Monday, January 22, 2024

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 Alphabet Inc. (GOOGL), Salesforce, Inc. (CRM) and Comcast Corporation (CMCSA). 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 >>>

Alphabet shares have matched the Zacks Internet - Services industry's performance over the past year (+46.7% vs. +46.2%), but outperformed the Zacks Tech sector (+42.6%) and the S&P 500 index (+20.8%). The company’s strong cloud division is aiding substantial revenue growth. Moreover, expanding data centers will continue to bolster its presence in the cloud space. Further, major updates in its search segment are enhancing the search results.

Also, strong focus on innovation of AI techniques and the home automation space should aid business growth in the long term. Further, its deepening focus on wearables category remains a tailwind. Alphabet’s expanding presence in the autonomous driving space is contributing well.

Its growing efforts to gain foothold in the healthcare industry are other positives. However, sluggishness in the company’s Network advertisement business remains a headwind. Additionally, its growing litigation issues and increasing expenses are concerns.

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

Shares of Salesforce have outperformed the Zacks Computer - Software industry over the past year (+80.2% vs. +57.6%). The company is benefiting from a robust demand environment as customers are undergoing a major digital transformation. The company’s sustained focus on aligning products with customer needs is driving the top line.

Continued deal wins in the international market are another growth driver. The buyout of Slack has positioned the company as a leader in enterprise team collaboration and improved its competitive standing versus Microsoft Teams. Salesforce’s strategy of continuously expanding generative AI offerings will help the company tap the growing opportunities in the space.

However, stiff competition and unfavorable currency fluctuations are concerns. Also, the challenging macroeconomic environment could hurt its growth prospects.

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

Comcast shares have modestly outperformed the Zacks Cable Television industry over the past year (+10.7% vs. +9.0%). The company is benefiting from a growing wireless subscriber base as witnessed in the third quarter. Broadband user base increased in the reported quarter.

Comcast’s plan to transition to DOCSIS 4.0 is noteworthy. The technology will help the company expand much faster and at a lower cost compared with competitors. Recovery in the park and movie business bodes well for the company’s profitability. Its streaming service, Peacock, is a key catalyst in driving broadband sales. Strong free cash flow generation ability is noteworthy.

However, Comcast persistently suffers from video-subscriber attrition due to cord-cutting. Moreover, broadband prospects are suffering from increasing competition from fixed wireless as well as fiber. Additionally, a leveraged balance sheet is a major concern.

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

Other noteworthy reports we are featuring today include Colgate-Palmolive Company (CL), Baker Hughes Company (BKR) and American Water Works Company, Inc. (AWK).

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>>>