Today's Must Read
5G Forte, Customer Growth Aid Verizon (VZ) Amid Competition
Oracle (ORCL) Rides on Cloud Suite Adoption & Partnerships
Friday, January 28, 2022
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 Amazon.com, Inc. (AMZN), Verizon Communications Inc. (VZ), and Oracle Corp. (ORCL). 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 Amazon have underperformed the S&P 500 over the past year (-12.9% vs. +15%), however, things seem to be improving for it. The Zacks analyst believes that Amazon has been benefiting from its Prime program, delivery and logistic system in the e-commerce space. Strong adoption rate of AWS is aiding AMZN’s cloud dominance.
An expanding AWS services portfolio has helped Amazon gain momentum in the space. Further, robust Alexa skills and expanding smart home products portfolio are positives. Rising expenses associated with supply-chain constraints and labor supply shortages, however, remain concerns.
Verizon shares have lost -6.4% over the past six months against the Zacks Wireless National industry’s loss of -14.1%. Verizon operates in an intensely competitive wireless market in the United States, which impacts its profitability. Hefty expenses on promotions, lucrative discounts to attract customers as well as high auctioning expenses are expected to further stress margins.
The Zacks analyst, however, believes that Verizon is poised to benefit from rapid 5G adoption and fixed wireless broadband momentum. It currently covers more than 95 million people with 5G Ultra Wideband. Investment in 5G Ultra Wideband provides people with unmatched speed on their phones and other devices.
Shares of Oracle have lost -16.5% in the last three months against the Zacks Computer Software industry’s loss of -13.3%. Stiff competition, lawsuits and integration risks are likely to impact Oracle’s near-term profitability.
The Zacks analyst, however, believes that Oracle has been benefiting from the strong uptake of Oracle Cloud Infrastructure (OCI) services and Autonomous Database offerings. Healthy adoption of cloud-based applications, including NetSuite Enterprise Resource Planning (ERP), Fusion ERP and Fusion Human Capital Management (HCM) bodes well in the long term.
Other noteworthy reports we are featuring today include PepsiCo, Inc. (PEP) and NextEra Energy, Inc. (NEE).
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>>>