Today's Must Read
salesforce (CRM) Rides on Partnership Wins & Acquisitions
Buyout, Restructuring Aid Morgan Stanley (MS) Amid Low Rates
Tuesday, September 14, 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 Visa Inc. (V), salesforce.com, inc. (CRM), and Morgan Stanley (MS). 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 Visa have outperformed the Zacks Financial Transaction Services industry in the year to date period (+2.9% vs. -12.4%), with the Zacks analyst citing the Visa Europe acquisition, increasing business volumes, as well as a solid balance sheet as the reasons for the stock's outperformance.
A number of acquisitions and alliances have paved way for its long-term growth. The coronavirus vaccine development and the gradual revival of consumer confidence is likely to drive spending, thereby expanding business volumes. Visa remains committed to boost its shareholder value on the back of a sturdy cash position. High operating expenses have been stressing the operating margins though. Ramped-up client incentives are likely to dent the top line.
salesforce shares have gained +19.3% in the last six months against the Zacks Computer Software industry’s gain of +25.8%, however, things seem to be improving for it. The Zacks analyst believes that the company benefiting from a robust demand environment as customers are undergoing a major digital transformation.
Its diverse cloud offerings, clientele strength, strategic acquisitions and partnerships are key drivers. The company is to become a leader in enterprise team collaboration solution space on the back of its recent acquisition of Slack. This will also enable it to better compete with Microsoft’s Teams product. Stiff competition, unfavorable currency fluctuations along with increasing investments in international expansions and data centers are major concerns for the company.
Shares of Morgan Stanley have gained +13.7% in the last six months against the Zacks Investment Banking industry’s gain of +2.8%. The Zacks analyst believes that the company’s financials are likely to benefit from its focus on less capital-market dependent operations and opportunistic buyouts.
Robust capital deployment activities indicate a solid liquidity position. Uncertainty about the performance of the capital markets remains a major concern for Morgan Stanley. Persistently increasing expenses are likely to hurt the bottom line to an extent in the near term.
Other noteworthy reports we are featuring today include Chevron Corporation (CVX), Citigroup Inc. (C) and Applied Materials, Inc. (AMAT).
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>>>