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Top Stock Reports for Walmart, Nike & Citigroup

Mark Vickery

Monday, December 2, 2019

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 Walmart Inc. (WMT), NIKE, Inc. (NKE) and Citigroup Inc. (C). 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 >>>

Walmart’s shares have outperformed the Zacks Retail - Supermarkets industry year to date (+27.0% vs. +24.2%). The Zacks analyst believes that Walmart’s top line has been gaining from its focus on enhancing e-commerce and store operations. Further, the company is making efforts to improve its International unit by shifting focus to profitable countries. These factors helped Walmart retain its sturdy earnings surprise record in third-quarter fiscal 2019, wherein U.S. comps rose for the 21st straight time.

However, the company has been witnessing strained margins for a while now, due to costs associated with e-commerce and technological investments; along with a compelling pricing strategy. In fact, investment in Flipkart is expected to continue weighing on Walmart’s bottom line in fiscal 2020.

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

Shares of Nike have gained 54.7% in the past two-year period against the Zacks Shoes and Retail Apparel industry’s rise of 48.7%. The Zacks analyst believes that despite a volatile macroeconomic and geopolitical environment, Nike expects to continue investing in key capabilities to aid digital transformation and deliver robust growth in fiscal 2020 and beyond.

First-quarter fiscal 2020 had already marked the 10th straight quarter of top-line beat for the company, with earnings beat in 29 of the last 30 quarters. But, higher SG&A expenses and tax rate, as well as adverse currency are headwinds. The company expects SG&A expenses to increase high-single digit in second-quarter fiscal 2020.

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

Citigroup’s shares have outperformed the Zacks Banks - Major Regional industry year to date (+45.1% vs. +30.5%). The Zacks analyst believes that its impressive third quarter results reflected revenue strength, along with rising loan and deposit balance. Also, investment banking revenues escalated and reduced volumes and client activity levels were recorded in the quarter. Citigroup’s streamlining efforts, along with strategic investments in core business, bode well for the long term. Also, declining costs base support the bottom-line improvement.

However, pending litigation issues might keep legal expenses elevated. Further, decline in fee income is another concern for the company.

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

Other noteworthy reports we are featuring today include BP p.l.c. (BP), Intel Corporation (INTC) and ResMed Inc. (RMD).

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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  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

Strained Margins, Flipkart Deal Hurt Walmart (WMT) Earnings

Digital Transformation Efforts to Boost NIKE (NKE) Top Line

Expense Control Aids Citigroup (C), Low Fee Income A Woe

Featured Reports

Editas (EDIT) Focuses on Developing Eye Candidate EDIT-101

Per the Zacks analyst, Editas focuses on developing its lead candidate EDIT-101 to treat LCA10, a rare genetic illness that causes blindness.

Long-term PSA & Renewable Assets Aid Pattern Energy (PEGI)

Per the Zacks analyst Pattern Energy's long-term power sales agreement with customers and expanding renewable assets for clean electricity generation will boost its performance.

Solid Backlog, Rising Growth Prospects Aids Teledyne (TDY)

Per the Zacks Analyst, increased contract wins from the Pentagon and other U.S. allies bolsters Teledyne's backlog.

West Nile Delta Project in Egypt to Boost BP's Cash Flow

The Zacks analyst expects the third stage of West Nile Delta Project to fetch significant cash flows to BP's portfolio.

North American Market to Drive LKQ Corp (LKQ) Revenues

Growth in the U.S. used-car vehicle market will buoy LKQ's North American unit.

Capa Acquisition Aids Ingevity (NGVT), Weak Demand Ails

While Ingevity faces headwind from soft industrial demand across Europe and Asia, the Capa caprolactone acquisition will drive its revenues and earnings, per the Zacks analyst.

Universal Forest Products (UFPI) Rides on Product Innovation

Per the Zacks analysts, strategic initiatives to improve production efficiency and solid growth opportunities in the industrial market are benefitting Universal Forest Products.

New Upgrades

Strong Revenue Growth in SaaS Business Aids ResMed (RMD)

The Zacks analyst is bullish about ResMed's recent collaboration deal with Cerner which has boosted its SaaS portfolio.

Intel (INTC) Gains from Investments in Data Centre Business

Per the Zacks analyst, Intel focuses on boosting its data centre business, wherein investments in FPGA and Xeon Scalable as well as the inclusion of Altera and eASIC are likely to aid top-line growth.

FTI Consulting (FCN) Benefits from International Operations

Per the Zacks analyst, FTI Consulting excels as a partner for global clients dealing with international arbitration issues, thus generating continued revenue growth from international operations.

New Downgrades

Weak Railcar Deliveries & High Debt Weigh on Trinity (TRN)

The Zacks analyst is concerned about the softness in railcar deliveries due to sluggish demand. The company's high debt levels further add to its woes.

Catastrophe Loss, Rising Expenses Ail AXIS Capital (AXS)

Per the Zacks analyst, higher losses from catastrophes affect the company's underwriting results.

NETGEAR (NTGR) Plagued by Margin Woes, Intense Price Wars

Per the Zacks analyst, NETGEAR is likely to lose its cost advantage from manufacturing in low-cost countries like China due to various trade restrictions, leading to soft margins and stiff price wars.

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Walmart Inc. (WMT) : Free Stock Analysis Report
ResMed Inc. (RMD) : Free Stock Analysis Report
NIKE, Inc. (NKE) : Free Stock Analysis Report
Intel Corporation (INTC) : Free Stock Analysis Report
Citigroup Inc. (C) : Free Stock Analysis Report
BP p.l.c. (BP) : Free Stock Analysis Report
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