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Research Daily

Sheraz Mian

Top Stock Reports for Microsoft, Danaher & Raytheon Technologies


Trades from $3

Wednesday, September 21, 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 Microsoft Corporation (MSFT), Danaher Corporation (DHR) and Raytheon Technologies Corporation (RTX). 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 >>>

Microsoft shares have declined -18.3% over the past year against the Zacks Computer - Software industry’s decline of -25.6%, reflecting the dominance of its Azure cloud platform amid accelerated global digital transformation. That said, the company’s increasing spend on Azure enhancements amid stiff competition in the cloud space from Amazon is likely to dent margins.

Teams’ user growth is gaining from continuation of remote work and mainstream adoption of hybrid/flexible work model. Recovery in advertising and job market boosted LinkedIn and Search revenues. Solid uptake of new Xbox consoles is aiding the gaming segment performance.

The company is witnessing growth in user base of its different applications including Microsoft 365 suite, Dynamics and Power Platform. Microsoft expects Surface revenues to grow in the mid-teens range, driven by strong demand for premium devices.

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

Danaher shares have declined -14.2% over the past year against the Zacks Diversified Operations industry’s decline of -26.5%. Danaher’s diversified business structure allows it to mitigate risks in one end market with strength across the others. Danaher also stands to benefit from Danaher Business System (DBS), healthy rewards to its shareholders, buyout benefits and product innovation in the quarters ahead.

Also, solid traction of Danaher’s Life Sciences business, fueled by healthy demand for bioprocessing products, may drive its revenues in the quarters ahead. The company’s measures to reward its shareholders are encouraging.

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

Raytheon Technologies shares have outperformed the Zacks Aerospace - Defense Equipment industry over the past year (+2.3% vs. -3.6%). The company continues to receive ample orders for its combat-proven defense products from the Pentagon. A steady recovery in commercial air traffic has been boosting commercial OEM as well as commercial aftermarket sales for Raytheon in the recent times.

It achieved $80 million of incremental merger synergies in the second quarter and aims at achieving $335 million of incremental cost synergies during 2022. The stock holds a solid solvency position.

Yet, economic sanctions imposed by governments in response to Russia’s invasion in Ukraine might hurt Raytheon. A comparative analysis of its trailing 12-month Price/Book ratio reflects a relatively gloomy picture. Purchase order declines, with original equipment manufacturer customers delaying orders, pose a risk to the stock.

(You can read the full research report on Raytheon Technologies here >>>)

Other noteworthy reports we are featuring today include Stryker Corporation (SYK), ICICI Bank Limited (IBN), and Vale S.A. (VALE).

Sheraz Mian

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>>>

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