Thursday, January 5, 2023

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 Alphabet Inc. (GOOGL), Adobe Inc. (ADBE) and TotalEnergies SE (TTE). 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 Alphabet have declined -37% over the past year against the Zacks Tech sector's decline of -33.1% and the S&P 500 index's -19.3% decline. The company is faced with a sluggish advertisement market as a result macroeconomic forces beyond its control. Additionally, its growing litigation issues and increasing expenses are are some of the other concerns.

However, Alphabet's strong cloud division is aiding substantial revenue growth. Moreover, expanding data centers will continue to bolster its presence in the cloud space. Further, major updates in its search segment are enhancing the search results.

Also, strong focus on innovation of AI techniques and the home automation space should aid business growth in the long term. The company’s deepening focus on wearables category remains a tailwind. Also, Alphabet’s expanding presence in the autonomous driving space is contributing well.

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

Shares of Adobe have underperformed the Zacks Computer - Software industry over the past year (-35.7% vs. -26.9%) and the broader market's -19.3% decline. The weakening macroeconomic backdrop resulting from Fed tightening in the U.S. and uncertainty in Europe in the wake of the Ukraine war remain major headwinds for Adobe's Digital Media segment. The Zacks analyst also envisions margins pressures on account of elevated expenses.

However, Adobe is benefiting from strong demand for its creative products. The company’s Creative Cloud, Document Cloud and Adobe Experience Cloud products is driving the top-line growth. Additionally, rising subscription revenues and solid momentum across the mobile apps remain major positives.

Further, growth in emerging markets, robust online video creation demand, strong Acrobat adoption and improving average revenue per user remain tailwinds. We remain optimistic about Adobe’s market position, compelling product lines, continued innovation and solid adoption of Creative Cloud.

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

Shares of TotalEnergies have gained +16.9% over the past year against the Zacks Oil and Gas - Refining and Marketing industry’s gain of +24.4%. The company continues to gain from startups, well-spread LNG assets and an expanding upstream portfolio that has exposure to fast-growing hydrocarbon-producing regions.

TotalEnergies streamlines its portfolio through acquisitions, partnerships and divestitures. TotalEnergies is making regular investments to expand the renewable operation and aims to achieve net-zero emissions by 2050. Its production is impacted by the natural decline of oil and natural gas fields.

TotalEnergies remains exposed to acquisition-related risks as these assets contribute a sizable volume to production. TotalEnergies operates in some politically troubled regions, and the ongoing conflict between Russia and Ukraine might affect profitability.

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

Other noteworthy reports we are featuring today include Novo Nordisk A/S (NVO), ConocoPhillips (COP) and Diageo plc (DEO).

Director of Research

Sheraz Mian

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>>>