Top Stock Reports for Nike, CVS Health & American Tower

Monday, May 10, 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 Nike, Inc. (NKE), CVS Health Corp. (CVS), and American Tower Corp. (AMT). 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 Nike have underperformed the Zacks Shoes and Retail Apparel industry over the last three months (-3.9% vs -1.7%). The Zacks analyst believes that the company has been witnessing lower revenues at the wholesale business and NIKE-owned stores due to the pandemic-led disruptions. Apparently, revenues lagged the Zacks Consensus Estimate in third-quarter fiscal 2021. In fact, revenues declined across all the regions, except for Greater China.

Nonetheless, the top and bottom line improved year over year in the third quarter, while earnings beat estimates for the third time. Impressively, digital sales of the Nike brand improved double digits across North America, Greater China, and APLA along with triple-digit growth in EMEA.

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

Shares of CVS Health have outperformed the Zacks Retail - Pharmacies and Drug Stores industry over the last three months (+15.7% vs +11.9%). CVS Health’s first-quarter earnings and revenues surpassed the respective Zacks Consensus Estimate. Revenues across all the three operating segments improved reporting better than the company’s expectations. In fact, the Zacks analyst believes that increased full-year guidance is indicative of this bullish trend to continue through the rest of 2021.

The company noted that consumer-centric digital strategy has become more relevant in the current environment as people are using technology more while staying indoors. In the first quarter, the company has achieved higher levels of engagement across digital assets. However, a weak cough, cold and flu season impacted growth within both Pharmacy Services and Retail/LTC. Also, the repeal of the HIF for 2021 hampered growth for Health Care Benefits.

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

American Tower shares have gained +8.6% over the last three months against the Zacks REIT and Equity Trust – Other industry’s gain of +8.8%. The Zacks analyst believes that the company’s decent first-quarter results were supported by organic tenant billing growth. Going forward, American Tower’s extensive and geographically diversified communication real estate portfolio is well-poised to benefit from increasing capital spending by wireless carriers in 5G deployments and future deployment of additional spectrum.

However, its shares have underperformed the industry over the past three months. Also, the company expects a churn rate in its U.S. & Canada property segment to be elevated for several years, affecting overall organic tenant billing growth.

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

Other noteworthy reports we are featuring today include The Southern Company (SO), American International Group, Inc. (AIG) and Parker-Hannifin Corp. (PH).

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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

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

CVS Health (CVS) Tackles Pandemic Woe with Digital Strategy

Acquisitions to Drive American Tower (AMT) Amid Churn Woes

Featured Reports

Horizon's (HZNP) Marketed Drugs Aid Growth Amid Competition

Per the Zacks analyst, strong performance of the inflammatory and orphan businesses are driving Horizon's growth.

Investments Aid Entergy (ETR), Storm Restoration Costs Woe

Per the Zacks analyst, Entergy's systematic investments are expected to boost its grid upgrades and thereby, customer reliability.

Southern Company (SO) Buoyed by Regulated Customer Growth

The Zacks analyst believes that increase in Southern's regulated business customer base will support its revenue growth but is concerned over timing and cost overrun related to Vogtle project.

Improving Demand to Aid Parker-Hannifin (PH) Amid Cost Woes

Per the Zacks analyst, Parker-Hannifin Corporation (PH) is poised to gain from strengthening demand for products, especially in Diversified Industrial segment.

Higher Traffic, Premier Agent Business Aid Zillow Group (ZG)

Per the Zacks analyst, Zillow Group's growth can be attributed to increasing traffic and strength in its Premier Agent Business.

Hilton (HLT) Banks on Unit Expansion Efforts, RevPAR Dismal

Per the Zacks analyst, Hilton is likely to benefit from its solid development pipeline and hotel conversion opportunities.

AIG Rides on Business Restructuring, Cost Control Efforts

Per the Zacks analyst, numerous divestitures and acquisitions have streamlined AIGs business operations, by focusing on core growth areas. Its cost control efforts aid bottomline.

New Upgrades

Outsourcing, Technology Investments to Aid Jones Lang (JLL)

Per the Zacks Analyst, outsourcing trends, sluggish improving market conditions for Capital Markets and Leasing, technology investments and healthy balance-sheet augur well for Jones Lang LaSalle.

High renewal ratio, Price Rise Aid American Financial (AFG)

Per the Zacks analyst, American Financial is set to grow on solid property & casualty business driven by price rise, better industry fundamentals, a high renewal ratio, and favorable combined ratio.

Buyouts & Solid Balance Sheet to Aid Standard Motor (SMP)

Standard Motor's buyout of particulate matter sensor product line from Stoneridge and healthy balance sheet having no leverage are likely to aid the company's bottom line, per the Zacks Analyst.

New Downgrades

High Leverage & Rising Commodity Costs to Ail Meritor (MTOR)

The Zacks analyst is concerned about Meritor's high debt-to-capitalization ratio of 66%. Moreover, the firm expects soaring steel costs to limit margins in fiscal 2021.

Low Collection Rate and High Costs Affect Air Lease (AL)

The Zacks analyst is worried about the low collection rate (total cash collected from lease rentals and maintenance reserves). High operating expenses represent another headwind.

Low Passenger Revenues & High Debt Hurt Gol Linhas (GOL)

The Zacks analyst is concerned about the second wave of coronavirus, which is causing significant loss of passenger revenues. Additionally, high debt is a headwind.

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Southern Company The (SO) : Free Stock Analysis Report
 
ParkerHannifin Corporation (PH) : Free Stock Analysis Report
 
NIKE, Inc. (NKE) : Free Stock Analysis Report
 
CVS Health Corporation (CVS) : Free Stock Analysis Report
 
American Tower Corporation (AMT) : Free Stock Analysis Report
 
American International Group, Inc. (AIG) : Free Stock Analysis Report
 
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