Top Analyst Reports for Visa, Medtronic & Salesforce

Monday, June 4, 2018

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 Visa (V), Medtronic (MDT) and Salesforce (CRM). 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 >>>

Visa’s shares have outperformed the Zacks Financial Transaction Services industry over the last year (+35.5% vs. +32.9%). The company is witnessing growth in payments volume, cross-border volume and processed transactions as a strong economy and a positive consumer sentiment drives higher spending.

Numerous strategic acquisitions and alliances, technology upgrades and effective marketing have paved the way for its long-term growth and consistent revenue improvement. The Zacks analyst thinks Visa is well poised to gain from the growing electronic payment processing and strong international business. A solid balance sheet ensures effective capital deployment.

The stock has seen the Zacks Consensus Estimate for current-year earnings being revised 2% upward over the last 60 days. Nevertheless, high client incentives might put pressure on revenues.

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

Shares of Medtronic have outperformed the Zacks Medical Products industry in the last three months, gaining +10.1% vs. +6.1%. Medtronic exited the fiscal 2018 on a solid note with better-than-expected fourth quarter performances. All major business groups contributed to solid top-line growth at CER, highlighting sustainability across groups and regions, in addition to displaying successful integration and achievement of synergy targets.

The Zacks analyst thinks the gradually stabilizing CRHF market holds promise. The receipt of FDA approval for the DBS therapy as adjunctive treatment to reduce partial-onset seizures buoys optimism. The company is also focusing on geographical diversification of its businesses. Medtronic is highly positive about its foray into the $1 billion standalone CGM market with its Guardian Connect.

However, escalating costs and expenses continue to weigh on the bottom line. The company’s 2019 guidance remains conservative on apprehension of lackluster CVG and MITG performances.

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

Salesforce’s shares have handily beaten the broader Tech sector over the last year, with the stock up nearly three time the Zacks Technology sector's +15.4% gain. Salesforce reported stellar first-quarter fiscal 2019 results on the back of rapid adoption of the company’s cloud-based solutions.

The Zacks analyst thinks enhancement of customer experience via artificial intelligence related innovations have further aided the growth. Additionally, strategic acquisitions and the resultant synergies are anticipated to prove conducive to growth over the long run.

Furthermore, the company is on track to reach its $20 billion annual revenue mark. Nonetheless, stiff competition and an increase in investments for international expansions and data centers could negatively impact near-term profitability.

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

Other noteworthy reports we are featuring today include VMware (VMW), Dollar General (DG) and Martin Marietta (MLM).

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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

Visa (V) Grows on Acquisitions, Technological Investments

Sturdy CRHF Arm, Growing Neurovascular Unit Aid Medtronic (MDT)

Salesforce (CRM) Gains From Buyouts & Strong Portfolio

Featured Reports

Abercrombie's (ANF) DTC Business Reflects Core Strength

Per the Zacks analyst, Abercrombie's investments in mobile, omni-channel and fulfillment have aided growth of direct-to-consumer business, which contributed 27% to sales in first-quarter fiscal 2018.

Martin Marietta's (MLM) Inorganic Drive Solid, Weak Volumes Ail

Per the Zacks analyst, lower aggregates shipments continue to hurt Martin Marietta's prospects.

Sturdy Comps to Fuel Dollar General (DG), SG&A Costs a Woe

Per the Zacks analyst, Dollar General has long been recording positive comps, which is expected to grow in fiscal 2018.

Acquisitions, Higher Rates Aid Associated Banc-Corp (ASB)

The Zacks analyst believes that Associated Banc-Corp's inorganic growth efforts along with higher interest rates, loan growth and strong credit quality will likely continue to support its bottom line.

Cypress Semiconductor (CY) Rides on Strong Product Portfolio

Per the Zacks analyst, Cypress Semiconductor's strong focus toward innovation and expansion of product portfolio continues to aid its performance across automotive, industrial and consumer markets.

Asset Growth Aids SEI Investments (SEIC), High Costs a Woe

Per the Zacks analyst, continued growth in assets under management, driven by steady inflows, will aid SEI Investments' profits.

VMware (VMW) Drives on Hybrid Cloud & SaaS, License Bookings

Per the Zacks analyst, VMware is benefiting from robust vSAN, NSX and EUC licensed bookings growth.

New Upgrades

AXIS Capital (AXS) Continues to Gain from Higher Premiums

Per the Zacks analyst, improving premiums, driven by premium growth across segments, continue to boost AXIS Capital's top line, thereby resulting in the company's overall growth.

Compressor Unit's Divestment to Assist Westport Fuel (WPRT)

Per the Zacks analyst, divestment of its Italy-based compressor natural gas unit will help Westport Fuel to restructure its product offerings and focus more on its alternative-fuel vehicle components.

NYCDA Buyout Drives Substantial Growth for Strayer (STRA)

The covering analyst stresses that the acquisition of New York Code and Design Academy (NYCDA) enables Strayer to capitalize on the demand for professionals trained to develop web and mobile apps.

New Downgrades

Delay in Northern Pass, Regulations Ails Eversource (ES)

Per the Zacks analyst Eversource Energy's prospects were adversely impacted by the ongoing delay in approval of $1.6 billion Northern Pass transmission project and stringent regulation on emissions.

Republic Services (RSG) Grapples With Pricing Pressure

The Zacks analyst believes that weak landfill pricing due to high cost of landfills and leachate is weighing on Republic Services' margins and earnings.

Gap's (GPS) Namesake Brand Continues to be a Hindrance

Per the Zacks analyst, Gap is witnessing softness at its namesake brand due to operational issues, which are likely to persist in second-quarter fiscal 2018.

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Vmware, Inc. (VMW) : Free Stock Analysis Report
 
Visa Inc. (V) : Free Stock Analysis Report
 
Martin Marietta Materials, Inc. (MLM) : Free Stock Analysis Report
 
Medtronic PLC (MDT) : Free Stock Analysis Report
 
Dollar General Corporation (DG) : Free Stock Analysis Report
 
Salesforce.com Inc (CRM) : Free Stock Analysis Report
 
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