Thursday, December 15, 2022

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 Adobe Inc. (ADBE), Salesforce, Inc. (CRM) and Lowe's Companies, Inc. (LOW). 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 Adobe have underperformed the Zacks Computer - Software industry over the past year (-40.0% vs. -24.7%). The company’s facing ongoing tensions between Russia and Ukraine remain major headwinds for its Digital Media segment. Also, high acquisition expenses do not bode well for its margin expansion.

However, Adobe is benefiting from strong demand for its creative products. The company’s Creative Cloud, Document Cloud and Adobe Experience Cloud products are driving the top-line growth. Further, rising subscription revenues and solid momentum across the mobile apps are major positives. Additionally, growth in emerging markets and robust online video creation demand remain tailwinds.

Additionally, solid demand for Adobe’s commerce offerings and growing adoption of Acrobat. We remain optimistic about Adobe’s market position, compelling product lines and continued innovation. Considering the aforesaid facts, the Zacks analyst expect fiscal 2022 revenue to grow 11.5% year over year.

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

Shares of Salesforce have underperformed the Zacks Computer - Software industry over the past year (-46.8% vs. -24.7%). The company is facing stiff competition is a concern. Besides, unfavorable currency fluctuations along with increasing investments in international expansions and data centers are an overhang on near-term profitability.

However, Salesforce is benefiting from a robust demand environment as customers are undergoing a major digital transformation. The rapid adoption of its cloud-based solutions is driving demand for its products. Its sustained focus on introducing more aligned products as per customer needs is driving its top-line.

Continued deal wins in the international market is another growth driver. The acquisition of Slack would position the company to be a leader in enterprise team collaboration solution space and better compete with Microsoft’s Teams product. The Zacks analyst expect CRM revenues to grow at a CAGR of 12.5% through fiscal 2023-2025.

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

Lowe's shares have outperformed the Zacks Building Products - Retail industry over the past six months (+23.6% vs. +22.1%). The company remains well-positioned to capitalize on demand for the home improvement market, backed by investments in technology, merchandise category and strength in Pro business.

Lowe’s posted sturdy earnings results for third-quarter fiscal 2022 wherein the top and the bottom line beat the Zacks Consensus Estimate and grew year over year. Results benefited from higher comparable sales (comps) and Pro sales as well as improved DIY sales trends.

The company witnessed a substantial improvement in its adjusted operating margin on disciplined execution and cost management. Management is committed to enhancing the Pro offerings, expanding Lowe’s market share and driving its operating margin. The Zacks analyst expects revenues of $97-98 billion (including the 53rd week) for fiscal 2022.

(You can read the full research report on Lowe’s here >>>)

Other noteworthy reports we are featuring today include Eni S.p.A. (E), UDR, Inc. (UDR) and Las Vegas Sands Corp. (LVS).

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>>>