Today's Must Read
Robust Demand Aids Lockheed (LMT), F-35 program's Cost Hurts
Procedural Gain Aids Boston Scientific (BSX) amid Pandemic
Friday, July 2, 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 Oracle (ORCL), Lockheed Martin (LMT), and Boston Scientific (BSX). 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 >>>
Shares of Oracle have outperformed the Zacks Computer Software industry in the year-to-date period (+24% vs. +19.5%). The Zacks analyst believes that Oracle is benefitting from the ongoing momentum across its cloud business, on the back of strong uptake of Oracle Cloud Infrastructure (OCI) services and Autonomous Database offerings.
Further, healthy adoption of cloud-based applications, comprising NetSuite Enterprise Resource Planning (ERP), Fusion ERP and Fusion Human Capital Management (HCM) bodes well in the long run. However, increased spending on product enhancements amid stiff competition in the cloud market is likely to limit margin expansion, in the near term.
Lockheed Martin’s shares have gained +11.9% over the last six months against the Zacks Aerospace Defense industry’s gain of +19.3%. The Zacks analyst believes that expansionary U.S. budgetary provisions will boost company’s business.
Further, its F-35 program continues to be a key growth program for the company’s Aeronautics business segments, having delivered 17 production aircraft. Lockheed has a stable liquidity position. However, forced cost reduction initiatives for F-35 program might hamper its operating results in future. Moreover, the company is facing performance issues in some of its products, which in turn may weigh on its results.
Shares of Boston Scientific have gained +11.1% in the past three months against the Zacks Medical Products industry’s gain of +2.3%. The Zacks analyst believes that accretive acquisitions and significant progress in the company’s restructuring initiatives buoys optimism.
Further, Boston Scientific is gaining traction in the emerging markets, particularly in the BRIC zone. Meanwhile, the company expects a steady recovery from the pandemic with lesser impact from COVID-19 in the second quarter and more normal procedure levels in second half of 2021. Also, the company’s second-quarter view and the narrowed 2021 guidance are impressive.
Other noteworthy reports we are featuring today include Regeneron Pharmaceuticals (REGN), Roper Technologies (ROP) and Eni (E).
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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>>>