Buy stocks including Adobe ahead of earnings release | Wilnesh News
First-quarter earnings season is just around the corner, and Bank of America has named a slew of top picks following its latest earnings report. According to LSEG, 14% of S&P 500 companies have reported profits so far, with 79% reporting results above analysts’ expectations. CNBC Pro compiled Bank of America’s research to find its favorite Buy-rated stocks ahead of the company’s earnings release. They include: CoStar Group, Fidelity National Information Services, Cisco, Home Depot and Adobe. It’s time for Cisco to buy shares of the networking equipment maker. Bank of America upgraded the stock to “buy” from “neutral” earlier this week, citing several positive catalysts. In fact, analyst Tal Liani is very bullish on Cisco, saying he has “good prospects for the next few years.” In addition to the launch of new products in the field of network security, growth drivers also include the growth of data network market share. Cisco also recently completed its acquisition of Splunk. “Finally, the Splunk integration should benefit from go-to-market synergies, identifying and targeting 5,000 customers, international growth opportunities and greater channel reach,” Liani wrote. Liani also likes Cisco’s “low expectations and valuation support.” Cisco, which is down 4.4% this year, is scheduled to report earnings in mid-May. Home Depot analyst Robert Ohmes said the home improvement chain is firing on all cylinders. “Productivity and supply chain improvements should help drive margin improvements, partially offsetting the impact of recent investments, to drive future growth and deepen HD’s competitive moat,” he said in a recent note. The bank Also bullish on Home Depot’s acquisition of trade distributor SRS Distribution, announced at the end of March. “We expect this acquisition to accelerate growth and expand HD’s share of the complex specialty wallet,” Ormes wrote. Ormes believes the deal has the potential to propel Home Depot’s specialty strategy ahead of its main rival, Lowe’s. . “A growth company acquired a growth company,” he said of the deal. Home Depot shares are down 3.2% this year. The Atlanta-based company plans to report earnings in mid-May. Analyst Jason Kupferberg recently wrote that shares of fintech and financial products services company Fidelity National Information Services have plenty of room to rise. Bank of America sees upside potential from the company’s investor day on May 7 and first-quarter earnings in late April or early May. “We expect solid revenue growth in the first quarter, with buybacks likely to be modestly accretive to earnings per share,” Kupferberg said. The analyst said the investor day will “reinforce Wall Street’s view on competitive positioning and Product/growth strategy understanding”. Going forward, the bank expects to generate “substantial recurring income” and “cash returns to shareholders.” The stock is up 18% this year, but remains “attractive” at its current price. “FIS is still the first choice,” Kupferberg said. Home Depot “A growth company acquires a growth company…Productivity and supply chain improvements should help drive margin improvements, partially offset by short-term investments to fuel future growth and deepen HD’s competition Moat… We expect the acquisition to accelerate growth and expand HD’s share of the complex specialty wallet, and upgrade it to Buy based on three growth drivers, low expectations and valuation support. …. Favorable setup for years to come… Finally, the Splunk integration should benefit from go-to-market synergies with 5,000 customers,” identified and targeted international growth opportunities and greater channel reach. ” CoStar Group “We rate CSGP a Buy due to its industry dominance, recession resilience and strong balance sheet. CoStar is a diversified commercial real estate (CRE) data, analytics and markets company. It provides critical real estate Data, maintaining an average of 90% renewals and continued pricing power in the market Fidelity National Information Services Inc. “FIS remains a top choice. … For the first quarter, we expect solid revenue growth, with buybacks likely to drive. Comes with modest EPS. …reiterates buy on “new” FIS for its significant recurring spinoff, cash generated to shareholders and attractive valuation. Adobe “continues to view AdAdobe as an AI beneficiary…. Adobe looks well-positioned to continue to gain share across its product suite given its competitive advantages: 1) large Creative Cloud user base 2) 4,900 sales and Marketers’ distribution channels 3) Breadth and depth of digital content and experiential software suites.
