We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights SAP, Abbott Laboratories, Citigroup, Team and Vaso
Read MoreHide Full Article
For Immediate Release
Chicago, IL – July 25, 2024 – 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: SAP SE (SAP - Free Report) , Abbott Laboratories (ABT - Free Report) , Citigroup Inc. (C - Free Report) , Team, Inc. (TISI - Free Report) and Vaso Corp. (VASO - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Top Analyst Reports for SAP, Abbott Labs and Citigroup
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, Abbott Laboratories and Citigroup Inc., as well as two micro-cap stocks Team, Inc. and Vaso Corp. 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.
SAP shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+37.0% vs. +15.0%). The company's second-quarter performance reflects solid momentum in its cloud business, especially rising demand for the Rise with SAP and Grow with SAP solutions. Strength in its business technology platform and the proliferation of generative AI is a plus.
Amid the volatile software landscape, its Business AI offerings saw steady momentum. Going ahead, it plans to invest heavily in 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. Continued weakness in the Software license and support business segment and rising costs, mainly due to the ongoing restructuring program, are likely to hurt its margins.
Shares of Abbott Laboratories have underperformed the Zacks Medical - Products industry over the past year (-7.9% vs. -1.8%). The company is witnessing significant runoff of COVID-19 testing-related sales is hurting Abbott's Diagnostics growth. Tough macro conditions also pose a concern.
Nevertheless, Abbott's pipeline is generating several new growth prospects, which will help sustain the positive momentum and contribute to the strong growth projection in 2024. Alinity, the company's next-generation suite of systems, is a key driver in the core lab diagnostics business. EPD's impressive performance stems from the company's unique business model.
The company is optimistic about its latest progress with biosimilars and expects this to significantly boost EPD sales, beginning 2025. Freestyle Libre CGM device is also on a great trajectory. Within Nutrition, after a period of hiccups, Abbott has finally reestablished itself as the market leader in the infant formula business.
Citigroup shares have outperformed the Zacks Banks - Major Regional industry over the year-to-date period (+25.5% vs. +21.7%). The company's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters. Second-quarter 2024 results reflect higher loan balances and strength in fee income.
The business transformation initiatives, including its consumer business exits and organizational simplification efforts, will help it in the long run. A decent liquidity position makes capital distribution seem sustainable. Increased cross-border payment activity will likely support its financials.
Yet, high funding cost is putting pressure in net interest income (NII). Also escalating expenses will remain a concern in near term. Compared with the industry, unfavorable return on equity reflects that the company is less efficient in using shareholders' funds.
Shares of Team have outperformed the Zacks Building Products - Maintenance Service industry over the year-to-date period (+55.9% vs. +15.7%). This microcap company with market capitalization of $44.64 million saw improvement in 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.
Vaso's shares have underperformed the Zacks Medical - Instruments industry over the past year (-18.3% vs. -0.7%). This microcap company with market capitalization of $42.47 million is witnessing rising operating expenses, increased operating losses, dependency on key agreements, competitive pressures and regulatory challenges pose risks. Effective execution and adaptation to market trends are crucial for sustained growth.
Nevertheless, Vaso's strong cash position and improved year-over-year operating cash flow provide a solid financial foundation, enabling investments in growth and operational efficiency. Despite a 1.6% decline in first-quarter 2024 revenues, consistent revenues from professional sales services ensure stability.
High deferred revenues and a significant IT services backlog signal future income stability. Investments in new programs and IT services align with market trends, particularly in telehealth and remote monitoring. Exclusive representation of GE HealthCare products and a presence in China offer competitive advantages.
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
The Zacks Analyst Blog Highlights SAP, Abbott Laboratories, Citigroup, Team and Vaso
For Immediate Release
Chicago, IL – July 25, 2024 – 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: SAP SE (SAP - Free Report) , Abbott Laboratories (ABT - Free Report) , Citigroup Inc. (C - Free Report) , Team, Inc. (TISI - Free Report) and Vaso Corp. (VASO - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Top Analyst Reports for SAP, Abbott Labs and Citigroup
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, Abbott Laboratories and Citigroup Inc., as well as two micro-cap stocks Team, Inc. and Vaso Corp. 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 shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+37.0% vs. +15.0%). The company's second-quarter performance reflects solid momentum in its cloud business, especially rising demand for the Rise with SAP and Grow with SAP solutions. Strength in its business technology platform and the proliferation of generative AI is a plus.
Amid the volatile software landscape, its Business AI offerings saw steady momentum. Going ahead, it plans to invest heavily in 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. Continued weakness in the Software license and support business segment and rising costs, mainly due to the ongoing restructuring program, are likely to hurt its margins.
(You can read the full research report on SAP here >>>)
Shares of Abbott Laboratories have underperformed the Zacks Medical - Products industry over the past year (-7.9% vs. -1.8%). The company is witnessing significant runoff of COVID-19 testing-related sales is hurting Abbott's Diagnostics growth. Tough macro conditions also pose a concern.
Nevertheless, Abbott's pipeline is generating several new growth prospects, which will help sustain the positive momentum and contribute to the strong growth projection in 2024. Alinity, the company's next-generation suite of systems, is a key driver in the core lab diagnostics business. EPD's impressive performance stems from the company's unique business model.
The company is optimistic about its latest progress with biosimilars and expects this to significantly boost EPD sales, beginning 2025. Freestyle Libre CGM device is also on a great trajectory. Within Nutrition, after a period of hiccups, Abbott has finally reestablished itself as the market leader in the infant formula business.
(You can read the full research report on Abbott Laboratories here >>>)
Citigroup shares have outperformed the Zacks Banks - Major Regional industry over the year-to-date period (+25.5% vs. +21.7%). The company's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters. Second-quarter 2024 results reflect higher loan balances and strength in fee income.
The business transformation initiatives, including its consumer business exits and organizational simplification efforts, will help it in the long run. A decent liquidity position makes capital distribution seem sustainable. Increased cross-border payment activity will likely support its financials.
Yet, high funding cost is putting pressure in net interest income (NII). Also escalating expenses will remain a concern in near term. Compared with the industry, unfavorable return on equity reflects that the company is less efficient in using shareholders' funds.
(You can read the full research report on Citigroup here >>>)
Shares of Team have outperformed the Zacks Building Products - Maintenance Service industry over the year-to-date period (+55.9% vs. +15.7%). This microcap company with market capitalization of $44.64 million saw improvement in 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 >>>)
Vaso's shares have underperformed the Zacks Medical - Instruments industry over the past year (-18.3% vs. -0.7%). This microcap company with market capitalization of $42.47 million is witnessing rising operating expenses, increased operating losses, dependency on key agreements, competitive pressures and regulatory challenges pose risks. Effective execution and adaptation to market trends are crucial for sustained growth.
Nevertheless, Vaso's strong cash position and improved year-over-year operating cash flow provide a solid financial foundation, enabling investments in growth and operational efficiency. Despite a 1.6% decline in first-quarter 2024 revenues, consistent revenues from professional sales services ensure stability.
High deferred revenues and a significant IT services backlog signal future income stability. Investments in new programs and IT services align with market trends, particularly in telehealth and remote monitoring. Exclusive representation of GE HealthCare products and a presence in China offer competitive advantages.
(You can read the full research report on Vaso Corporation here >>>)
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
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.