Today's Must Read
Oracle (ORCL) Benefits from Strong Uptake of Cloud Solutions
FedEx (FDX) Gains from Higher Ground Revenues Amid Cost Woes
Thursday, May 6, 2021
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 Berkshire Hathaway (BRK.B), Oracle (ORCL), and FedEx (FDX). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Shares of Berkshire Hathaway have outperformed the Zacks Insurance - Property and Casualty industry in the last one-year period (+63% vs. +51.1%). The Zacks analyst believes that a strong cash position supports earnings-accretive bolt-on buyouts and indicates the company's financial flexibility.
Furthermore, continued insurance business growth fuels increase in float, drive earnings and generates maximum return on equity. A sturdy capital level provides further impetus. However, exposure to catastrophe loss induces earnings volatility and also affects the property and casualty underwriting results of the company.
Oracle shares have gained +39.3% over the last six months against the Zacks Computer Software industry’s gain of +11.8%. The Zacks analyst believes that Oracle is gaining from ongoing momentum across its cloud business, driven by solid adoption of data cloud solutions, Enterprise Resource Planning (ERP) and Autonomous Database offerings.
Further, strong uptake of cloud-based solutions, comprising NetSuite ERP and Fusion ERP, bodes well. Solid demand for the Oracle Dedicated Region Cloud@Customer supported by ML is also anticipated to drive the top line. However, increased spending on product enhancements amid stiff competition in the cloud market is likely to limit margin expansion.
Shares of FedEx have gained +19.6% in the past three months against the Zacks Air Freight and Cargo industry’s gain of +27%. The Zacks analyst believes that FedEx is benefiting significantly from the coronavirus-driven rise in e-commerce demand.
Further, higher Ground revenues are boosting the company’s top line. This makes the company’s acquisition of Chicago-based e-commerce platform, ShopRunner, a prudent move. However, escalating operating expenses pose a threat to the company’s bottom line. High capital expenditures may further impede bottom-line growth.
Other noteworthy reports we are featuring today include Freeport-McMoRan (FCX), MetLife (MET) and General Dynamics (GD).
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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>>>