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The Zacks Analyst Blog Highlights: Toyota Motor, NIKE, Honeywell, Advanced Micro Devices and Anthem

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For Immediate Release

Chicago, IL – September 15, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Toyota Motor Corporation (TM - Free Report) , NIKE, Inc. (NKE - Free Report) , Honeywell International Inc. (HON - Free Report) , Advanced Micro Devices, Inc. (AMD - Free Report) and Anthem, Inc. ,

Here are highlights from Tuesday’s Analyst Blog:

Top Stock Results for Toyota, Nike and Honeywell

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 Toyota Motor, Nike and Honeywell International. 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 >>>

Toyota shares have modestly underperformed the Zacks Foreign Automotive industry in the year to date period (-6.6% vs. -5.8%), reflecting this large global automaker's cyclcial exposure. The Zacks analyst believes that its expanding portfolio of product lines is driving Toyota’s prospects.

With the EV trends getting hotter with each passing day, the Japanese auto giant is ramping up efforts to develop green vehicles. It aims to achieve half of its global sales from EVs by 2025. Partnership with Subaru and Mazda are likely to drive Toyota's electrification plans. The firm is also working on hydrogen fuel stations in collaboration with various partners.

However, Toyota expects consolidated vehicle sales of 7.2 million units, indicating a decline from roughly 9 million units recorded in fiscal 2020 amid the coronavirus pandemic crisis. High R&D costs on advanced technologies for the development of EVs and driverless cars are also likely to dent near-term margins. Its high debt levels also remain a concern. As such, the stock warrants a cautious stance.

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

Nike shares have outperformed the broader market in the year-to-date period (+17.2% vs. +3.8% for the S&P 500 Index), with the stock really coming into its own recent days as the broader market has lost some of its mojo. The Zacks analyst credits the company's strong digital performance, which demonstrates the strength of its brands and investments to improve digital consumer experiences.

While store closures across North America, EMEA and APLA impacted results in the June-quarter report, the company benefited from robust double-digit digital sales across all regions. It will be interesting to see if these online sales trends will continue in the coming quarterly report that comes out after the market's close on September 22nd. 

Moreover, the company benefited from Greater China returning to currency-neutral growth in the fiscal fourth quarter as stores in the region resumed operations. Nonetheless, the company reported lower than expected top and bottom line in the fiscal fourth quarter on soft revenues and gross margin due to coronavirus-related impacts.

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

Honeywell shares have gained +1% over the past year against the Zacks Diversified Operations industry’s fall of -0.2%. The Zacks analyst believes that strength in defense and space businesses as well as solid demand for warehouse automation products are likely to boost Honeywell’s revenues in the near term.

Solid demand for personal protective equipment and medical sensors along with a strong backlog conversion rate are likely to act as tailwinds. Increased commercial and operational excellence initiatives are likely to improve its near-term profitability. It is committed to rewarding shareholders handsomely.

The company believes that the coronavirus outbreak-led market downturn and a volatile oil market will adversely impact its near-term results. Given its extensive geographic presence, its business is subject to political, economic and geopolitical issues. Rise in debt levels can increase its financial obligations.

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

Other noteworthy reports we are featuring today include Advanced Micro Devices and Anthem.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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