Technology

Top Analyst Reports for Walmart, Oracle & Sanofi

Tuesday, September 15, 2020

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 Walmart (WMT), Oracle (ORCL) and Sanofi (SNY). 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 >>>

Walmart shares have lost ground lately, but the stock is otherwise a standout performer this year - up +15.9% vs. +5.1% for the S&P 500 index. The Zacks analyst believes that the company has been benefiting from rising demand for grocery and general merchandise items amid the coronavirus-led stay-at-home trends. The announcement of the Walmart+ subscription service promises to give consumers a competitive alternative to Amazon's (AMZN) Prime service. 

Stay-at-home trends are also boosting e-commerce sales, which soared 97% in second-quarter fiscal 2021. During the quarter, sales and earnings beat the consensus mark and grew year over year, with U.S. comps rising for the 24th straight time. In the U.S. segment, both store and online sales remained strong, supported by government stimulus.

Clearly, Walmart’s efforts to enhance deliveries are yielding results. However, the company is seeing high COVID-19-related costs, especially associated with special bonuses. Moreover, price investments are hurting gross margin to an extent.

(You can read the full research report on Walmart here >>>)

Shares of Oracle have gained +39.2% over the past six months against the Zacks Computer Software industry’s rise of +56.5%. The Zacks analyst believes that Oracle’s growing cloud business and the latest autonomous database is expected to boost competitive position in the long haul.

Oracle's fiscal first quarter results benefited from rapid adoption of data cloud solutions and Autonomous Database. Strong uptake of cloud-based solutions, comprising NetSuite ERP, Fusion ERP and Fusion HCM, aided revenue growth. Also, companies like Xactly, 8x8 and Zoom Video Communications have selected Oracle Cloud Infrastructure services to address business needs, which is a testament to the strength of its cloud offerings.

Solid demand for the Oracle Dedicated Region Cloud@Customer supported by ML is anticipated to drive the top line. However, coronavirus crisis led business impacts remain an overhang on renewals and payments. Rise in spend on product enhancements amid stiff competition in the cloud market is anticipated to weigh on margins.

(You can read the full research report on Oracle here >>>)

Sanofi shares have gained +18.5% over the past year against the Zacks Large Cap Pharmaceuticals industry’s rise of +13.8%. The Zacks analyst believes that Sanofi’s Specialty Care segment is on a strong footing, particularly with regular label expansion of Dupixent.

The drug has, in a very short time, become the key top-line driver for Sanofi. Sanofi possesses one of the world’s leading vaccine operations. Sanofi’s R&D pipeline is strong and several positive data read-outs are expected in 2020. Its cost-savings and efficiency initiatives are supporting bottom-line growth.

However, headwinds include weak performance of the Diabetes unit, generic competition for many drugs and slower-than-expected uptake of core products like Praluent. COVID-19 resulted in slowdown of new patient additions, deferral of procedures and some vaccinations, and lower in-pharmacy traffic in Q2.

(You can read the full research report on Sanofi here >>>)

Other noteworthy reports we are featuring today include American Tower (AMT), GlaxoSmithKline (GSK) and CVS Health (CVS).

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Sheraz Mian

Director of Research

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

Walmart's (WMT) Sales to Gain on Robust Ecommerce Business

Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships

Sanofi (SNY) Specialty Care Unit Helps Sales, Pipeline Solid

Featured Reports

Portfolio Expansion Aids American Tower (AMT), High Debt Ails

Per the Zacks Analyst, efforts to expand footprint in emerging markets will support American Tower's results.

Glaxo's (GSK) Cancer Pipeline Grows Amid Rising Competition

The Zacks analyst is encouraged by the company's initiatives to focus on its oncology pipeline.

CVS Health (CVS) Tackles Pandemic Crisis with Digital Strategy

The Zacks analyst believes CVS Health's consumer-centric digital strategy will help the company withstand pandemic-led challenges.

Uber Benefits from Delivery Business Amid Mobility Weakness

The Zacks analyst is impressed by the surge in Uber's delivery business as coronavirus restricts people to their homes.

Infosys (INFY) Rides on AI-Driven Digital Transformation

Per the Zacks analyst, Infosys is benefiting from higher investments by clients in AI-driven digital transformation, automation and large deal wins.

Buyouts, Trading Focus Aid Schwab (SCHW) Amid Lower Rates

Per the Zacks analyst, strategic acquisitions and efforts to strengthen trading business will likely support Schwab's profitability.

Las Vegas Sands (LVS) Banks on Expansion Efforts, Traffic Low

Per the Zacks analyst, Las Vegas Sands is likely to benefit from investment in new capital projects in Macao and Singapore.

New Upgrades

High Iron Prices, Cost Control Efforts to Drive Vale (VALE)

Per the Zacks analyst, high iron ore prices, lower debt levels, and focus on improving quality, productivity, and lowering costs will drive growth for Vale.

Expansion Efforts & Strong Financials to Buoy Copart (CPRT)

Expansion efforts in Canadian and European markets are expected to boost Copart's prospects. The Zacks analyst also likes the firm's low leverage of 18%, which increases its financial flexibility.

Cost Control Actions Aid Badger Meter (BMI) Amid Weak Demand

Per the Zacks analyst, Badger Meter is focused on its cost containment actions to mitigate the impact of sales decline on profitability.

New Downgrades

Hyatt (H) Hurt by Dismal Revpar Due to Coronavirus Pandemic

Per the Zacks analyst, Hyatt has been witnessing a significant decline in Revpar due to a decline in demand owing to travel restrictions and containment efforts.

Mack-Cali's (CLI) Sales of Assets to Curb Near-Term Growth

Per the Zacks analyst, Mack-Cali's suburban office asset sales will have a dilutive impact on its near-term results. Also, high-leveraged balance sheet is worrisome.

Tepid Passenger Revenues, Capacity Cuts Hit JetBlue (JBLU)

The Zacks analyst is worried about the coronavirus-led decline in passenger revenues (down 51.6% in first-half 2020). Moreover, trimmed capacity is flaring up unit costs.


Click to get this free report

Walmart Inc. (WMT): Free Stock Analysis Report

Sanofi (SNY): Free Stock Analysis Report

Oracle Corporation (ORCL): Free Stock Analysis Report

GlaxoSmithKline plc (GSK): Free Stock Analysis Report

CVS Health Corporation (CVS): Free Stock Analysis Report

American Tower Corporation REIT (AMT): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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