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Top Analyst Reports for Bank of America, Oracle & Intuit

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Monday, February 25, 2019

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 Bank of America (BAC - Free Report) , Oracle (ORCL - Free Report) and Intuit (INTU - Free Report) . 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 >>>

Bank of America possesses an impressive earnings surprise history, beating expectations in each of the trailing four quarters. The Zacks analyst thinks rise in loan and deposit balances, higher interest rates and efforts to control expenses will likely support profitability.

Also, its initiatives to expand into new markets and digital offerings are expected to further enhance cross selling opportunities. However, dismal performance of capital markets has been hurting the company’s investment banking operations. Thus, this is will likely hamper its fee income growth to some extent in the quarters ahead.

(You can read the full research report on Bank of America here >>>).

Oracle is benefiting from strong adoption of its cloud-based solutions, comprising Fusion ERP and Fusion HCM, among others. The Zacks analyst thinks partnerships with the likes of Accenture are helping the company rapidly expand its cloud-base clientele. Also, anticipated strong demand for the next-generation autonomous database supported by machine learning will boost competitive position against AWS.

Oracle is anticipated to benefit from growing retail clientele. The company has positive record of earnings surprises in recent quarters. Nonetheless, stiff competition in the cloud market from dominant players is anticipated to limit margin expansion.

Further, lower hardware volumes are anticipated to hurt top-line growth consequently keeping margins under pressure. Additionally, integration risks from buyouts remain a concern. Notably, estimates have been stable lately ahead of the company’s Q3 earnings release.

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

Intuit's Q2 results benefited from solid online ecosystem revenue growth. The Zacks analyst thinks impressive growth across its Small Business and Self-Employed, and Consumer Tax segments is a tailwind. TurboTax Live offering also is likely to be a tailwind to the Consumer tax business. A solid momentum of the company’s lending product, QuickBooks Capital is a positive for the company.

Moreover, the company’s strategy of shifting its business to cloud-based subscription model will help generate more stable revenues over the long run. However, high costs and expenses remain a major concern. Competition from companies like Microsoft also increases pricing pressure.

Again, due to the business being seasonal, Intuit is exposed to significant operational risks. Moreover, it expects QuickBooks desktop unit to decline in single digits, and desktop ecosystem revenues to be flat in fiscal 2019.

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

Other noteworthy reports we are featuring today include Southwest Airlines (LUV - Free Report) , Consolidated Edison (ED - Free Report) and American Water Works (AWK - Free Report) .

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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>>>

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