2%). Per the Zacks analyst, the launch of AI-powered Hypershield, which combines security and networking, has strengthened the company’s security portfolio. Also, its business model has evolved with subscription revenues accounting for more than half of total revenues.
Yet, Cisco has been suffering from sluggish networking sales as well as stiff competition. Its prospects are further challenged in the AI-driven networking space due to stiffening competition aggravated by Hewlett Packard’s deal to acquire Juniper.
(You can read the full research report on Cisco here >>>)
BK Technologies’ shares have outperformed the Zack Wireless Equipment industry over the past year (+119.5% vs. +52.3%). The Zacks analyst believes that the growing demand for BKR 9000 and BKR 5000 radios have supported revenue growth. Also, a large order backlog and focus on innovation, such as the patented InteropONE solution, strengthens BK's market position.
However, reliance on government contracts, supply-chain risks and limited product diversification pose potential challenges.
(You can read the full research report on BK Technologies here >>>)
Other noteworthy reports we are featuring today include Tesla, Inc. (TSLA), Novartis AG (NVS) and TotalEnergies SE (TTE).
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
Salesforce (CRM) Rides on Portfolio Strength and Buyouts
Netflix (NFLX) Rides on Subscriber Growth, Original Content
Cisco (CSCO) Benefits From Strong Security Products Adoption
Featured Reports
Air Travel Demand Aids American Airlines (AAL) Amid Debt Woe
The Zacks analyst is impressed by the rosy air travel demand scenario. However, the company's high debt load is a concern.
Kisqali, Pluvicto Drive Novartis (NVS) Amid Competition
Per the Zacks analyst, drugs like Entresto, Kesimpta, Pluvicto, Kisqali and Leqvio continue to fuel Novartis' growth. However, generic competition and pipeline setbacks remain concerns.
BP to Boost Production with Strategic Upstream Projects
The Zacks analyst believes BP's new projects, including Seagull and Coconut, enhance its production capacity, supporting its growth in global energy supply and strengthening its upstream portfolio.
Expanding LNG & Clean Energy Assets Aid TotalEnergies (TTE)
Per the Zacks analyst TotalEnergies' presence in entire LNG value chain and expansion of clean energy generation through joint venture and acquisition will boost its performance.
Telefonica (TEF) Rides on Robust 5G Coverage Amid Forex Woes
Per the Zacks analyst, Telefonica's extensive 5G footprint across Spain, Germany and Brazil is solidifying its position. However, global macroeconomic uncertainty and forex volatility are concerning.
Strong Organic Growth and Partnerships Aid Affirm Holdings (AFRM)
Per the Zacks analyst, higher card network revenues and growing servicing income are driving Affirm's revenues. Partnerships and product innovations also bode well.
Strategic Initiatives Aid Owens Corning (OC), High Costs Ail
Per the Zacks analyst, Owens Corning benefits from strategic initiatives and structural improvements. However, high costs and challenges in discretionary projects are concerns.
New Upgrades
Tesla (TSLA) to Ride on Trump's Win & Economies of Scale
Despite potential rebate cuts under a Trump presidency, Tesla is well-positioned to thrive without subsidies, thanks to its cost efficiency and unmatched scale, per the Zacks analyst.
Deckers' (DECK) HOKA Brand Likely to Fuel Top Line
Per Zacks analyst, HOKA, Deckers' flagship brand, has seen notable growth with market penetration expanding, especially internationally. DECK expects HOKA sales to rise 24% for fiscal 2025.
NuVasive Synergy, New Launches Aid Globus Medical (GMED)
Globus Medical's expanding Trauma sales following NuVasive's acquisition is a major positive. Per the Zacks analyst, the company's focus on differentiated technology-based innovation is a key driver.
New Downgrades
Aging Infrastructure & Seasonality Ail MDU Resources (MDU)
Per the Zacks analyst, MDU Resources' aging natural gas pipelines and transmission facilities may affect operations. Seasonality of business operations may lower demand and adversely impact its result
Elevated Expenses, Poor Asset Quality Hurt F.N.B. Corp (FNB)
Per the Zacks analyst, deteriorating asset quality because of a tough operating backdrop is a major headwind for F.N.B. Corp. Rising costs and high debt levels are other near-term concerns.
Rising Expenses & Weak Asset Quality to Hurt WaFd (WAFD)
Per the Zacks analyst, mounting non-interest expenses, significant exposure to commercial loans, and deteriorating asset quality will likely hurt WaFd's financials.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>Novartis AG (NVS) : Free Stock Analysis Report
Salesforce Inc. (CRM) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
