Friday, November 3, 2023

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 ServiceNow, Inc. (NOW), Caterpillar Inc. (CAT) and Starbucks Corporation (SBUX). 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 ServiceNow have outperformed the Zacks Computers - IT Services industry over the year-to-date period (+55.5% vs. +18.4%). The company has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation. It had 1789 total customers with more than $1 million in annual contract value at the end of the third quarter.

ServiceNow has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation. Security and risk had a terrific quarter with ten deals of more than $1 million. Employee workflows had a stellar quarter, with seven deals over $1 million and one deal over $10 million.

It is benefiting from strong demand for its generative AI-powered solutions with the launch of Vancouver. Nevertheless, ServiceNow is suffering from high inflation, stiff competition, and challenging macro-economic environment.

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

Caterpillar shares have outperformed the Zacks Manufacturing - Construction and Mining industry over the year-to-date period (+3.4% vs. +1.6%). The company’s revenues and earnings have grown year over year for eleven straight quarters thanks to its cost-saving actions, strong end-market demand and pricing actions, which offset the impact of the supply-chain snarls and cost pressures.

The Construction Industries segment is expected to benefit from the rising construction activities in the United States and other parts of the world. Backed by demand for commodities fueled by the energy-transition trend, a thriving mining sector will aid the Resource Industries segment.

The Energy & Transportation segment remains well-poised for growth, backed by strong demand across all applications. Its dividend yield and payout ratio are higher than its peers. A strong liquidity position, investments in expanding services and digital initiatives will help Caterpillar deliver outsized returns.

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

Shares of Starbucks have outperformed the Zacks Retail - Restaurants industry over the year-to-date period (+5.0% vs. +3.7%). The company’s uptrend is attributable to robust North America and International sales accompanied by sales leverage initiatives, robust new store growth and new equipment installments and enhancements.

Additionally, digital and product innovation, and supply-chain modernization added to the growth momentum. Also, the opening of China Coffee Innovation Park in September 2023 sparked the company’s business prospects in China. Earnings estimates for fiscal 2024 have increased in the past 30 days. However, high costs and economic risks are concerning.

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

Other noteworthy reports we are featuring today include Vale S.A. (VALE), Arthur J. Gallagher & Co. (AJG) and PG&E Corporation (PCG).

Director of Research

Sheraz Mian

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>>>