Monday, August 21, 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 Amazon.com, Inc. (AMZN), Cisco Systems, Inc. (CSCO) and The Southern Company (SO). 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 >>>

Amazon.com shares have outperformed the Zacks Internet - Commerce industry over the year-to-date period (+58.6% vs. +35.6%). The company’s second quarter results were driven by Prime and AWS momentum. Strengthening AWS services portfolio and its growing adoption rate contributed well. Ultrafast delivery services and expanding content portfolio were beneficial.

Strengthening relationship with third-party sellers was a positive. Robust advertising business contributed well. Improving Alexa skills along with robust smart home products offerings were tailwinds. Amazon’s strong global presence and solid momentum among the small and medium businesses remain other positives.

Growing capabilities in grocery, pharmacy, healthcare and autonomous driving are other positives. Also, deepening focus on generative AI is a major tailwind. However, rising inflationary pressure remains a concern.

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

Shares of Cisco Systems have modestly outperformed the Zacks Computer - Networking industry over the year-to-date period (+18.2% vs. +17.1%). The company is riding on the growing demand for its security, artificial intelligence and cloud products. Its security portfolio is benefiting from the launch of new data loss prevention, firewall and zero trust capabilities.

Zero Trust portfolio is riding on strong demand for its Duo offering. Optimized application experience is benefiting from strong demand for ThousandEyes. Its investments across security business, focusing on cloud-based and AI-driven offerings, is expected to drive growth.

Expanding growth opportunities for low-power-consuming technologies, including IoT, Silicon One and Power over Ethernet bodes well for Cisco. Acquisitions including Lightspin Technologies, Smartlook and Armorblox is expected to benefit top-line growth.

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

Shares of Southern Company have outperformed the Zacks Utility - Electric Power industry over the past six months (+6.0% vs. -3.4%). Leveraging the demographics of its operating territories, as in healthy population and job growth, the utility has gradually increased its customer base.

With good rate base growth and constructive regulation, the power supplier is expected to generate steady earnings and dividend growth in the coming years. However, its elevated leverage, along with continued timing and cost overrun issues over its Vogtle project, are major overhangs.

While the electric utility holding company’s debt-to-capitalization of 63.1% restricts financial flexibility, its $25-billion Vogtle nuclear plant has already exceeded budget and is years behind schedule. Therefore, Southern Company warrants a cautious stance from the investors.

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

Other noteworthy reports we are featuring today include Edwards Lifesciences Corporation (EW), Ross Stores, Inc. (ROST) and Devon Energy Corporation (DVN).

Director of Research

Sheraz Mian

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>>>