Monday, February 28, 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 salesforce.com, inc. (CRM), General Motors Co. (GM), and Block, Inc. (SQ). 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 salesforce have underperformed the Zacks Computer - Software industry over the past year (-4.3% vs. +15.3%). However, the Zacks analyst believes that the company will continue to benefit from a robust demand environment as customers undergo a major digital transformation. The rapid adoption of its cloud-based solutions is driving demand for its products.
 

Salesforce’s sustained focus on introducing more aligned products as per customer needs is driving its top-line. Continued deal wins in the international market is another growth driver. Furthermore, the recent acquisition of Slack would position the company to be a leader in the enterprise team collaboration solution space and better compete with Microsoft’s Teams product.
 

Stiff competition is a concern. Also, unfavorable currency fluctuations along with increasing investments in international expansions and data centers are an overhang on near-term profitability.
 

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

Shares of General Motors have underperformed the Zacks Automotive - Domestic industry over the past two year period (+51.0% vs. +167.2%), although the company’s hot-selling brands in America like Chevrolet Silverado, GMC Sierra and Equinox are driving its top line.
 

The Zacks analyst believes that the legacy automaker's big push toward electric vehicles (EVs) are set to boost prospects further. The company plans to roll out 30 fresh EV models by 2025-end. Key launches including the GMC Hummer EV and Cadillac Lyriq crossover EV offer growth visibility. Its Ultium platform is set to rev up its electrification capabilities; the platform seeks to enable the firm’s achieve leadership in software and services.
 

General Motors’ dominant position in the self-driving landscape via Cruise also augurs well. Encouragingly, the company envisions automotive FCF of $7-$9 billion in 2022, implying a significant jump from $2.5 billion recorded in 2021.
 

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

Shares of Block have outperformed the Zacks Internet – Software industry over the past two-year period (+48.5% vs. -16.0%). The Zacks analyst believes that the company is gaining from strong Cash App engagement and its expanding customer base.

Further, rising bitcoin revenues owing to robust Cash App are contributing well to the top-line. Additionally, the company’s strengthening momentum across sellers and online channels, and growing card-not-present GPV are expected to remain tailwinds. Moreover, robust online products, such as Square Online Store, Invoices, Virtual Terminal and eCommerce API are expected to accelerate GPV growth in the near term.
 

However, uncertainties related to the COVID-19 pandemic remain concerns. Higher investments and increasing product development expenses might hurt margins. Rising competition and foreign exchange headwinds are other matters with which the company deals.
 

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

Other noteworthy reports we are featuring today include Schlumberger Ltd. (SLB), IDEXX Laboratories, Inc. (IDXX) and PG&E Corp. (PCG).
 

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>>>