Back to top

Image: Bigstock

The Zacks Analyst Blog Highlights: Microsoft, Novartis, Goldman Sachs, Starbucks and General Motors

Read MoreHide Full Article

For Immediate Release

Chicago, IL – July 23, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Microsoft (MSFT - Free Report) , Novartis (NVS - Free Report) , Goldman Sachs (GS - Free Report) , Starbucks (SBUX - Free Report) and General Motors (GM - Free Report) .

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Friday’s Analyst Blog:

Top Research Reports for Microsoft, Novartis and Goldman Sachs

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, Novartis and Goldman Sachs. 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 >>>

Buy-rankedMicrosoft’s shares have outperformed the Zacks Technology sector on a year-to-date basis (up +22.1% versus +8.4%) Microsoft’s fourth quarter fiscal 2018 results were impressive. Both earnings and revenues increased on a year-over-year basis.

The Zacks analyst thinks the company is benefiting from growing user base of its different applications like Office 365 commercial, Dynamics, Outlook mobile and Teams. Moreover, Azure’s expanding customer base is a key catalyst. Microsoft’s gaming segment is performing well, primarily driven by a combination of Xbox Live, Game Pass subscriptions and Mixer, which are driving user engagement.

Further, acquisitions like PlayFab and GitHub expand Microsoft’s total addressable market (TAM) and penetration. Additionally, the company’s expanding partner base is a key catalyst. However, projections of a moderating growth rate in commercial cloud gross margin, and OEM Pro and Windows commercial businesses is a headwind.

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

Shares of Novartis have underperformed the Zacks Large-Cap Pharmaceuticals industry (-3.7% vs. -1.7%), on a year-to-date basis. Novartis’ beat sales estimate in the second-quarter on strong performance of Cosentyx and Entresto. Earnings, however, fell short. Both drugs continue to perform well driven by underlying demand. The label expansion of oncology drugs also lifted the top line.

Novartis is looking to transform into a core pharma company with focus on additional therapies like gene therapy with the acquisition of Avexis. The company intends to spin-off its ophthalmology division, Alcon, into a separately-traded standalone company and exit its antibacterial and antiviral research program as well.

However, the generic division, Sandoz continues to face pricing pressure in the United States. The division also suffered a blow when the FDA issued a CRL to its generic Advair Diskus. Additionally, the loss of patent protection for key drugs is a cause of concern.

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

Buy-ranked Goldman Sachs’ shares have lost -9.9% year to date, underperforming the -1.8% decline of the Zacks Investment Banking industry. However, the company boasts an impressive earnings surprise history. It surpassed expectations for earnings in all the trailing four quarters.

The company’s second-quarter 2018 results reflected strong Fixed Income, Currency and Commodities (FICC) Client Execution revenues, and a continued momentum in investment banking business. However, elevated expenses were an undermining factor.

Though litigation issues are concerns, the Zacks analyst thinks the company’s well-diversified business and focus to capitalize on growth opportunities through strategic moves will continue to strengthen the overall business. Further, its cost-control measures are commendable. Additionally, the company’s steady capital-deployment activities have boosted investors' confidence, along with the Fed's approval to 2018 Capital Plan.

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

Other noteworthy reports we are featuring today include Starbucks and General Motors.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com/

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.