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Research Daily

Tuesday, June 14, 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 Corporation (MSFT), Amgen Inc. (AMGN), and Honeywell International Inc. (HON). 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 held up better than the broader Tech sector in the ongoing market deline (down -19.6% in the year-to-date period vs. -24.2% decline for the Zacks Tech sector), reflecting the company's entrenched standing in the space. But the stock has nevertheless lagged the broader market as investors reprice the risks associated with a faster growing software player in a rising interest rate environment. Nevertheless, Microsoft’s performance is benefiting from strength in its Azure cloud platform amid accelerated global digital transformation. Teams’ user growth is gaining from continuation of remote work and mainstream adoption of hybrid/flexible work model.

Recovery in advertising and job market boosted LinkedIn and Search revenues. Solid uptake of new Xbox consoles is aiding the gaming segment performance. The company is witnessing growth in user base of its different applications including Microsoft 365 suite, Dynamics and Power Platform. Microsoft expects Surface revenues to grow in the mid-teens range, driven by strong demand for premium devices.

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

Amgen shares have outperformed the Zacks Medical - Biomedical and Genetics industry over the past year (+2.1% vs. -45.5%) on the back of a robust pipeline of early and late-stage assets. Several phase III readouts are due in 2022. Lumakras, a first-in-class lung cancer treatment, is off to an excellent start while its label expansion studies are progressing rapidly. Amgen boasts a strong biosimilars portfolio with potential new products expected to drive long-term growth.

However, pricing and competitive pressure are impacting many of Amgen’s products and franchises. Several of Amgen’s marketed drugs are facing increased pricing headwinds. The IRS tax litigation is an overhang on Amgen shares. Also increasing competition for its legacy products is hurting the sales.

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

Honeywell shares have performed better than the peer group as well as the broader market during the ongoing market weakness, which reflects the company's operating excellence and the favorable outlook for its key end markets. 

The Zacks analyst sees the company to benefit from strength in productivity solutions and services, advanced sensing technologies and gas detection businesses. For 2022, the company expects its organic revenues to increase 4-7% year over year. It is likely to gain from acquisitions made over time. Also, the company’s ability to generate strong cash flows adds to its strength. It rewards shareholders handsomely through dividends and share buybacks.

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

Other noteworthy reports we are featuring today include Booking Holdings Inc. (BKNG), Chubb Limited (CB), and Stryker Corporation (SYK).

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>>>

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