Friday, January 19, 2024

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), The Procter & Gamble Company (PG) and AstraZeneca PLC (AZN). 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 year (+65.4% vs. +57.4 %). 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 are suffering from continued weakness in 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 Procter & Gamble have outperformed the Zacks Soap and Cleaning Materials industry over the past year (+6.2% vs. +4.9%). The company has been gaining from robust pricing and a favorable mix, along with strength across segments.

It has been focused on productivity and cost-saving plans to boost margins. This led to the top and bottom lines beating the consensus mark for the fifth consecutive quarter in the first quarter of fiscal 2024. Consequently, PG has provided an optimistic fiscal 2024 view.

However, the company has been witnessing supply-chain issues, higher SG&A costs, higher transportation costs and rising inflation. Its significant international presence exposes it to foreign currency risks, which acts as a headwind.

(You can read the full research report on Procter & Gamble here >>>)

AstraZeneca shares have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-1.8% vs. +19.1%). The company’s diabetes franchise faces stiff competition while pricing pressure hurts sales in the respiratory unit. Sales have slowed down in its key market, China.

Nevertheless, AstraZeneca enjoys a diverse product portfolio and a global footprint. Its key drugs like Lynparza, Tagrisso, Imfinzi, Fasenra and Farxiga should keep driving revenues.  AstraZeneca’s pipeline is strong with important phase III data readouts lined up.

It has also been engaged in external acquisitions and strategic collaborations to boost its pipeline while investing in geographic areas of high growth like emerging markets.  Backed by its new products and pipeline drugs, AstraZeneca believes it can post industry-leading top-line growth in the 2025-2030 period

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

Other noteworthy reports we are featuring today include General Electric Company (GE), Lam Research Corporation (LRCX) and Boston Scientific Corporation (BSX).

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>>>