Back to top

Image: Bigstock

Top Research Reports for March 1, 2017

Read MoreHide Full Article

Wednesday, March 1, 2017

Today's Research Daily features new research reports on 16 major stocks, including Microsoft (MSFT - Free Report) , Canadian National (CNI - Free Report) and BP (BP - Free Report) .

Microsoft shares lagged the Zacks Tech sector through the fall, but have led the way over the last six months (up +10.9% versus +8.2%) on greater appreciation for the company's reorganization and repositioning. The Zacks analyst points to the company's continuing enterprise strength, benefits from the Office 365 subscription model, strong growth prospects of Azure and promising new products.

The acquisition of AI startup Maluuba is a big positive for the company given the growing demand for artificial intelligence techniques throughout the world. The recent announcement of Xbox Game Pass, a subscription-based gaming service, will help Microsoft to win market share from the likes of GameStop. All in all, the company has emerged as a leader in the cloud space that promises momentum on a number of fronts. (You can read the full research report on Microsoft here.)

Buy-rated Canadian National shares have done really well since the election (up +9.1%) and have also posted healthy gains last year, but failed to outperform the Zacks Rail industry which gained 19.7% over the same period. This was primarily due to coal related headwinds. However, fourth quarter earnings exceeded expectations, driven by lower costs, while revenues increased on a year-over-year basis.

The analyst likes this Buy-rated stock’s initiatives to reward investors as well as the C$2.5 billion 2017 capital investment plan. The plan complements its efforts to promote safety along with enhancing productivity. (You can read the full research report on Canadian National here.)

BP’s shares have gained 12.3% over the last one year, outperforming the Zacks categorized Oil & Gas-International Integrated industry which gained 9.9% over the same period, as well as rival Royal Dutch Shell. The analyst is enthused by its latest announcement, that it expects the upstream and downstream segments to contribute significant cash flows over the next five years. Cash flows from the upstream operation will likely be between $13 billion and $14 billion annually.

Moreover, the downstream operation is expected to add $9–$10 billion yearly cash flows. However, volatility in commodity prices remains a concern. Moreover, the trailing 12-month return on capital is not very encouraging. (You can read the full research report on BP here.)

Other noteworthy reports we are featuring today include Monsanto , Adobe (ADBE - Free Report) and Fastenal (FAST - Free Report) .

8 Stocks with Huge Profit Potential
Just released: Driverless Cars: Your Roadmap to Mega-Profits Today. In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>

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 >>>

Published in