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Research Daily

Thursday, September 28, 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 Corporation (ORCL), AbbVie Inc. (ABBV) and Lowe's Companies, Inc. (LOW). 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 shares have outperformed the Zacks Computer - Software industry over the past year (+71.6% vs. +38.3%) on the back of steady adoption of Gen 2 Cloud, Fusion and Autonomous Database despite slow cloud revenue growth.

Oracle’s Gen 2 Cloud is driving artificial intelligence (AI) clientele driven by better performance at a lower cost due to high bandwidth and low-latency RDMA networks. Partnerships with VMware and Microsoft to win new clientele. The company announced an extension of its collaboration with VMware to assist customers in modernizing the workloads by utilizing OCI.

ORCL is launching a generative AI cloud service for enterprise customers. Its share buybacks and dividend policy are noteworthy. However, stiff competition in the cloud market is slowing down the growth of Oracle’s expansion efforts in the competitive market.

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

Shares of AbbVie have gained +11.6% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +26.5%. The company has several new drugs in its portfolio with the potential to drive the top line and make up for lost Humira revenues.

Newer products, Skyrizi and Rinvoq, are performing extremely well, bolstered by approval in new indications, which should support top-line growth in the next few years. The company has several early/mid-stage candidates that have blockbuster potential. AbbVie expects several regulatory submissions and key data readouts in 2023.

However, the company faces several near-term headwinds like Humira’s loss of exclusivity, increasing competitive pressure on Imbruvica and economic pressure on Juvederm sales. Though revenues are expected to decline in 2023, AbbVie expects to return to robust sales growth in 2025.

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

Lowe's shares have outperformed the Zacks Building Products - Retail industry over the year-to-date period (+5.4% vs. +3.4%). The company remains well-positioned to capitalize on the demand for the home improvement market, backed by investments in technology and strength in the Pro business. Lowe's posted better-than-expected results during second-quarter fiscal 2023, wherein the top and bottom lines beat the Zacks Consensus Estimate.

Results benefited from strong margins stemming from gains from the Total Home strategy, a sturdy spring recovery and the execution of the Perpetual Productivity Improvement initiative. However, management expects revenues to be $87-$89 billion versus $97.1 billion delivered last fiscal.

(You can read the full research report on Lowe’s here >>>)

Other noteworthy reports we are featuring today include Roper Technologies, Inc. (ROP), Ecolab Inc. (ECL) and Motorola Solutions, Inc. (MSI).

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>>>

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