Top Research Reports for Microsoft, Coca-Cola & Accenture
Friday, March 15, 2024
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 Corporation (MSFT), The Coca-Cola Company (KO) and Accenture plc (ACN). 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 >>>
Microsoft has modestly outperformed the Zacks Tech sector over the past year (+55.9% vs. +51.3%) and done far better than the broader market over the same time period (+55.9% vs. +32.4% for the S&P 500 index). The company’s last quarterly results benefited from strong Intelligent Cloud and Productivity and Business Processes revenues. Productivity and Business Processes revenues rose due to a strong adoption of Office 365 Commercial solutions.
Microsoft 365 Consumer subscribers grew to 78.4 million. Continued momentum in the small and medium businesses, frontline worker offerings and a gain in revenue per user drove the top line. Intelligent Cloud revenues were driven by growth in Azure and other cloud services. Solid adoption of Azure AI, which now has a clientele of more than 53,000 customers holds promise.
However, Office's declining commercial licensing has been a headwind due to the continued customer shift to cloud offerings. Higher operating expenses and spend on Azure enhancements amid stiff competition in the cloud space remains a concern.
(You can read the full research report on Microsoft here >>>)
Shares of Coca-Cola have gained +3.5% over the past year against the Zacks Beverages - Soft drinks industry’s gain of +7.9%. The company continues to witness positive business trends as reflected by its robust surprise history. KO’s sales and earnings beat estimates for the third consecutive quarter in third-quarter 2023.
Earnings and sales also improved year over year. Strong revenue growth across most of its operating segments aided by improved price/mix and increased concentrate sales boosted the results. It is poised to gain from innovations and accelerating digital investments. It provided an upbeat guidance for 2023.
However, shares of Coca-Cola lagged the industry in the past year. KO continues witness inflationary cost pressures, related to higher commodity and material costs, as well as higher marketing investments.
(You can read the full research report on Coca-Cola here >>>)
Accenture shares have outperformed the Zacks Consulting Services industry over the past year (+51.8% vs. +48.1%). Technological prowess, contribution from acquisitions, strong growth prospects and dividend payouts make the shares attractive.
The company continues to witness strong demand for application modernization and maintenance, cloud enablement and cybersecurity-as-a-service. These trends are boosting its managed services business across the world. A disciplined acquisition strategy helps Accenture to channelize business in high-growth areas.
On the flip side, pricing pressure due to significant competition from strong companies like Genpact, Cognizant and Infosys, remains a concern. Global presence exposes the company to foreign currency exchange rate fluctuations.
(You can read the full research report on Accenture here >>>)
Other noteworthy reports we are featuring today include Applied Materials, Inc. (AMAT), Pfizer Inc. (PFE) and TotalEnergies SE (TTE).
Director of Research
Sheraz Mian
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)
Coca-Cola's (KO) Digital Investments to Aid the Top Line
ATI Solutions Buyout Aids Accenture (ACN) Amid Talent Cost
Featured Reports
Applied Materials (AMAT) Rides on Strength in AGS Segment
Per the Zacks analyst, solid adoption of 200-mm systems and strengthening subscription business are benefiting Applied Materials Applied Global Services (AGS) segment.
Pfizer's (PFE) New Products Can Drive Long Term Sales Growth
Though Pfizer's (PFE) revenues from COVID products are declining sharply, it has launched some key non-COVID products in 2023, which can drive long-term sales and profit growth, per the Zacks analyst.
Expanding LNG & Clean Energy Assets Aid TotalEnergies (TTE)
Per the Zacks analyst TotalEnergies's presence in entire LNG value chain and expansion of clean energy generation through joint venture and acquisition will boost its performance.
New Buyouts Aid Boston Scientific (BSX), Rising Expenses Ail
The Zacks analyst is impressed with Boston Scientific strongly gaining from its strategic buyouts of Relievant Medsystems, Apollo Endosurgery and Acotec. Yet, rising expenses continue to dent growth.
Cheniere Energy's (LNG) Gas Export Dominance Bodes Well
The Zacks analyst likes Cheniere's competitive advantage of being the first and dominant natural gas exporter in the U.S. market but is concerned over the huge debt load of nearly $24 billion.
Restructuring Aids Barclays (BCS) Amid Weak Revenue Growth
Per the Zacks analyst, Barclays' business simplifying and restructuring efforts continue to aid efficiency. Yet, the uncertainty about the performance of the capital markets might hurt the top line.
Healthy Demand For Rental Units Aids UDR Amid High Supply
Per the Zacks analyst, geographically diverse portfolio, technological moves and healthy balance sheet bode well for UDR's growth. However, elevated deliveries and high interest rates are concerns.
New Upgrades
Allison (ALSN) to Gain From Buyouts & Rising Defense Budget
Per the Zacks analyst, the acquisition of the Off-Highway transmission portfolio of AVTEC positions Allison for growth opportunities. Rising global defense budgets also augur well.
Iridium's (IRDM) Performance Gains from Higher Subscribers
Per the Zacks analyst, Iridium's performance is gaining from increasing subscribers. The company expects engineering and support revenue to benefit owing to the space development agency contract
Growing Fee Revenue, Inorganic Growth aid CNO Financial (CNO)
Per the Zacks analyst, CNO Financial's performance, driven by fee revenues and insurance policy income, has led to significant growth. Inorganic growth and technological investments also bode well.
New Downgrades
Macroeconomic Headwinds to Hurt Perrigo's (PRGO) Topline
While Perrigo's (PRGO) has initiated several initiatives to lower its costs and improve margins, the Zacks Analyst is concerned since sales continue to be hurt due to macroeconomic pressures.
Financing Incentives & Lot Costs Ail Meritage Homes (MTH)
Per the Zacks analyst,, decline in closing average sales price and volumes along with higher financing incentives and lot costs are hurting Meritage Homes.
Columbia Sportswear (COLM) Hurt by Soft Demand, High Costs
Per the Zacks analyst, Columbia Sportswear is navigating a tough U.S. landscape, with sales being hurt by sluggish consumer demand. This, along with high SG&A costs are likely to hurt 2024 profits.
7 Best Stocks for the Next 30 Days
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Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.2% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>Microsoft Corporation (MSFT) : Free Stock Analysis Report
Accenture PLC (ACN) : Free Stock Analysis Report
CocaCola Company (The) (KO) : Free Stock Analysis Report
Pfizer Inc. (PFE) : Free Stock Analysis Report
Applied Materials, Inc. (AMAT) : Free Stock Analysis Report
TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report
