Wednesday, February 8, 2023

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 Corp. (ORCL), Lockheed Martin Corp. (LMT) and The TJX Companies, Inc. (TJX). 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 outperformed the Zacks Computer - Software industry over the past year (+5.2% vs. -14.2%). The company benefitted from strength in infrastructure and applications cloud businesses. Solid adoption of cloud-based applications, comprising NetSuite Enterprise Resource Planning (ERP), Fusion ERP and Fusion Human Capital Management (HCM), bodes well.

The Zacks analyst expect fiscal 2023 revenues to jump 13.6% over fiscal 2022. Solid demand for the Oracle Dedicated Region Cloud@Customer is anticipated to drive the top line. Oracle expects total cloud growth, including Cerner, to grow from 43% to 47% in USD for the next quarter. Partnerships with Accenture and Microsoft are helping Oracle win new clientele.

However, higher spending on product enhancements, especially toward the cloud platform, is likely to limit margin expansion. We expect fiscal 2023 non-GAAP operating expenses to jump 18.3% over fiscal 2022.

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

Shares of Lockheed Martin have outperformed the Zacks Aerospace - Defense industry over the past year (+18.7% vs. -8.1%). The company enjoys a consistent level of contract flows, and subsequent backlog growth bolsters its long-term revenue prospects. The company remains the largest U.S. defense contractor, with a steady inflow of orders from its leveraged presence in the Army, Air Force, Navy and IT programs.

Steady contract flows and subsequent backlog growth bolster its long-term revenue prospects. Budgetary provisions tend to boost its business. Yet strains between the U.S. and Turkey, as a result of the latter accepting Russian products, might hurt Lockheed's component supply from that country.

Lockheed is facing performance issues concerning some of its products, which, in turn, may hurt its results. Also, an uncertainty revolving around the possible sanction by China on Lockheed might impact the company.

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

Shares of The TJX Companies have outperformed the Zacks Retail - Discount Stores industry over the past year (+11.7% vs. +0.2%). The company’s off-price business model, strategic store locations, impressive brands and fashion products and supply-chain management have been working well. TJX is benefiting from its solid store and e-commerce growth efforts.

The company registered an improved pretax profit margin in the third quarter of fiscal 2023. Management is optimistic about its capabilities to provide impressive brands and gifts to its stores and online during the holiday season.

That being said, The TJX Companies has been grappling with increased freight costs. In addition, the company saw additional wage costs in the fiscal third quarter. Management is projecting nearly 130 basis points (bps) of incremental freight expense and 70 bps of wage costs for fiscal 2023.

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

Other noteworthy reports we are featuring today include Illinois Tool Works Inc. (ITW), Aflac Inc. (AFL) and Trane Technologies plc (TT).

Mark Vickery
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>>>