Top Research Reports for Apple, Cisco & Linde

Friday, December 3, 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 Apple Inc. (AAPL), Cisco Systems, Inc. (CSCO), and Linde plc (LIN). 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 Apple have outperformed the S&P 500 over the past year (+34.4% vs. +26%). The Zacks analyst believes that Apple has been benefiting from the continued momentum in the Services segment and robust performances from iPhone, iPad, Mac.

Apple’s Services and Wearables businesses are expected to drive top-line growth in fiscal 2022 and beyond. AAPL’s Services portfolio has emerged as its new cash cow. Apple expects revenues for each product category to grow year-over-year, except for iPad, which is expected to decline on the back of supply shortages. Supply chain constraints due to paucity of silicon and COVID-related manufacturing disruptions remain a headwind.

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

Cisco shares have gained +29.7% in the year to date period against the Zacks Computer Networking industry’s gain of +27.1%. The Zacks analyst is optimistic about dominant market position, innovative prowess, product range, growth initiatives and dividend payouts. Order growth in new markets is another major positive.

Healthy uptake of identity and access, advanced threat and unified threat management security solutions amid high growth in Internet traffic is likely to drive Cisco’s growth in the quarters ahead. The buyout of Acacia Communications also bodes well. Integration risks as well as stiff competition from smaller players remain headwinds, though.

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

Shares of Linde have gained +7.3% in the last six months against the Zacks Oil and Gas – Field Services industry’s loss of -3.5%. The Zacks analyst believes that Linde is gaining on the back of recovering industrial gas demand at a time when industrial production is improving worldwide.

With a wide range of applications for its industrial gases, Linde is making the world more productive by the day. Linde’s process gas, hydrogen, is being utilized for clean fuels, while its high-purity and specialty gases are employed to manufacture electronics. Since the third quarter last year, however, there has been a steady decline in LIN’s contractual sale of gas product backlog.

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

Other noteworthy reports we are featuring today include Capital One Financial Corp. (COF), Exelon Corp. (EXC) and Keurig Dr Pepper Inc. (KDP).

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>>>

Per the Zacks analyst, strength in credit card and online banking businesses, and strategic acquisitions will support Capital One.

Per the Zacks analyst, Exelon’s cost management initiatives will have a positive impact on margins and its planned $27B investments through 2024 will strengthen its operation.

Per the Zacks analyst, Keurig witnesses market share gains from higher household penetration in hot and cold beverages, which is likely to continue.

The Zacks analyst expects AIG’s cost controlling efforts to keep boosting its bottom line. However, the company’s massive debt level remains a concern.

While business expansion efforts through new store openings and digital ramp-up are likely to aid AutoZone, rising operating expenses are denting near-term profits, per the Zacks analyst.

Per the Zacks analyst, YUM! Brands focus on digital initiatives and refranchising efforts bode well. However, high operating costs and low traffic due to social-distancing protocols pose concerns.

The Zacks analyst is impressed with Exact Sciences’ growth in the legacy Screening business during the third quarter led by Cologuard volume growth. Yet, the stiff rivalry remains a concern.

Per the Zacks analyst, strength across Xylem’s industrial, commercial and residential end-markets will lend momentum to the company. The company’s solid backlog level adds to its strength.

Per the Zacks analyst, the Lake City contract will drive sales and profitability in Olin’s Winchester unit. Cost savings through productivity projects should also contribute to its margins.

The Zacks analyst applauds the company’s shareholder-friendly activities. The uptick in used-vehicle sales and favorable pricing are other positives.

Per the Zacks analyst, cost-cutting efforts will alleviate Deutsche Bank’s bottom-line pressure amid low interest rates, which is hindering net interest margin growth.

Per the Zacks analyst, Kennametal’s revenue growth and operational efficiencies are being dampened by a steep rise in operating costs and expenses, which is hurting the company’s bottom line.

Per the Zacks analyst, Magellan’s rising costs continue to strain its margins despite several cost-curbing initiatives. Reduced capital deployment via buybacks and dividends remains a concern.

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Mark Vickery