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 Toyota Motor, IBM, Stryker and Fossil Group
Read MoreHide Full Article
For Immediate Releases
Chicago, IL – August 28, 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: Toyota Motor Corp. (TM - Free Report) , IBM Corp. (IBM - Free Report) and Stryker Corp. (SYK - Free Report) and Fossil Group, Inc. (FOSL - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Top Stock Reports for Toyota, IBM and Stryker
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 Corp., IBM Corp. and Stryker Corp., as well a micro-cap stock Fossil Group, Inc. 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.
Toyota Motor shares have outperformed the Zacks Automotive - Foreign industry over the past year (+8.0% vs. -9.1%). The company’s robust lineup of trucks and sport utility vehicles is set to fuel sales. To capitalize on the global shift to environment-friendly vehicles, the auto giant is deepening its focus on manufacturing hybrid, electric and hydrogen fuel-cell vehicles, which will bolster the company’s product competitiveness.
It aims to expand global sales of BEVs to 1.5 million units in 2026 and 3.5 million units a year by 2030. Toyota’s commitment to maximizing shareholders’ value via dividends and buybacks is also praiseworthy.
However, labor cost inflation is expected to continue to weigh on margins. Rising debt levels, along with high R&D expenses and capex, might pose challenges. Also, Toyota expects sales in Japan to decrease, given the lower shipments of Daihatsu. Thus, the stock warrants a cautious stance now.
Shares of IBM have outperformed the Zacks Computer - Integrated Systems industry over the past year (+41.0% vs. +32.2%). The company is poised to benefit from strong demand for hybrid cloud and AI, driving growth in Software and Consulting. Its growth is expected to be driven primarily by analytics, cloud computing, and security in the long haul.
A combination of a better business mix, improving operating leverage through productivity gains and increased investment in growth opportunities will likely drive profitability. The infrastructure segment is benefiting from broad-based demand for hybrid and distributed infrastructure, especially IBM Z. Improved cybersecurity operations will likely bring long-term benefits.
However, net sales in the Consulting segment are impacted by a pullback in discretionary spending. Although IBM generates significant cash flow, a high debt level can jeopardize its ability to sustain dividend payout. Fierce competition remains a concern.
Stryker shares have outperformed the Zacks Medical - Products industry over the past year (+28.6% vs. +15.8%). The company exited second-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.
Shares of Fossil’s have outperformed the Zacks Retail - Apparel and Shoes industry over the past six months (+8.6% vs. -0.1%). This microcap company with market capitalization of $62.17 million have seen gross margin expanded by 340 bps for the 26 weeks ended June 29, 2024, driven by SKU rationalization, pricing adjustments and exiting the lower-margin smartwatch category under the TAG Plan.
Further margin expansion is anticipated in the second half of 2024. The company also reduced SG&A expenses by 19.1%, narrowing the adjusted operating loss by 32% year over year, and is on track to achieve $100 million in annualized benefits. Fossil's liquidity improved to $156 million, aided by a $57 million tax refund and a 38% reduction in inventory.
Strategic exits from the smartwatch category and store closures have optimized operations, contributing to gross margin gains. Despite these positives, net sales declined 20% due to strategic shifts, with a $100 million negative impact expected for the full year. Pressure on licensed watch brands and high debt levels present ongoing challenges.
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: Bigstock
The Zacks Analyst Blog Toyota Motor, IBM, Stryker and Fossil Group
For Immediate Releases
Chicago, IL – August 28, 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: Toyota Motor Corp. (TM - Free Report) , IBM Corp. (IBM - Free Report) and Stryker Corp. (SYK - Free Report) and Fossil Group, Inc. (FOSL - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Top Stock Reports for Toyota, IBM and Stryker
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 Corp., IBM Corp. and Stryker Corp., as well a micro-cap stock Fossil Group, Inc. 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 >>>
Toyota Motor shares have outperformed the Zacks Automotive - Foreign industry over the past year (+8.0% vs. -9.1%). The company’s robust lineup of trucks and sport utility vehicles is set to fuel sales. To capitalize on the global shift to environment-friendly vehicles, the auto giant is deepening its focus on manufacturing hybrid, electric and hydrogen fuel-cell vehicles, which will bolster the company’s product competitiveness.
It aims to expand global sales of BEVs to 1.5 million units in 2026 and 3.5 million units a year by 2030. Toyota’s commitment to maximizing shareholders’ value via dividends and buybacks is also praiseworthy.
However, labor cost inflation is expected to continue to weigh on margins. Rising debt levels, along with high R&D expenses and capex, might pose challenges. Also, Toyota expects sales in Japan to decrease, given the lower shipments of Daihatsu. Thus, the stock warrants a cautious stance now.
(You can read the full research report on Toyota Motor here >>>)
Shares of IBM have outperformed the Zacks Computer - Integrated Systems industry over the past year (+41.0% vs. +32.2%). The company is poised to benefit from strong demand for hybrid cloud and AI, driving growth in Software and Consulting. Its growth is expected to be driven primarily by analytics, cloud computing, and security in the long haul.
A combination of a better business mix, improving operating leverage through productivity gains and increased investment in growth opportunities will likely drive profitability. The infrastructure segment is benefiting from broad-based demand for hybrid and distributed infrastructure, especially IBM Z. Improved cybersecurity operations will likely bring long-term benefits.
However, net sales in the Consulting segment are impacted by a pullback in discretionary spending. Although IBM generates significant cash flow, a high debt level can jeopardize its ability to sustain dividend payout. Fierce competition remains a concern.
(You can read the full research report on IBM here >>>)
Stryker shares have outperformed the Zacks Medical - Products industry over the past year (+28.6% vs. +15.8%). The company exited second-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 Fossil’s have outperformed the Zacks Retail - Apparel and Shoes industry over the past six months (+8.6% vs. -0.1%). This microcap company with market capitalization of $62.17 million have seen gross margin expanded by 340 bps for the 26 weeks ended June 29, 2024, driven by SKU rationalization, pricing adjustments and exiting the lower-margin smartwatch category under the TAG Plan.
Further margin expansion is anticipated in the second half of 2024. The company also reduced SG&A expenses by 19.1%, narrowing the adjusted operating loss by 32% year over year, and is on track to achieve $100 million in annualized benefits. Fossil's liquidity improved to $156 million, aided by a $57 million tax refund and a 38% reduction in inventory.
Strategic exits from the smartwatch category and store closures have optimized operations, contributing to gross margin gains. Despite these positives, net sales declined 20% due to strategic shifts, with a $100 million negative impact expected for the full year. Pressure on licensed watch brands and high debt levels present ongoing challenges.
(You can read the full research report on Fossil 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.