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Research Daily

Tuesday, August 28, 2018

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), Intuit (INTU) and Regeneron Pharmaceuticals (REGN). 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 >>>

Oracle’s shares have underperformed the Zacks Computer Software industry so far this year, gaining +4.4% vs. +24.7%. However, Oracle is one of the largest enterprise-grade database, middleware and application software providers.

The company is benefiting from strong adoption of its cloud-based solutions. The Zacks analyst believes that the company’s growing cloud market share will continue to drive top-line growth in the long haul. The analyst notes that partnerships with the likes of Accenture are helping the company rapidly expand its cloud-base clientele.

Also, anticipated strong demand for the next-generation autonomous database supported by machine learning will boost competitive position against AWS. Nonetheless, stiff competition in the cloud is expected to hurt margins and will make revenue growth difficult.

Notably, Oracle has undergone structural changes. It no longer intends to break out its cloud revenues and does not provide any guidance on SaaS, Cloud PaaS and IaaS. This move is likely to enhance investor concern about the company's outlook.

(You can read the full research report on Oracle here >>>).

Buy-rated Intuit’s shares have outperformed the Zacks Computer Software industry over the last year, increasing +53.6% vs. a gain of +37.8%.  Intuit’s fiscal Q4 results were driven by impressive growth across its Small Business and Self-Employed, and Consumer Tax segments.

Intuit is benefiting from frequent product refreshes, which help it to gain customers. It witnessed solid growth in QuickBooks Online subscriber base. TurboTax Live offering also is likely to be a tailwind to the Consumer tax business.

Moreover, the company’s strategy of shifting its business to cloud-based subscription model will help generate more stable revenues over the long run. However, high costs and expenses remain a major concern.

Competition from companies like Microsoft also increases pricing pressure. Again, due to the business being seasonal, Intuit is exposed to significant operational risks.

(You can read the full research report on Intuit here >>>).

Buy-rated Regeneron’s shares have outperformed the Zacks Biomedical and Genetics industry year-to-date, gaining +3.3% vs. a decline of -4%. Regeneron’s second-quarter results were impressive as the company comfortably beat both earnings and sales estimates on the back of growth in Dupixent’s sales.

Dupixent uptake in the United States for moderate-to-severe atopic dermatitis was encouraging. The performance of Regeneron's key growth driver, Eylea, continues to be strong as well and the recent label expansion of Eylea in patients with wet age-related macular degeneration will further boost sales.

The company is also working to expand Dupixent’s label, which should diversify the company’s revenue base and reduce dependence on Eylea. Immuno-oncology candidate cemiplimab’s progress is promising as well and a potential approval for the treatment of cutaneous squamous cell carcinoma in October will be a significant boost for Regeneron.

(You can read the full research report on Regeneron here >>>).

Other noteworthy reports we are featuring today include Macy's (M), Restaurant Brands International (QSR) and Deere (DE).

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Senior Editor

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>>>

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