Lowe’s, Madison Square Garden Sports, Nike, Salesforce and Microsoft highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – October 9, 2020 – Zacks Equity Research Shares of Lowe’s Companies, Inc. LOW as the Bull of the Day, Madison Square Garden Sports Corp. MSGS asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on NIKE, Inc. NKE, salesforce.com, inc. CRM and Microsoft Corporation MSFT.

Here is a synopsis of all five stocks:

Bull of the Day:

As the Covid-19 pandemic stretches past its 200th day and Americans remain mostly in their homes as much as possible, there have been many winners and losers in the business world. The losers have been businesses that rely on in-person interactions for a significant portion of their revenues. Travel, leisure and entertainment have all suffered mightily.

Technology and technology services like video conferencing and file sharing companies that allow people to work at home more efficiently have been the obvious winners.

There have also been winners in lower-tech industries that suddenly find their goods and services in increased demand – and customers who’s lack of recent spending on recreational pursuits has left them with additional cash in their budgets.

Have you been to a home improvement store lately? With the exception of physical formats that have been tweaked to promote social distancing, you’ll probably find that it looks pretty much like business as usual.

For a huge retailer like Lowe’s Companies, a quick look at recent financials confirms that not only is it “business as usual,” in may respects, it’s better than usual. Suddenly consumers who have been confined to their homes have been embarking on a wide variety of home improvement projects.

The more time you spend in your home, the more likely you are to take on those nagging minor repairs that have been on your “to-do” list forever, as well as tackling bigger projects like painting and landscaping. Contractors have their schedules filled months into the future – and they shop at home improvement stores too – for plumbing, electrical, carpentry and concrete supplies.

With limited options for dining out, grills and other outdoor cooking equipment have been flying out of stores, along with larger appliances like refrigerators, stoves, washers and dryers. Though unemployment remains stubbornly above recent averages, most Americans do remain employed. With almost no money spent on things like airline tickets and restaurant meals, many are finding that they have extra cash to spend on improving their environments.

Low interest rates have kept the housing markets extraordinarily healthy, and increased spending on home improvement projects tends to accompany residential real estate transactions.

The Share Price

One possible knock on Lowe’s right now is that the shares have already seen remarkable appreciation this year. During the market panic in March, those shares traded as low as $60 – an incredible bargain!

Even at recent levels near $170/share however, Lowe’s remains quite reasonably valued at 20X forward 12-month earnings estimates. For comparison purposes, competitor Home Depot trades at 25X forward earnings.

13 recent upward earnings estimate revisions earn Lowe’s

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TikTok reaches deal with Oracle, rejects Microsoft as White House deadline looms

TikTok has reached an agreement to partner with software giant Oracle, a landmark deal that could redefine how the U.S. and China square off over the reach of their homegrown technology companies.



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The deal, which was confirmed Sunday by a source with direct knowledge, comes after the Trump administration pressured TikTok to sell its U.S. business over concerns about the threat to national security. The administration alleged that the company’s ties to China through its parent company, ByteDance, meant it would have to hand over data about Americans if asked by China’s government. TikTok has denied that it would hand over data, which it stressed is stored outside China.

The source would not detail which parts of the technology were being taken over by Oracle, which did not immediately respond to a request for comment Sunday. Microsoft had been considered a front-runner to buy TikTok US until this weekend. Microsoft said earlier that ByteDance had alerted the company that it was passing on its proposal.

Treasury Secretary Steven Mnuchin said in an interview with CNBC on Monday morning that the White House had received a proposal from TikTok for an Oracle partnership.

ByteDance and Oracle still face several hurdles in completing a deal. First, they will need to win approval from the U.S. Committee on Foreign Investment in the United States, or CFIUS, an interagency group that is tasked with overseeing foreign investments in the U.S. A source familiar with the negotiations said both parties believed their deal was structured to satisfy all of the committee’s national security concerns. Even then, the deal still remains vulnerable to the larger geopolitical tensions between Washington and Beijing, and both governments could move to scuttle a deal if they deemed it politically advantageous.

TikTok spokesperson Hilary McQuaide declined to comment, saying the company would not comment “on rumors or speculation.”

The short-form video app burst into popular culture in the past few years, becoming one of the few recent social media upstarts to offer a credible rival to U.S. giants like Facebook and Snapchat. The app, which gives users the ability to create short videos matched to sound or music, has created its own generation of celebrities and countless dance trends.

TikTok head of U.S. operations says they do not pose national security threat

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But its ties to China emerged in the past year as a quiet point of contention in Washington. In November, TikTok was mentioned as a national security threat, and the U.S. government opened an investigation. Since then, Secretary of State Mike Pompeo has said the U.S. was “looking at” banning the app, and President Donald Trump has threatened to do so several times.

“There’s a bit of a reciprocity process going on here, since China doesn’t allow U.S. tech companies like Facebook and Google,” said Paul Triolo, head of global technology policy at the Eurasia Group. “All of these actions are part of an effort by China hawks

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