Thursday, March 3, 2022
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 Oracle Corp. (ORCL), Morgan Stanley (MS) and Deere & Co. (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 >>>
Oracle
shares have gained +19.3% over the past year against the Zacks Computer – Software industry’s gain of +22.1%. The Zacks analyst believes that Oracle’s performance is benefiting from the ongoing momentum across its cloud business, driven by the strong uptake of Oracle Cloud Infrastructure services and Autonomous Database offerings. Healthy adoption of cloud-based applications, comprising NetSuite Enterprise Resource Planning (ERP), Fusion ERP and Fusion Human Capital Management (HCM), bodes well.
Solid demand for the Oracle Dedicated Region Cloud@Customer is anticipated to drive the top line. Partnerships with Accenture and Microsoft is helping Oracle win new clientele. The company’s share buybacks and dividend policy are noteworthy. However, higher spending on product enhancements, especially toward the cloud platform, amid increasing competition in the cloud domain is likely to limit margin expansion.
(You can
read the full research report on Oracle here >>>
)
Shares of
Morgan Stanley
have outperformed the Zacks Financial – Investment Bank industry over the past year (+9.0% vs. +1.5%). The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters. The company has been continuously making efforts to focus less on the capital markets-driven revenue sources.
The Zacks analyst believes that the acquisitions of Eaton Vance and E*Trade Financial are a step in this direction. Increased focus on corporate lending will keep supporting financials in the quarters ahead. However, elevated expenses due to investments in franchise will likely hurt profits.
Relatively lower interest rates and uncertainty about the performance of the capital markets make us apprehensive. Yet, the company’s robust capital deployment activities reflect a solid liquidity position, through which it will enhance shareholder value.
(You can
read the full research report on Morgan Stanley here >>>
)
Shares of
Deere
have outperformed the Zacks Manufacturing – Farm Equipment industry over the past year (+11.3% vs. +6.9%). The Zacks analyst believes that ongoing rally in commodity prices will continue to fuel agricultural equipment demand, encouraging farmers to boost spending on new farm equipment. 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 will make farming automated, which will drive Deere’s growth in the long haul. However, higher material and labor costs will likely dent the company’s results.
(You can
read the full research report on Deere here >>>
)
Other noteworthy reports we are featuring today include Micron Technology, Inc. (MU), Twitter, Inc. (TWTR) and Tyson Foods, Inc. (TSN).
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>>>
Today’s Must Read
Oracle (ORCL) Rides on Cloud Suite Adoption & Partnerships
Buyout, Restructuring Aid Morgan Stanley (MS) Amid Low Rates
Deere (DE) Rides on Farm Equipment Demand Amid Higher Costs
Featured Reports
ChemoCentryx’s Tavneos Drives Growth, Lacks Strong Pipeline
Per the Zacks analyst, ChemoCentryx’s sole marketed drug, Tavneos, holds potential and should drive growth. However, the company lacks any other strong candidates in its pipeline.
Investment boost Ameren Corporation (AEE), Weak Solvency Woe
Per the Zacks analyst, Ameren Corporation’s systematic investment in growth projects and infrastructure upgrade tend to boost its long-term growth. Yet, its weak solvency position remains a concern.
Cactus (WHD) Gains on Higher Customer Drilling Activity
The Zacks analyst appreciates Cactus since its bottom line is being aided by increased customer drilling activity. However, the rising cost of field service is hurting the firm.
Fortive (FTV) Benefits From Product Portfolio & Acquisitions
Per the Zacks analyst, Fortive’s performance is gaining from strong demand trends and an increase in orders for software offerings. Synergies from buyout of ServiceChannel and Provation bodes well.
National Vision (EYE) Comps Growth Solid Amid Stiff Rivalry
The Zacks analyst is impressed with National Vision’s comparable store sales growth in the fourth quarter on increased customer transaction.
Micron (MU) Benefits from Growing Memory-Chip Demand
Per the Zacks analyst, Micron is growing on solid memory-chip demand from PC manufacturers and data-center operators as the COVID-19 pandemic has boosted the work-and-learn-from-home trend.
New Features & Security Focus Drives Twitter’s (TWTR) Growth
Twitter adds new features and ramps up its security efforts to lower abuse, which per the Zacks analyst is boosting user growth. Improving advertising revenues is a key catalyst.
New Upgrades
Product Innovations to Aid JAKKS Pacific’s (JAKK) Top Line
Per the Zacks analyst, JAKKS Pacific’s solid international footprint, focus on innovation and collaborations with popular brands and movie franchisees should boost top-line growth.
W.R. Berkley (WRB) is Set to Grow on Solid Insurance Business
Per the Zacks analyst, W.R. Berkley is set to grow on the strength of its Insurance business, growing international business, investment in alternative assets and solid capital position.
Tyson Foods (TSN) Benefits From Burgeoning Retail Demand
Per the Zacks analyst, Tyson Foods is gaining from burgeoning demand in its retail channel. Notably, retail contributed nearly $350 million to overall sales improvement in fiscal first-quarter.
New Downgrades
Weak Solvency Level, Escalating Costs Ail PRA Group (PRAA)
Per the Zacks analyst, its lacks of financial flexibility due to steep borrowings remain a concern. Moreover, escalating expenses continue to weigh down the margins.
Supply Chain Congestions Weigh on Ross Stores (ROST) Margins
Per the Zacks analyst, Ross Stores has been witnessing the effects of the industry-wide supply chain congestion, which led to higher freight costs and distribution expenses, affecting margins in Q4.
Envestnet (ENV) Grapples With Expenses and High Debt
The Zacks analyst believes that rising expenses resulting from increases in website and systems development costs are likely to weigh on Envestnet’s bottom line.
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