Wednesday, December 20, 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 Microsoft Corp. (MSFT), Booking Holdings Inc. (BKNG) and Bristol-Myers Squibb Co. (BMY). 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’s shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+57.0% vs. +56.5%). The company is riding on strong growth from Intelligent Cloud and Productivity and Business Processes. Intelligent Cloud revenues have been driven by growth in Azure and other cloud services.

Productivity and Business Processes revenues continues to increase due to strong adoption of Office 365 Commercial solutions. Continued momentum in the small and medium businesses and frontline worker offerings, as well as gain in revenue per user drove top-line growth.

However, More Personal Computing revenues are suffering from continued weakness in Windows and Devices businesses. Steady performance in Talent Solutions aided LinkedIn revenues. However, declining gaming revenues has been a headwind. Increasing spend on Azure enhancements amid stiff competition in the cloud space remains a concern.

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

Shares of Booking Holdings have outperformed the Zacks Internet - Commerce industry over the year-to-date period (+74.4% vs. +56.5%). The company is benefiting from substantial improvement in its booking trends. Growing demand for travel and solid momentum in booked room nights are driving growth in the gross bookings.

Further, strong global leisure travel demand is a plus. Furthermore, solid momentum across merchant, advertising and other businesses is a major positive. Additionally, strong growth in rental car and airline ticket units is acting as a tailwind. For 2023, the company expects more than 20% year-over-year growth in gross bookings.

Additionally, strengthening alternative accommodation business and flight capabilities are a positive. However, weakness in agency bookings is a headwind. Further, intensifying competition remains a major concern.

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

Shares of Bristol-Myers Squibb have underperformed the Zacks Medical - Biomedical and Genetics industry over the year-to-date period (-25.0% vs. -15.8%). The company’s performance in 2023 was disappointing. Growth in Opdivo and its new product portfolio (primarily Opdualag, Reblozyl and Zeposia) is being offset by declining revenues due to generic competition for Revlimid and Eliquis (outside the United States).

Nevertheless, the label expansion of Opdivo for first-line lung cancer, bladder cancer and gastric cancer continues to boost sales. The approval of drugs like Opdualag, Reblozyl, Breyanzi and Sotyktu diversifies its revenue base. The impending acquisition of Mirati Therapeutics will strengthen its oncology portfolio.

However, the company now expects its current new-product portfolio to generate $10 billion in revenues by 2026, which was earlier anticipated by 2025. Generic competition for key drugs will remain a headwind.

(You can read the full research report on Bristol-Myers Squibb here >>>)

Other noteworthy reports we are featuring today include Equifax Inc. (EFX) Bayer HubSpot, Inc. (HUBS) and First Solar, Inc. (FSLR).

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>>>