Top Stock Picks for the Week of September 6, 2021
A Pick in a Strong Industry and One That's Outperforming its Peers...
Roku, Inc. ROKU is the leading TV streaming platform provider in the United States based on hours streamed. Roku reported impressive second-quarter results, which benefited from increased user engagement and ARPU, courtesy of steady advertising revenues. ARPU growth was driven by increased per user engagement, continued investments in channel distribution, content promotions, billing and advertising capabilities. Launch of third-party streaming channels including Peacock, Disney+ and HBO Max aided user growth. Moreover, streaming hours growth is likely to boost TV streaming advertising on Roku’s platform. The company is gaining from robust growth in advertising driven by monetized video ad impressions on increasing popularity of The Roku Channel. Shares of the company have outperformed the industry year to date. Roku’s improved liquidity makes the stock attractive to investors.
Deere & Company DE is the world’s largest producer of agricultural equipment, manufacturing agricultural machinery since 1837 under the iconic John Deere brand with its signature green and yellow color scheme. Deere’s third-quarter fiscal 2021 earnings and sales beat the Zacks Consensus Estimate and increased year over year. The company expects net income for fiscal 2021 to lie between $5.7 billion and $5.9 billion backed by improving conditions in the farm and construction sectors. The ongoing rally in commodity prices will continue to fuel demand for agricultural equipment. Replacement demand triggered by the need to replace old equipment will also continue to support Deere's revenues. The company is likely to benefit from growth in non-residential investment and strong order activity from independent rental companies. Focus on investing in new products equipped with the latest technology and features that will help making farming automated as well as its efforts to expand in precision agriculture will drive growth in the long haul. The firm has seen solid earnings estimate revision activity over the past month, suggesting analysts are becoming a bit more bullish on its prospects in both the short and long term.
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