Today's Must Read
Oracle (ORCL) Benefits from Strong Uptake of Cloud Solutions
EV Push & Strategic Collaborations to Drive Toyota (TM)
Wednesday, August 25, 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 Comcast Corporation (CMCSA), Oracle Corporation (ORCL), and Toyota Motor Corporation (TM). 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 Comcast have outperformed the Zacks Cable Television industry over the past year (+37.3% vs. +30.4%). The Zacks analyst believes that growing high-speed Internet user base, solid demand for Xfinity X1 and Flex services and the newly launched Peacock ad-supported streaming service are the key catalysts for growth for Comcast.
Its strategy to provide high-speed Internet at an affordable price plays a pivotal role in providing connectivity and improving customer experience. The pandemic-induced increased media consumption, and the work-from-home and online-learning wave bode well for Comcast’s Internet business. It, however, suffers from video-subscriber attrition due to cord cutting. A leveraged balance sheet remains another major concern.
Oracle shares have gained +37.9% over the last six months against the Zacks Computer Software industry’s gain of +29.6%. The Zacks analyst believes that Oracle’s growing cloud business and the latest autonomous database is expected to boost its competitive position in the long term.
Solid demand for the Oracle Dedicated Region Cloud@Customer is also anticipated to drive the top line. Oracle’s share buybacks and dividend policy is noteworthy. Increased spending, however, on product enhancements amid stiff competition in the cloud market is likely to limit margin expansion, in the near term.
Shares of Toyota have gained +12.2% in the year to date period against the Zacks Foreign Automotive industry’s gain of +5.7%. The Zacks analyst believes that Toyota’s focus on developing electric and driverless cars is likely to boost revenues in the quarters ahead.
Toyota aims to generate 40% of its global sales from EVs by 2025 and 70%, by 2030. Strategic collaborations with Subaru and Mazda are expected to support its e-mobility goals. The company’s efforts to develop autonomous car technology also bodes well for the long term. To that end, it is signing collaboration agreements with the likes of Uber and Pony.ai.
Other noteworthy reports we are featuring today include Fiserv, Inc. (FISV), ConocoPhillips (COP) and Hilton Worldwide Holdings Inc. (HLT).
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>>>