Monday, July 10, 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 Alibaba Group Holding Limited (BABA), Medtronic plc (MDT) and Schlumberger Limited (SLB). 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 Alibaba have gained +2.8% over the year-to-date period against the Zacks Internet - Commerce industry’s gain of +31.9%. The company’s solid momentum across the international commerce retail businesses is driving its top-line growth. Strength in Trendyol, Lazada and AliExpress continues to contribute well.

Additionally, solid momentum across financial services, education and automobile industries remains a positive for the company’s cloud business. This apart, strength across the local consumer services and Cainiao logistics services, Alibaba Health and Freshippo is contributing well.

However, uncertainties associated with coronavirus pandemic remain major concerns, especially for Alibaba’s domestic businesses. Sluggish China commerce business is a concern. Additionally, softness in digital media business is a headwind. Rising expenses associated with new initiatives are overhangs.

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

Medtronic shares have outperformed the Zacks Medical - Products industry over the past six months (+8.7% vs. +1.5%). The company is strategically expanding its global presence to address the unmet demand for advanced medical technologies.

Within Cardiovascular, Medtronic is gaining market share, banking on product launches. Within MedSurg, Medtronic is scaling production of Hugo RAS. Innovations and market expansion efforts are helping it offset the impact of the inflation and supply disruptions.

However, Medtronic’s strong liquidity position should allow it to meet its near-term debt obligations. All these factors support our bullish stance on the stock.

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

Shares of Schlumberger have outperformed the Zacks Oil and Gas - Field Services industry over the past year (+62.8% vs. +44.3%). The company is a well-known name for providing diversified oilfield services and products to companies belonging to the energy sector. Being the leading provider of technology for complex oilfields, the firm is well-poised to take up new offshore projects in international markets.

SLB expects upstream spending across the globe to continue growing, which in turn could increase demand for well completion activities. With broad-based growth in overall activities, SLB expects to benefit from increased service pricing.

However, the cost of revenue continues to rise, affecting its income statement. Moreover, declining operating cashflows is a concern. Also, the aggressive capital budget remains a headwind for the company. SLB’s overall business is highly vulnerable to extreme commodity price volatility. As such, the stock warrants a cautious stance.

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

Other noteworthy reports we are featuring today include Cisco Systems, Inc. (CSCO), Zoetis Inc. (ZTS) and Moody's Corporation (MCO).

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>>>