Top Research Reports for Facebook, Nike & Zoom Video

Friday, February 26, 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 Facebook, Inc. (FB), Nike, Inc. (NKE) and Zoom Video Communications, Inc. (ZM). 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 >>>

Facebook shares have gained +34.2% over the past year against the Zacks Internet – Services industry’s gain of +49.6%. The Zacks analyst believes that Facebook is benefiting from steady user growth across all regions, particularly Asia Pacific. Increased engagement for its products like Instagram, WhatsApp and Messenger is a major growth driver.

Facebook expects year-over-year growth rates in total revenues to remain stable or modestly accelerate on a sequential basis in the first and second quarters of 2021. However, the company expects changes made by Apple in its iOS 14 platform to limit the latter’s ability to track user-activity trends. The company also believes that Apple has become its biggest competitor. Moreover, increasing regulatory headwinds in the EU and other countries is a concern.

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

Nike shares have outperformed the Zacks Shoes and Retail Apparel industry over the past year (+53.1% vs. +50.5%). The company received a boost following the solid second-quarter fiscal 2021 results, with both top and earnings improving year over year. The Zacks analyst believes that results gained from strength in the digital business across all regions. Digital sales for the Nike brand improved double digits across EMEA, Greater China and APLA along with triple-digit growth in North America.

Moreover, it started the holiday season on a strong note with record online sales during the Black Friday week. Management expects sequential growth during the fiscal third quarter. However, it is witnessing lower revenues at the wholesale business and Nike-owned stores. Higher restructuring costs and continued investments in digital capabilities also acted as headwinds.

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

Zoom Video shares have outperformed the Zacks Internet - Software industry in the year to date period (+8.2% vs. +2.6%). The Zacks analyst believes that demand for the company’s cloud-native video-first platform is expected to remain solid owing to the work-from-home and online-learning wave. Easy to deploy, use, manage and scalability makes Zoom’s software popular among its customers. Expanding clientele is expected to drive top-line growth momentum in the near term.

Moreover, the company’s expanding international presence is a key catalyst. Its efforts to eliminate the security and privacy loopholes, as well as new hardware and Zoom From Home solution’s launch, are expected to help in expanding clientele. The company’s strong free cash-flow generating ability is noteworthy.

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

Other noteworthy reports we are featuring today include Micron Technology, Inc. (MU), The Travelers Companies, Inc. (TRV) and McKesson Corporation (MCK).

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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

Expanding User Base, Instagram Strength Aid Facebook (FB)

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

Zoom (ZM) Rides on Work-From-Home & Online Learning Wave

Featured Reports

Plumbing & Security Aids Fortune Brands (FBHS), High Costs Ails

Per the Zacks analyst, Fortune Brands (FBHS) is poised to benefit from product innovation and solid product offerings in the security and plumbing market.

Increase in New Business, High Retention Aid Travelers (TRV)

Per the Zacks analyst, Travelers is set to grow given high retention rate, increase in new business, positive renewal premium change, solid commercial businesses and growing personal line of business.

Rising Loans and Fee Income Boost M&T Bank's (MTB) Top-Line

Per the Zacks analyst, M&T Bank's continues to gain from increasing loans and deposits balance amid the improving economy. Also, diverse fee income sources will bolster its top line growth.

U.S. Pharmaceutical Arm Aids McKesson (MCK), High Costs Ail

Per the Zacks analyst, solid prospects in the core U.S. Pharmaceutical and Specialty Solutions unit, fueled by market growth, continue to aid McKesson.

Telecom Demand Aids Dycom (DY), Lower Customer Spending Hurts

Per the Zacks analyst, Dycom's business primarily benefits from increased demand for network bandwidth and mobile broadband.

Micron (MU) Benefits from Growing Memory-Chip Demand

Per the Zacks Analyst, Micron is growing on solid memory-chip demand from PC manufacturers and data-center operators as the COVID-19 pandemic has boosted the work-and-learn-from-home trend.

No Sales, Promising Pipeline Aids Reata's (RETA) Prospect

Per the Zacks analyst, Reata has two promising late-stage pipeline candidates and is progressing well with their development.

New Upgrades

Ovintiv (OVV) to Gain from Premium Asset Portfolio

The Zacks analyst likes Ovintiv's premium inventory of high-quality, liquids-rich locations with an attractive mix of drilled but uncompleted wells, which can be quickly brought into production.

Acquisitions, Strong Demand Aid Westlake Chemical (WLK)

Per the Zacks analyst, strong demand for polyethylene and polyvinyl chloride resin will drive the company's top line. It should also gain from synergies of Axiall and NAKAN acquisitions.

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

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

New Downgrades

Unfavorable Valuation, Covid-19 Impact Hurts Kratos (KTOS)

Per the Zacks Analyst, Kratos' historical EV/EBVITDA ratio reflects a gloomy picture that might be a cause for investors' concern. Moreover, the pandemic has impacted its tactical drone business.

Campbell Soup (CPB) Appears Troubled by Input Cost Inflation

Per the Zacks analyst, cost inflation hurt Campbell Soup's gross margin. During fiscal first-quarter gross margin was partly impacted by higher net supply-chain costs as a result of cost inflation.

Insperity (NSP) Hurt by Higher Investment Related Expenses

Per the Zacks analyst, Insperity is facing higher expenses as it continues to invest in technology, product and service offerings. Hence, the bottom line is likely to be under pressure.

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Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report
 
The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report
 
NIKE, Inc. (NKE) : Free Stock Analysis Report
 
McKesson Corporation (MCK) : Free Stock Analysis Report
 
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