Tuesday, January 17 2017

Today's Research Daily features new research reports on 16 major stocks, including Microsoft (MSFT), Biogen (BIIB) and Home Depot (HD).

Buy rated Microsoft shares lagged the Zacks Tech sector through the fall, but have led the way over the last three months (up +8.7% versus +3.3%) on greater appreciation for the company's reorganization and repositioning. Notably, estimates have been going up ahead of the company's Q2 earnings release. The Zacks analyst points to the company's continuing enterprise strength, benefits from the Office 365 subscription model, strong growth prospects of Azure and promising new products. The recent acquisition of artificial intelligence startup Maluuba is a big positive for the company given the growing demand for artificial intelligence techniques throughout the world. Further, the anticipated completion of the LinkedIn acquisition will boost Microsoft's presence in the social media market. (You can read the full research report on Microsoft here >>)

Biogen shares initially gained from the post-election rally, but have since underperformed the broader pharma space as the macro issues plaguing the space still continue. These issues notwithstanding, the analyst likes the Buy rated stock’s strong position in the multiple sclerosis market primarily due to a wide range of products. Cost cutting efforts and MS franchise sales should continue to drive growth. Moreover, the upcoming spin-off of the hemophilia business will allow Biogen to focus on the neurology segment, its key area of expertise. Estimates have also gone up lately ahead of the Q4 earnings results. The company has a positive record of earnings surprises in recent quarters. (You can read the full research report on Biogen here>>)

Buy rated Home Depot shares have outperformed the Zacks Retail sector over the last three months, gaining +7.4% over the period versus the sector’s +0.8% gain in the year-to-date period. Solid execution and a consistent housing market recovery have been its primary growth drivers. The analyst likes Home Depot’s focus on developing merchandising tools, which, along with investment in building its interconnected capabilities is expected to boost its top line, and enhance market share. The company is on track to achieve its long-term dividend payout, share repurchase and return on investment targets. Estimates have been stable ahead of the company’s Q4 earnings release, while it has positive record of earnings surprises in recent quarters. (You can read the full research report on Home Depot here >>)

Other noteworthy reports we are featuring today include 21st Century Fox (FOXA), Bristol-Myers (BMY) and Berkshire Hathaway (BRK.B).

Zacks' Top 10 Stocks for 2017

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Sheraz Mian

Director of Research

Note: Note: Sheraz Mian regularly provides earnings analysis on Zacks.com and appears frequently in the print and electronic media. His weekly earnings related articles include Earnings Trends and Earnings Preview.

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