雅虎香港財經 Top Research Reports for SAP, Cisco & Intuit
Wednesday, September 4, 2024
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 SAP SE (SAP), Cisco Systems, Inc. (CSCO) and Intuit Inc. (INTU), as well as two micro-cap stocks: Team, Inc. (TISI) and Miller Industries, Inc. (MLR). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
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 >>>
SAP’s shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+40.3% vs. +8.5%). The company’s performance is cushioned by robust momentum in its cloud business, especially demand for the "Rise with SAP" and "Grow with SAP" solutions. Strength in its business technology platform and the proliferation of generative AI bodes well.
Amid the dynamic software landscape, its "Business AI" offerings are seeing steady traction. Going ahead, it plans to spend heavily on Business AI capabilities to fuel innovation. Management reiterated its guidance for 2024 cloud revenues along with 2025 long-term targets, including cloud and total revenues.
SAP projects cloud revenues in the range of €17-€17.3 billion for 2024 and revenues of more than €21.5 billion for 2025. Weakness in the Software License and Support business segment and rising costs, mainly due to the ongoing restructuring program, are likely to weigh on SAP’s performance.
(You can read the full research report on SAP here >>>)
Shares of Cisco have narrowly outperformed the Zacks Computer - Networking industry over the year-to-date period (+1.2% vs. +1.1%). The company’s business model has evolved with subscription revenues accounting for more than half of its total revenues. The Splunk acquisition enhances its recurring revenue base.
This buyout significantly expands Cisco’s portfolio of software-based solutions, contributing more than $4 billion in ARR, and makes it one of the largest software companies in the world. The launch of AI-powered Hypershield, which combines security and networking, strengthened Cisco’s security portfolio.
However, it has been suffering from sluggish networking sales, primarily due to lackluster demand from telecommunication and cable services providers, as well as stiff competition. Cisco’s prospects are further challenged in the AI-driven networking space due to stiffening competition, aggravated by Hewlett Packard’s deal to acquire Juniper.
(You can read the full research report on Cisco here >>>)
Intuit’s shares have gained +0.3% over the past year against the Zacks Computer - Software industry’s gain of +8.4%. The company’s fourth quarter of fiscal 2024 results reflected steady revenues from the Online Ecosystem and Desktop business segments.
Strong momentum in Online Services revenues driven by strong performances of Mailchimp, QuickBooks Online Payroll and QuickBooks Online payments solutions and QuickBooks Online Accounting revenues were significant growth boosters. The Credit Karma business is benefiting from strength in Credit Karma Money, credit cards, auto insurance and personal loans.
INTU’s strategy of shifting its business to a cloud-based subscription model will help generate stable revenues over the long run. However, higher costs and expenses due to increased investments in marketing and engineering teams are likely to negatively impact bottom-line results in the near term.
(You can read the full research report on Intuit here >>>)
Shares of Team have outperformed the Zacks Building Products - Maintenance Service industry over the year-to-date period (+112.9% vs. +18.5%). This microcap company with market capitalization of $60.62 million have witnessed improved its gross margin by 120 bps year over year to 24.4% in first-quarter 2024 through strategic cost management.
Team is expanding into high-growth markets like aerospace and renewable energy, targeting mid to high-single-digit revenue growth. The 2024 adjusted EBITDA guidance indicates a 48% mid-point improvement from that reported in 2023. Team offers specialized services across diversified industries, enhancing its competitive edge and mitigating sector-specific risks.
However, high debt levels of $307.2 million and decreasing cash reserves pose financial risks. Revenue declined 1.3% year over year in the first quarter of 2024 due to reduced activity in the IHT segment. Additionally, the company is sensitive to oil and gas market conditions, and intense competition could erode market share.
(You can read the full research report on Team here >>>)
Miller’s shares have outperformed the Zacks Automotive - Original Equipment industry over the year-to-date period (+37.2% vs. -24.8%). This microcap company with market capitalization of $668.10 million has shown strong financial performance with 23.8% YoY revenue growth in the first half of 2024, reaching $721.3 million, driven by increased production and demand.
As the world’s largest manufacturer of towing and recovery equipment, Miller's market leadership and diversified product portfolio enable it to capitalize ona rising global demand, especially as motorization and commercial vehicle use expand.
The $25 million share repurchase program reflects a commitment to enhancing shareholder value, while ongoing innovation, such as the Century 12 Series LCG carrier, strengthens its competitive edge. Expansion into international markets offer additional growth avenues.
However, risks include supply chain disruptions, steel price volatility, declining cash, rising debt, and geopolitical and regulatory challenges that could impact growth and profitability.
(You can read the full research report on Miller here >>>)
Other noteworthy reports we are featuring today include Zoetis Inc. (ZTS), Realty Income Corp. (O) and American Electric Power Co., Inc. (AEP).
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
Solid Momentum in Cloud Business Driving SAP's Performance
Cisco (CSCO) Benefits From Strong Security Products Adoption
Intuit (INTU) Rides on Product Refresh, Higher Subscriptions
Featured Reports
Pet-Care Portfolio Boost Zoetis (ZTS), Disease Outbreaks A Woe
Per the Zacks Analyst, the companion animal product sales are expected to boost Zoetis in the quarters ahead. Potential supply challenges and disease outbreaks could, however, hurt prospects.
Strong Retail Demand Aids Realty Income (O), High Rates Ail
Per the Zacks analyst, a diversified tenant base, accretive buyouts and a healthy balance sheet bode well for Realty Income despite rising e-commerce adoption and macroeconomic choppiness.
Focus on Renewable Expansion Aids American Electric (AEP)
Per the Zacks analyst, investments in transmission projects and renewable expansion is likely to boost American Electric's revenues. Yet, unfavorable financial position remains a concern.
Solid HVAC Demand Aids Johnson Controls (JCI), High Costs Ail
Per the Zacks analyst, Johnson Controls is benefiting from strong demand for HVAC products in commercial and residential markets. However, high operating costs remain a concern for the company.
Aptiv (APTV) Benefits From Hohle Buyout Amid Rising Costs
Per the Zacks analyst, the acquisition of Hohle boosts Aptiv's Signal and Power Solutions segment. Rising expenses are concerning.
Technology, AUM Aid SEI Investments (SEIC) Amid High Costs
Per the Zacks analyst, SEI Investments' diverse offerings, rising AUM, and technological enhancements will aid its financials. However, rising costs and concentrated fee-based revenues are woes.
Northern (NOG) to Gain from Non-Operated Business Model
The Zacks analyst believes that Northern benefits from lower costs and higher margins due to its non-operated business model. However, a drop in oil and gas prices could hurt its valuation.
New Upgrades
Qualys (QLYS) Rides on Product Strength, Marketing Efforts
Per the Zacks analyst, Qualys benefits from expanding product capabilities, which helps it gain customers. Increasing marketing efforts are also an upside.
Robust Diagnostics Sales, Broad Pipeline Aid Veracyte (VCYT)
Per the Zacks Analyst, the success of Veracyte's diagnostic platform in gaining market share is evident from the Decipher and Afirma tests performances. Strategic focus on innovation is encouraging.
ProAssurance (PRA) Rides on Buyouts & Rising Premiums
Per the Zacks analyst, strategic acquisitions are helping ProAssurance enhance its portfolio. Also, new business written is driving its premium revenues.
New Downgrades
Nu Skin (NUS) Revenues Hurt by Volatile Currency Movements
Per the Zacks analyst, Nu Skin remains troubled by unfavorable currency rates. The company's Q2 revenues were hurt by currency headwinds, and are likely to bear 3-4% adverse impact in 2024.
High Rates & Softness in Luxury Housing Market to Hurt RH
The Zacks analyst believes that continued softness in the luxury housing market, high interest rates and aggressive investments to enhance its brand reputation will hurt RH.
JAKKS Pacific (JAKK) Hurt by Dismal North America Sales
Per the Zacks analyst, JAKKS Pacific's performance continues to be hurt by dismal North America sales. Its seasonal and costume divisions continue to face significant challenges.
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
Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report
SAP SE (SAP) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
Realty Income Corporation (O) : Free Stock Analysis Report
Zoetis Inc. (ZTS) : Free Stock Analysis Report
Team, Inc. (TISI) : Free Stock Analysis Report
Miller Industries, Inc. (MLR) : Free Stock Analysis Report
