Wednesday, June 26, 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 NIKE, Inc. (NKE), Stryker Corp. (SYK) and The TJX Companies, Inc. (TJX). 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 year-to-date period (-14.1% vs. -9.2%). The company is witnessing persistence of inflationary pressures. Elevated demand creation expenses led to higher SG&A expenses.

Nevertheless, NIKE is benefiting from continued progress on Consumer Direct Acceleration strategy, compelling product innovation and digital leadership. This aided retail sales across Nike Direct business in third-quarter fiscal 2024.

The digital unit benefited from robust consumer trends, including momentum in the NIKE mobile app led by improved traffic and higher member buying frequency. It posted top and bottom-line growth in the quarter. Looking ahead, the company expects strong gross margin execution and disciplined cost management.

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

Stryker’s shares have outperformed the Zacks Medical - Products industry over the past year (+13.1% vs. -2.0%). The company exited first-quarter 2024 on a strong note with better-than-expected earnings and revenues. The company witnessed strong performance across its segments in the United States. Strong International sales also buoy optimism.

The momentum is expected to continue in 2024 on the back of ongoing procedural recovery and a strong order book for capital equipment. Stryker’s prospects in 2024 seem promising on the back of strong customer demand for its existing products as well as new launches. The company’s guidance for earnings and revenues appears encouraging. A solid solvency position is a plus.

However, inflationary pressure and supply-chain challenges continue to plague Stryker. Stiff competition in the MedTech space remains a woe. Contraction in both gross and operating margin is a woe.

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

Shares of TJX have outperformed the Zacks Retail - Discount Stores industry over the past six months (+19.3% vs. +17.7%). The company’s off-price business model, strategic store locations, impressive brands and supply-chain management are working well. TJX has been benefiting from robust growth in its Marmaxx, HomeGoods and International segments, a trend that continued in first-quarter fiscal 2025.

Comparable store sales saw a rise, indicating sustained momentum. The company anticipates a 2-3% rise in comparable store sales for fiscal 2025. With a solid pre-tax margin, the company is poised for steady profitability, supported by improved merchandise margins. Also, management is on track with expansion efforts.

However, the company has been grappling with increased costs for a while now. Rising selling, general and administrative (SG&A) expenses are a concern for the company. Unfavorable foreign currency fluctuations might also act as a deterrent.

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

Other noteworthy reports we are featuring today include Infosys Ltd. (INFY), NXP Semiconductors N.V. (NXPI) and Verisk Analytics, Inc. (VRSK).

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>>>