Today's Must Read
High Speed Internet Subscriber Gain Benefits Comcast (CMCSA)
Operational Growth Aids Accenture (ACN) Amid Pricing Pressure
Monday, December 21, 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 Alphabet (GOOGL), Comcast (CMCSA) and Accenture (ACN). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Alphabet shares have underperformed the Zacks Internet Services industry in the year to date period (+28.9% vs. +33.9%). The Zacks analyst believes that Alphabet's strengthening cloud unit is aiding substantial revenue growth. Moreover, expanding data centers will continue to bolster its presence in the cloud space.
Further, major updates in its search segment are enhancing the search results, which is a major positive. Moreover, Google’s robust mobile search is gaining solid momentum. Additionally, strong focus on innovation of AI techniques and the home automation space should aid business growth in the long term.
Moreover, its deepening focus on wearables category remains a tailwind. However, the company’s growing litigation issues and increasing expenses might hurt profitability. Further, the company faces persistent pressure from advertisers to tighten controls on YouTube video service. This remains a concern.
Shares of Comcast have gained +13.2% over the past year against the Zacks Cable Television industry’s gain of +17.5%. The Zacks analyst believes that Comcast is benefiting from solid high-speed Internet customer wins.
Its strategy to provide high-speed Internet at an affordable price plays a pivotal role in providing connectivity and improving customer experience. Moreover, coronavirus-led increased media consumption, and work-from-home and online-learning waves bode well for Comcast’s Internet business.
Moreover, its streaming service Peacock has gained significant tract within a short span of time and is a key catalyst in driving broadband sales. However, Comcast persistently suffers from video-subscriber attrition due to cord cutting. Theme park revenues are expected to suffer from indefinite closure of Hollywood park. Further, weakness in film business is also a headwind. Moreover, a leveraged balance sheet is a concern.
Accenture’s shares have gained +27.4% over the past six months against the Zacks Consulting industry’s rise of +31.2%. The Zacks analyst believes that the company has been steadily gaining traction in its outsourcing and consulting businesses. It has been strategically enhancing its cloud and digital marketing suite through acquisitions and partnerships.
The company’s strong operating cash flow has helped it reward its shareholders in the form of dividends as well as pursue opportunities in areas that show true potential.
However, pricing pressure due to significant competition from strong companies like Genpact, Cognizant and Infosys, remains a concern. Global presence exposes it to foreign currency exchange rate fluctuations. Buyout-related integration risks continue to remain a concern.
Other noteworthy reports we are featuring today include Novo Nordisk (NVO), Boeing (BA) and TOTAL SE (TOT).
Breakout Biotech Stocks with Triple-Digit Profit Potential
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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>>>