Technology

Top Research Reports for Microsoft, Oracle & Medtronic

Thursday, August 27, 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 Microsoft (MSFT), Oracle (ORCL) and Medtronic (MDT). 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 shares have vastly outperformed the S&P 500 in the year-to-date period (+40.2% vs. +8.1%) on the back of continued momentum in Azure, impressive Teams user growth triggered by coronavirus crisis led work-from-home, online learning wave and tele healthcare trends.

Solid uptake of Surface devices and Xbox Game Pass aided growth. The company is also gaining from growing user base of its different applications including Office 365 commercial, and Dynamics. Moreover, Azure’s expanding customer base is a key catalyst.

Furthermore, it is well poised to expand the total addressable market through acquisitions of GitHub and Flipgrid. However, macroeconomic weakness in job market and lower spend on advertising due to coronavirus pandemic are likely to weigh on LinkedIn and Search revenues. Also, delays in consulting business are anticipated to limit growth.

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

Shares of Oracle have gained +16.3% over the past six months against the Zacks Computer Software industry’s rise of +37.5%. The Zacks analyst believes that Oracle is benefiting from rapid adoption of data cloud solutions and Autonomous Database.

Strong uptake of cloud-based solutions, comprising NetSuite ERP, Fusion ERP and Fusion HCM, remains notable. Moreover, companies like 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 spending 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 >>>)

Medtronic shares have gained +6.1% over the past three months against the Zacks Medical Products industry’s rise of +3.1%. The Zacks analyst believes that headwinds like unfavorable currency movement and global economic uncertainties continue to adversely affect Medtronic. Also, several legal and regulatory issues are intimidating in the short term.

While Medtronic’s first-quarter fiscal 2021 earnings and revenues were ahead of the respective Zacks Consensus Estimate, the company registered significant year-over-year decline in these figures. Barring Respiratory, Gastrointestinal, & Renal, there were dismal performance in all business segments and geographies.

However, there was a faster than expected recovery in the quarter. Procedure volumes began to recover this quarter in multiple markets globally. Also, the company drove market share gains in a number of large businesses. It saw significant growth in ventilators sales in the first quarter.

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

Other noteworthy reports we are featuring today include Booking Holdings (BKNG), Anthem (ANTM) and Cigna (CI).

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

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

Microsoft (MSFT) Rides on Robust Adoption of Azure & Teams

Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships

Ventilator Sales Aid Medtronic (MDT), Volume Recovery Starts

Featured Reports

Improving Bookings Aid Booking Holdings (BKNG) Amid Risks

Per the Zacks analyst, imrpoving bookings in a few countries where stay-at-home restriction has been relaxed are benefiting Booking Holdings.

Strategic Initiatives Aid Anthem (ANTM), Rising Costs Hurt

Per the Zacks analyst, a number of acquisitions and collaborations have helped it enhance its capabilities and boost its Medicare business.

Express Scripts Acquisition, Revenue Growth Aid Cigna (CI)

Per the Zacks analyst, the buyout of Express Scripts has diversified Cigna's operations opening up new revenue streams; increasing membership, superior products, and services drive revenue growth.

CSX Strong on Reining in Costs Amid Contraction of Volumes

The Zacks analyst is impressed with CSX's efforts to check costs. Efforts to reward its shareholders are also encouraging. Tepid volumes (down 11% in first-half 2020), however, raise concerns.

Chipotle (CMG) Banks on Digital Initiatives, High Costs Ail

Per the Zacks analyst, Chipotle benefits from its redesigned online ordering site comprising of online payment and meal customizations.

Regular Investments Aid PSEG (PEG), Operational Risks Hurt

Per the Zacks Analyst, PSEG's regular investments in infra projects bolsters its growth prospects. However, it is subject to operational risks associated with transmission and distribution business.

Cost Savings Strategy Aids Deutsche Bank (DB) Amid Low Rates

Per Zacks analyst, Deutsche Bank's cost-savings efforts to drive efficiency are encouraging and might neutralize impact of high legal costs, going forward.

New Upgrades

North America Unit Drives Hain Celestial's (HAIN) Top-Line

Per the Zacks analyst, Hain Celestial's top-line gains from the North America unit, backed by the solid Get Bigger brands. Sales are likely to rise mid-single digit in first-quarter fiscal 2021.

Big Lots' (BIG) Transformation Initiative Aids Performance

Per the Zacks analyst, Big Lots is gaining from its transformation efforts, including the Operation North Star initiative. This focuses on top-line growth, cost containment and systems enhancement.

Focus on TAPS, Cost-Saving Efforts Aid Covanta Holding (CVA)

Per the Zacks analyst, Covanta Holding's focus on first Total Ash Processing System facility to reduce long-term costs of ash disposal along with cost-saving measures bode well for growth.

New Downgrades

High COVID-19 Costs a Worry for TJX Companies (TJX) Margins

TJX Companies expects additional COVID-19 costs of about 250 bps each in the third and fourth quarters of fiscal 2020. The Zacks analyst expects this, along with high freight costs to hurt margins.

Pilgrim's Pride (PPC) Hurt by Soft U.S. & Mexico Operations

Per the Zacks analyst, Pilgrim's Pride's sales are being dented by pandemic-led hurdles in U.S. operations and macroeconomic woes in Mexico. Sales in both these regions declined in the second quarter.

Weak Market Demand & High Debt Hurt Applied Industrial (AIT)

Per the Zacks analyst, Applied Industrial is struggling with weakness across its mining, machinery, oil & gas, and metal end markets amid the coronavirus outbreak. High debt level remains concerning.


Click to get this free report

Oracle Corporation (ORCL): Free Stock Analysis Report

Microsoft Corporation (MSFT): Free Stock Analysis Report

Medtronic PLC (MDT): Free Stock Analysis Report

Cigna Corporation (CI): Free Stock Analysis Report

Booking Holdings Inc. (BKNG): Free Stock Analysis Report

Anthem, Inc. (ANTM): 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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