Thursday, June 29, 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 Microsoft Corporation (MSFT), Anheuser-Busch InBev SA/NV (BUD) and HCA Healthcare (HCA). 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 outperformed the Zacks Computer - Software industry over the past six months (+40.7% vs. +39.0%) on the back of the company's AI leverage. The company is riding on strong growth from Intelligent Cloud and Productivity and Business Processes. Intelligent Cloud revenues have been driven by growth in Azure and other cloud services.

Productivity and Business Processes revenues continues to increase due to strong adoption of Office 365 Commercial solutions. Continued momentum in the small and medium businesses and frontline worker offerings, as well as gain in revenue per user drove top-line growth.

However, More Personal Computing revenues decreased due to weak Windows and Devices businesses. Steady performance in Talent Solutions aided LinkedIn revenues. Also, declining gaming revenues has been a headwind. Increasing spend on Azure enhancements amid stiff competition in the cloud space remains a concern.

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

Shares of Anheuser-Busch InBev have outperformed the Zacks Beverages - Alcohol industry over the past year (+4.6% vs. +2.5%). The company has been benefiting from continued business momentum, which resulted in top and bottom-line growth in first-quarter 2023. Further, the company’s relentless execution, investment in brands and accelerated digital transformation aided performance.

The top line benefited from strong consumer demand for its portfolio, consistent execution of its strategy and strength of the beer category globally. The expansion of the Beyond Beer portfolio, and investments in B2B platforms, e-commerce and digital marketing bode well. Backed by the continued business momentum, the company outlined its view for 2023.

However, shares of AB InBev lagged the industry in the past three months on lower-than-expected earnings in the first quarter. AB InBev’s gross and EBIT margin declined in the first-quarter, driven by higher cost of sales and SG&A expense.

(You can read the full research report on Anheuser-Busch here >>>)

HCA Healthcare shares have outperformed the Zacks Medical - Hospital industry over the past year (+79.9% vs. +66.5%). The company’s revenues remain on an uptick on the back of a surge in admissions, outpatient surgeries and other procedures. Multiple buyouts aided it in increasing patient volumes, enabled network expansion, added hospitals to its portfolio and boosted business scale.

HCA Healthcare has been gaining from its telemedicine business line. HCA Healthcare resorts to prudent capital deployment via buybacks and dividends. As of Mar 31, 2023, it had $3.7 billion left under its buyback authorization. A solid business outlook added to the positives.

However, the company's escalating operating expenses have been weighing on the margins. A high debt level induces rise in interest expenses. As such, the stock warrants a cautious stance.

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

Other noteworthy reports we are featuring today include The Southern Company (SO), Delta Air Lines (DAL) and TELUS (TU).

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>>>