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Top Research Reports for American Tower, Equinix & Deere

Tuesday, March 31, 2020

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 American Tower (AMT), Equinix (EQIX) and Deere (DE). 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 >>>

American Tower’s shares have outperformed the Zacks REIT and Equity Trust industry over the past six months (+1.2% vs. -18.6). The Zacks analyst believes that American Tower is enhancing its macro-tower portfolio and focusing on innovation to capture the underlying opportunities.

Rise in mobile-data usage and higher investments in 4G as well as 5G technology is spurring demand for its telecom towers. Therefore, this will likely drive the company’s leasing activity and organic tenant billings growth in the upcoming period. Moreover, the company is expanding its international presence, which opens up new areas of growth.

Nevertheless, the company has a substantially-leveraged balance sheet. Such high-debt levels might impede cash-flow growth. Additionally, consolidation trends in the telecom sector pose a cause of worry for the company. Furthermore, stiff competition in the tower industry is another concern.

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

Shares of Equinix have gained +37.5% over the past year against the Zacks REIT and Equity Trust – Retail industry’s fall of -35.9%. The Zacks analyst believes that a global footprint and solid interconnected ecosystems has helped the company deliver its 17th year of consecutive quarterly revenue growth, though rising debt burden might affect its operating results as interest expenses flare up.

The company recently completed the acquisition of Packet, a leader in the bare metal automation space. Moreover, the company announced that it opened its fourth International business Exchange data center in Melbourne, Australia. The company’s fourth-quarter 2019 results reflect healthy top-line growth.

Amid higher demand from cloud users, it remains committed to expand its International Business Exchange platform. However, consolidation in the telecommunications industry might mar demand for co-location space, hurting its growth.

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

Deere’s shares have lost -18% over the past three months against the Zacks Farm Equipment industry’s fall of -20.8%. The Zacks analyst believes that acquisitions, introduction of advanced technologies in its products and efforts to expand in precision agriculture will drive the company’s growth.

Deere has withdrawn fiscal 2020 guidance citing that the impact of the coronavirus pandemic on its results cannot be reasonably estimated at this time. Demand for its products and services and supply chain are likely to be impacted. The company anticipates expedited freight costs to make up for the disruption in the supply, which will dent margins.

Further, temporary closures owing to restrictions imposed by the governments will hinder this year’s performance. Construction & Forestry segment sales will bear the brunt of weak construction activity and the company’s efforts to lower production this fiscal. Nevertheless, growing U.S farm income bodes well for agricultural equipment demand.

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

Other noteworthy reports we are featuring today include NVIDIA (NVDA), Bristol-Myers Squibb (BMY) and NextEra Energy (NEE).

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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>>>

Featured Reports

NVIDIA (NVDA) Banks on Recovery in the Data Center Business

Per the Zacks analyst, NVIDIA is gaining traction from growing adoption of Conversational AI among hyperscale customers, which in turn, drives data center revenues.

Opdivo, Eliquis Fuel Bristol-Myers (BMY) Amid Competition

Per the Zacks analyst, label expansion of blockbuster drug Opdivo should maintain momentum for Bristol-Myers amid stiff competition.

Investment in Renewable and Infrastructure Aid NextEra (NEE)

Per the Zacks analyst, NextEra's investment in the range of $50 to $55B to add clean sources in its electricity generation portfolio.

Investment Aids American Electric (AEP), Rate Dependency Hurts

Per the Zacks Analyst, it plans to invest $26.6 billion in regulated operations to boost earnings. However, dependence on regulatory commissions for rate relief is a headwind.

Square (SQ) Banks on Solid Momentum Across Seller Ecosystem

Per the Zacks analyst, robust products such as Square Terminal, Cash Card, Square Register and Square Capital are strengthening Square's seller ecosystem.

U.S. Market Strength Aids Ford (F) Amid International Woes

Robust demand for SUVs & crossovers in the United States is boosting Ford's sales. However, the Zacks analyst is concerned about declining profits in the Middle East and China amid global slowdown.

ONETractor Initiative to Drive Tractor Supply's (TSCO) Sales

Per the Zacks analyst, Tractor Supply's investments in the ONETractor initiative should aid top line growth in the long run.

New Upgrades

Strong Advanced Surgical Segment Aids Integer Holdings (ITGR)

The Zacks analyst is bullish about Integer Holdings' robust performances within Cardio & Vascular and Neuromodulation product lines. Strong demand across key areas like Structural Heart and Periphera

Acorda's (ACOR) Parkinson's Disease Drug Inbrija Aids Growth

Per the Zacks Analyst, Acorda's Parkinson's disease drug Inbrija has been a steady revenue driver since its launch. Moreover, the restructuring initiative is also cutting costs which is a positive

Growing Vaccine Business on New Buyouts Aid Phirbo (PAHC)

The Zacks analyst looks forward Phibro's recent acquisitions like KoVax and MJ Biologic contributing strongly to the company's Vaccine business growth within Animal Health.

New Downgrades

Decline in Crude Oil Demand and Prices Hurt TOTAL (TOT)

Per the Zacks analyst, TOTAL's profitability and operation are adversely impacted by the ongoing decline in crude oil price and drop in oil demand due to coronavirus pandemic.

Weak Demand, Low Oil Prices to Hurt Caterpillar (CAT)

The Zacks analyst is concerned that Caterpillar's results will bear the brunt of a weak manufacturing sector, low spending in the mining sector, impact of coronavirus outbreak and low oil prices.

High Costs & Tariff Likely to Hurt Michaels' (MIK) Margins

Per the Zacks analyst, headwinds related to high tariffs and elevated expenses are likely to weigh on Michaels performance in fiscal 2020. Also, adverse impacts spurred by COVID-19 remains a concern.

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NVIDIA Corporation (NVDA): Free Stock Analysis Report
NextEra Energy, Inc. (NEE): Free Stock Analysis Report
Equinix, Inc. (EQIX): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report
American Tower Corporation (REIT) (AMT): Free Stock Analysis Report
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