Today's Must Read
Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships
Ventilator Sales Aid Medtronic (MDT), Volume Recovery Starts
Thursday, August 27, 2020
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 (MSFT), Oracle (ORCL) and Medtronic (MDT). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Microsoft shares have vastly outperformed the S&P 500 in the year-to-date period (+40.2% vs. +8.1%) on the back of continued momentum in Azure, impressive Teams user growth triggered by coronavirus crisis led work-from-home, online learning wave and tele healthcare trends.
Solid uptake of Surface devices and Xbox Game Pass aided growth. The company is also gaining from growing user base of its different applications including Office 365 commercial, and Dynamics. Moreover, Azure’s expanding customer base is a key catalyst.
Furthermore, it is well poised to expand the total addressable market through acquisitions of GitHub and Flipgrid. However, macroeconomic weakness in job market and lower spend on advertising due to coronavirus pandemic are likely to weigh on LinkedIn and Search revenues. Also, delays in consulting business are anticipated to limit growth.
Shares of Oracle have gained +16.3% over the past six months against the Zacks Computer Software industry’s rise of +37.5%. The Zacks analyst believes that Oracle is benefiting from rapid adoption of data cloud solutions and Autonomous Database.
Strong uptake of cloud-based solutions, comprising NetSuite ERP, Fusion ERP and Fusion HCM, remains notable. Moreover, companies like 8x8 and Zoom Video Communications have selected Oracle Cloud Infrastructure services to address business needs, which is a testament to the strength of its cloud offerings.
Solid demand for the Oracle Dedicated Region Cloud@Customer supported by ML is anticipated to drive the top line. However, coronavirus crisis led business impacts remain an overhang on renewals and payments. Rise in spending on product enhancements amid stiff competition in the cloud market is anticipated to weigh on margins.
Medtronic shares have gained +6.1% over the past three months against the Zacks Medical Products industry’s rise of +3.1%. The Zacks analyst believes that headwinds like unfavorable currency movement and global economic uncertainties continue to adversely affect Medtronic. Also, several legal and regulatory issues are intimidating in the short term.
While Medtronic’s first-quarter fiscal 2021 earnings and revenues were ahead of the respective Zacks Consensus Estimate, the company registered significant year-over-year decline in these figures. Barring Respiratory, Gastrointestinal, & Renal, there were dismal performance in all business segments and geographies.
However, there was a faster than expected recovery in the quarter. Procedure volumes began to recover this quarter in multiple markets globally. Also, the company drove market share gains in a number of large businesses. It saw significant growth in ventilators sales in the first quarter.
Other noteworthy reports we are featuring today include Booking Holdings (BKNG), Anthem (ANTM) and Cigna (CI).
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Director of Research
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>>>