Wednesday, November 1, 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), Booking Holdings Inc. (BKNG) and The Charles Schwab Corporation (SCHW). 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 Oracle have gained +28.4% over the year-to-date period against the Zacks Computer - Software industry’s gain of +38.7%. The company is benefiting from the ongoing momentum across its cloud business, driven by the strong uptake of Oracle Cloud Infrastructure and Autonomous Database offerings.

Solid adoption of cloud-based applications, comprising NetSuite Enterprise Resource Planning (ERP) and Fusion ERP bodes well. Oracle’s Gen 2 Cloud is delivering better performance at a lower cost due to high bandwidth and low-latency RDMA networks. Partnerships with VMWare and Microsoft is helping Oracle win new clientele.

ORCL is launching a generative AI cloud service for enterprise customers. Its share buybacks and dividend policy are noteworthy. However, higher spending on product enhancements, especially toward the cloud platform, amid increasing competition in the cloud domain is likely to limit margin expansion.

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

Booking Holdings shares have outperformed the Zacks Internet - Commerce industry over the year-to-date period (+38.4% vs. +34.6%).  The company is benefiting from a substantial improvement in booking trends driven by growing demand for travel. This, in, turn, is helping lower cancellation rates.

Booking Holdings expects room night growth to increase at a low double-digit rate on a year-on-year basis in the third quarter. Solid growth in domestic bookings is driving growth. The company is experiencing solid momentum in international regions, which is a positive. Strong growth in rental cars, airline ticket units and booked room nights is another positive.

Solid momentum across the agency, merchant, advertising and other businesses is a tailwind. Further, strengthening alternative accommodation business and flight capabilities are major positives. However, intensifying competition is a headwind.

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

Shares of Charles Schwab have outperformed the Zacks Financial - Investment Bank industry over the past six months (+4.8% vs. -4.4%). The company’s inorganic growth efforts, expenses are expected to remain elevated, thus hurting the bottom line to an extent.

Schwab’s trading revenues are expected to be under pressure in the near term amid the uncertain market conditions. Nevertheless, Schwab's acquisitions, likely to be earnings accretive, have reinforced its position as a leading brokerage player.

Offering commission-free trading has led to a rise in client assets and brokerage accounts. Amid high interest rates, margins will likely grow.

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

Other noteworthy reports we are featuring today include Palo Alto Networks, Inc. (PANW), Chipotle Mexican Grill, Inc. (CMG) and Phillips 66 (PSX).

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>>>