Tuesday, February 8, 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 Microsoft Corp.
MSFT
, Amazon.com, Inc.
AMZN
, and Tesla, Inc.
TSLA
. 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 >>>
Shares of
Microsoft
have outperformed the S&P 500 over the past year (+24.5% vs. +16.3%). The Zacks analyst believes that Microsoft has been benefiting from strength in its Azure cloud platform amid accelerated global digital transformation. Continuation of remote work and mainstream adoption of hybrid/flexible work model has been boosting Teams’ user growth.
Recovery in advertising and job market has been supporting LinkedIn and Search revenues. Solid uptake of new Xbox consoles is aiding the gaming segment performance. Microsoft has also been witnessing growth in user base of its different applications including Microsoft 365 suite, Dynamics and Power Platform. Stiff competition in the cloud space is likely to dent margins, though.
(You can
read the full research report on Microsoft here >>>
)
Amazon
shares have lost -11.7% in the past six months against the S&P 500’s fall of -4.3%, however, things seem to improving for it. The Zacks analyst believes that Amazon continues to benefit from its Prime program, delivery and logistic system in the e-commerce space. A dominant position in cloud market is another positive.
Strengthening AWS services portfolio and its growing adoption rate has also been contributing well. A robust smart home products portfolio has been boosting it revenues. Amazon’s strong global presence and solid momentum among the small and medium businesses remain positives. Growing capabilities in grocery, pharmacy, Amazon Care, Kuiper and Zoox remain other tailwinds.
(You can
read the full research report on Amazon here >>>
)
Shares of
Tesla
have gained +27.2% in the last six months against the Zacks Domestic Automotive industry’s gain of +11.6%. The Zacks analyst believes that robust demand for Models 3 and Y has been buoying Tesla’s revenues.
Despite the global chip crunch, Tesla’s vehicle deliveries jumped 90% in 2021. Tesla’s ambitious production plan in China bode well as the country has the biggest EV market. Tesla’s energy and storage revenues have also been growing on the back of strong performances of Megapack and Powerwall products.
(You can
read the full research report on Tesla here >>>
)
Other noteworthy reports we are featuring today include ConocoPhillips
COP
, Starbucks Corp.
SBUX
and Zoetis Inc.
ZTS
.
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
Adoption of Cloud & Office 365 Strength Aid Microsoft (MSFT)
Prime Momentum & Growing AWS Adoption Benefit Amazon (AMZN)
Rising Deliveries & Shanghai Gigafactory to Buoy Tesla (TSLA)
Featured Reports
ConocoPhillips (COP) to Gain From Delaware Acreage Position
Per the Zacks analyst, ConocoPhillips is poised to gain from its prolific Delaware Basin position.
Store Growth & Robust Comps Likely to Aid Starbucks (SBUX)
Per the Zacks analyst, Starbucks’ rapid unit growth, digital offerings, and robust comps growth bode well. The company anticipates global comparable sales to reach high-single digits in fiscal 2022.
Dermatology, Parasiticides Fuel Zoetis (ZTS), Livestock Weak
Per the Zacks analyst, Zoetis companion animal business driven by Apoquel and Simparica maintains growth amid challenges for livestock portfolio.
Digitization Aids ICICI Bank (IBN) Fee Income, Costs a Woe
Per the Zacks analyst, rise in digitization and internet banking amid the pandemic will aid ICICI Bank’s fee income. Due to such investments in technology, costs will increase, thus hurting profits.
Strong Delivery Business Backs UBER Amid Mobility Weakness
The Zacks analyst is encouraged by the year-over-year growth in UBER’s top line owing to strong Delivery revenues.
Cigna (CI) Benefits from Improving Top Line, Costs High
Per the Zacks analyst, strategic buyouts have enhanced the company’s capabilities, which in turn have led to top-line growth. However, high costs continue to weigh on margins.
Order Growth Aids General Dynamics (GD) Amid COVID Woes
Per the Zacks analyst, solid order flow for its products bolsters General Dynamics’ revenue growth prospects.
New Upgrades
Ralph Lauren’s (RL) Digital Business Investments Aid Sales
Per the Zacks analyst, Ralph Lauren is witnessing strong business momentum owing to investments in digital and omnichannel capabilities.
SM Energy (SM) Banks on the Oil-Rich Midland Basin
The Zacks analyst believes that SM Energy’s production outlook is bright since it is the leading upstream operator in the oil-rich and high-margin Midland basin.
Trinity Industries (TRN) Boosted by Dividends & Buybacks
The Zacks analyst is impressed with the company’s efforts to reward its shareholders. Improvement in demand for railcars is an added positive.
New Downgrades
Data Security Threats, Stiff Competition Ail Ecolab (ECL)
The Zacks analyst is worried about Ecolab’s operation in a tough competitive space. Data security breaches posing a risk of exposing sensitive data is an added issue.
Stiff Competition, Store Closures Are Woes for Vornado (VNO)
Per the Zacks analyst, intense competition will adversely affect Vornado Realty’s long-term profitability. Moreover, retail store closures and tenant bankruptcies act as other major headwinds.
Soft Visitation Likely to Hurt Dave & Buster’s (PLAY) Prospects
Per the Zacks analyst, Dave & Buster’s traffic and sales are likely to be hurt by dismal traffic on account of the Omicron variant. Also, the rise in labor and commodity costs remains a concern.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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