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Top Research Reports for Home Depot, Toyota & IBM

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Sheraz Mian
·6-min read
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Tuesday, April 13, 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 The Home Depot (HD), Toyota Motor (TM), and International Business Machines (IBM). 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 The Home Depot have modestly underperformed the Zacks Retail Building Products industry over the past year (+54.8% vs. +62.8%), though they have been standout performers otherwise. The Zacks analyst believes that the company’s interconnected retail strategy and underlying technology infrastructure have helped boost web traffic in fiscal 2020.

During the fourth-quarter fiscal 2020, the company witnessed continued strong demand for home improvement projects. Also, broad-based strength across its business and geographies led to comparable sales growth.

However, the company has been witnessing soft margins trend on higher expenses. Negative product mix and pressures from higher transportation costs have been headwinds. It also provided a lower-than-expected view for fiscal 2021.

(You can read the full research report on The Home Depot here >>>)

Toyota shares have gained +17.2% over the last six months against the Zacks Foreign Automotive industry’s gain of +26.1%. The Zacks analyst believes that partnership with Subaru and Mazda is likely to drive Toyota's electrification plans. Collaboration with Hino, Aurora, Uber and Pony.ai also augur well for the firm.

Meanwhile, the auto giant from Japan has an array of brands including Toyota, Lexus and Scion, which position it for solid prospects. The upward revision of Toyota’s fiscal 2021 view is encouraging. The company now projects 2021 operating income to be ¥2,000 billion, up from the prior estimate of ¥1,300 billion.

The firm’s sharp focus on electric vehicles (EVs) and driverless cars offer ample growth visibility. Toyota targets to achieve 40% of global sales from EVs by 2025 and nearly 70% by 2035.

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

Shares of IBM have gained +1.4% in the past three months against the S&P 500’s gain of +9.4%. The Zacks analyst believes that strong patent portfolio and solid uptake of IBM’s cloud-based solutions, blockchain, security, and digital transformation offerings bode well for the company.

Furthermore, synergies from the Red Hat buyout are strengthening its competitive position in the hybrid cloud market. The company is also poised to gain from spin-off of legacy infrastructure services business as it focuses on its hybrid cloud strategy.

However, intense competition in the cloud computing market from Amazon Web Services and Microsoft Azure remains a major headwind. Additionally, higher current debt levels amid extensive restructuring activities are other concerns.

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

Other noteworthy reports we are featuring today include Merck (MRK), AbbVie (ABBV) and CVS Health (CVS).

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

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 >>

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

Interconnected Retail Strategy Aids Home Depot's (HD) Growth

Toyota (TM) to be Driven by Ambitious Electrification Goals

Solid Adoption of Cloud Solutions Aids IBM Amid High Debt

Featured Reports

Key Drugs Drive Merck's (MRK) Sales Amid Generic Woes

Per the Zacks analyst, Merck drugs like Keytruda, Lynparza and Bridion are driving sales amid generic competition for several drugs and rising competitive pressure on the diabetes franchise.

AbbVie's (ABBV) Pipeline Solid; Skyrizi, Rinvoq Shine

The Zacks analyst says that AbbVie (ABBV) has an impressive late-stage pipeline with several candidates that have blockbuster potential.

CVS Health (CVS) Tackles Pandemic Crisis with Digital Strategy

The Zacks analyst believes CVS Health's highly adaptable consumer centric digital strategy will play a major role in helping the company withstand the pandemic-led challenges on its business.

Sinopec (SNP) Banks on Gas Discoveries in Sichuan Basin

The Zacks analyst agrees that new gas discoveries in Tarim, Sichuan and Bohai Bay basins have brightened Sinopec's production outlook.

Business Restructure, Cost Saving Efforts Aid Barclays (BCS)

The Zacks analyst believes Barclays' business restructuring initiatives and expense-saving efforts will continue to support financials.

Expansions, Omni-Channel Efforts to Aid Simon Property (SPG)

Per the Zacks analyst, efforts to support omnichannel retailing, premium retail assets' addition and solid balance-sheet strength will aid Simon Property sail through retail real estate market blues.

Investments Aid Edison International (EIX), Rising Costs Ail

Per the Zacks analyst, systematic capital investment boosts Edison International's infrastructure and customer reliability.

New Upgrades

Strong Growth Across All Franchisees Is Driving Repligen (RGEN)

Per the Zacks analyst, robust demand across Repligen's three product franchisees is generating significant revenues. In 2020, Repligen has witnessed strong organic revenue growth.

EMCOR (EME) Rides on Robust Construction Activity & Buyouts

Robust construction activity, mainly within the health care, commercial, and transportation markets, along with aggressive acquisitions will help EMCOR to drive profit, per the Zacks analyst.

Robust Digital Media Revenues Benefit J2 Global (JCOM)

Per the Zacks analyst, J2 Global's focus on expanding its digital media business and healthy display business which derives majority of revenues from the healthcare space is driving top-line growth.

New Downgrades

General Motors (GM) to be Hurt by Chip Crunch and High Capex

The global shortage of semiconductor supply, high capex, and R&D costs to launch smart cars are likely to dent General Motors' 2021 margins, which makes the Zacks analyst bearish on the stock.

Twitter (TWTR) Suffers from Stiff Competition for Ad-Dollars

Per the Zacks analyst, intensifying competition for ad dollars from the likes of Facebook and Google doesn't bode well. Lack of revenue diversification is a major concern for Twitter.

Soft Traffic to Weigh on Bed Bath & Beyond's (BBBY) Top-Line

Per the Zacks analyst, pandemic-led dismal store traffic was a drag upon Bed Bath & Beyond's top line in the third quarter. In-store traffic is likely to remain soft in the fourth quarter as well.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Toyota Motor Corporation (TM) : Free Stock Analysis Report
 
International Business Machines Corporation (IBM) : Free Stock Analysis Report
 
The Home Depot, Inc. (HD) : Free Stock Analysis Report
 
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