Top Analyst Reports for Costco, Salesforce & Thermo Fisher Scientific
Wednesday, June 14, 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 Costco Wholesale Corporation (COST), Salesforce, Inc. (CRM) and Thermo Fisher Scientific Inc. (TMO). 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 >>>
Costco shares have outperformed the Zacks Retail - Discount Stores industry over the past year (+15.6% vs. +10.8%). The company being a consumer defensive stock has been surviving the market turmoil pretty well. The discount retailer’s key strengths are strategic investments, a customer-centric approach, merchandise initiatives, and an emphasis on membership growth.
These factors have been helping it register decent sales and earnings numbers. The Zacks analyst expects the company to register a 6% adjusted earnings per share improvement in fiscal 2023 on 6.2% revenue growth. This outlook reflects Costco’s ability to navigate the challenging operating environment, generate solid sales, and register high membership renewal rates.
A favorable product mix, steady store traffic, pricing power and strong liquidity position should help Costco keep outperforming. While trading at a premium to its peers, its long-term growth prospects should help the stock see a solid upside.
(You can read the full research report on Costco here >>>)
Shares of Salesforce have outperformed the Zacks Computer - Software industry over the past six months (+60.2% vs. +35.5%). The company is benefiting from a robust demand environment as customers are undergoing a major digital transformation. The rapid adoption of its cloud-based solutions is driving demand for its products.
Its sustained focus on introducing more aligned products as per customer needs is driving its top-line. Continued deal wins in the international market is another growth driver. The acquisition of Slack would position the company to be a leader in enterprise team collaboration solution space and better compete with Microsoft’s Teams product.
However, stiff competition and unfavorable currency fluctuations are concerns. Besides, challenging macroeconomic environment might hurt its growth prospects in the near-term.
(You can read the full research report on Salesforce here >>>)
Shares of Thermo Fisher Scientific have gained +2.4% over the past year against the Zacks Medical - Instruments industry’s gain of +14.3%. Company’s robust year-over-year revenue growth in the Analytical Instruments and the Laboratory Products and Biopharma Services segments appears promising.
During the first quarter, Thermo Fisher launched a range of high-impact, advanced new products, including the Thermo Scientific iCAP RQ Plus ICP-MS Analyzer. The company continued to strengthen its unique customer-value proposition by advancing the strategic partnership with the University of California, San Francisco (UCSF).
Yet, the year-over-year decline in revenues in the Life Science Solutions and Specialty Diagnostics segment is disappointing. The contraction of margins does not bode well either.
(You can read the full research report on Thermo Fisher Scientific here >>>)
Other noteworthy reports we are featuring today include Morgan Stanley (MS), Medtronic plc (MDT) and BP p.l.c. (BP).
Director of Research
Sheraz Mian
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
Decent Comparable Sales Run to Fuel Costco's (COST) Top Line
Digital Transformation and Acquisitions Aid Salesforce (CRM)
Thermo Fisher's (TMO) PPD Business Grows Amid Stiff Rivalry
Featured Reports
Restructuring Efforts Aid Morgan Stanley (MS) Amid Cost Woes
Per the Zacks analyst, Morgan Stanley's focus on becoming less dependent on capital-markets-driven revenue sources will aid the bottom line. Higher costs due to investments in franchise remain a woe.
Medtronic (MDT) Gains in Market Share, MedSurg Growth Robust
The Zacks analyst is impressed that despite the macro-economic issues, Medtronic is reporting market share gains across its core businesses lines. MedSurg global expansion remains strong.
BP Likely to Benefit From Lightsource BP JV Acquisition
The acquisition will enable BP to increase its access to renewable power generation & simplify the decision-making processes of projects. However, rising exploration expenses concern the Zacks analyst
Cadence (CDNS) Benefits from Diversified Product Portfolio
Per the Zacks analyst, Cadence's performance is gaining from solid demand for the company's diversified product portfolio. Supply chain woes and stiff competition remain concerns.
Exploration Progress, Debt Reduction to Aid Freeport (FCX)
Per the Zacks analyst, Freeport will gain from its progress in exploration activities to expand production capacity and efforts to deleverage balance sheet amid headwind from higher costs.
Aflac (AFL) Banks on Growing U.S. Operations & Product Suite
The Zacks analyst believes that Aflac's significant U.S. market share will drive sales growth, aided by a solid product suite. However, constraints in the Japan business are a concern.
Tepezza Sales To Boost Horizon (HZNP), The FTC Lawsuit a Woe
Per the Zacks Analyst, Horizon (HZNP) is expected to witness steady growth in its revenue, owing to increasing Tepezza sales. However, the FTC lawsuit if successful, will severely impact the stock.
New Upgrades
Ford (F) Rides on Solid Cash Reserves and EV Offerings
The Zacks analyst applauds Ford for its $46 billion liquidity strength and powerful EV lineup, featuring Mustang Mach-E, E-Transit, and F-150 Lightning, which is poised to boost sales.
EMCOR (EME) Banks on Solid US Construction Business & Buyout
Per the Zacks analyst, EMCOR's strength in the U.S. Mechanical and Electrical Construction segments as well as recent buyouts bode well.
Acquisitions, Diverse Customer Base Aid NRG Energy (NRG)
Per the Zacks analyst NRG Energy's expansion through organic & inorganic initiative is likely to boost its results. Its diverse customer base & retention of customers increases earnings predictability
New Downgrades
Rising Rates, Seasonality of Business Ail MDU Resources (MDU)
Per the Zacks analyst, MDU Resources' margins can be impacted by rising interest rates. Seasonality of business operations may significantly reduce demand and adversely impact its overall performance.
Werner Enterprises (WERN) Reels Under High Expenses
The Zacks analyst is worried about the elevated operating costs. Weakness in the freight market is another headwind.
Elevated Expenses, Poor Asset Quality Hurt F.N.B. Corp (FNB)
Per the Zacks analyst, elevated expenses because of F.N.B. Corp's inorganic growth efforts and investments in franchise will hurt the bottom line. Also, weak asset quality is a major headwind.
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Morgan Stanley (MS) : Free Stock Analysis Report
BP p.l.c. (BP) : Free Stock Analysis Report
Salesforce Inc. (CRM) : Free Stock Analysis Report
Medtronic PLC (MDT) : Free Stock Analysis Report
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
