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The Zacks Analyst Blog Highlights: Microsoft, Procter & Gamble, QUALCOMM, T-Mobile US and Automatic Data Processing

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For Immediate Release

Chicago, IL – January 05, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Microsoft Corporation (MSFT - Free Report) , The Procter & Gamble Company (PG - Free Report) , QUALCOMM Incorporated (QCOM - Free Report) , T-Mobile US, Inc. (TMUS - Free Report)  and Automatic Data Processing, Inc. (ADP - Free Report) .

Here are highlights from Monday’s Analyst Blog:

Top Analyst Reports for Microsoft, Procter & Gamble and Qualcomm

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, Procter & Gamble and Qualcomm. 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 shares have outperformed the S&P 500 over the past year (+39.9% vs. +17.7%). The Zacks analyst believes that Microsoft is benefiting from momentum in Azure, impressive Teams user growth triggered by coronavirus-led digital transformation, work-from-home, online learning wave and tele healthcare trends.

Solid uptake of Surface devices and Xbox Game Pass is expected to boost growth. Further, the company is gaining from the growing user base of its different applications including Microsoft 365 suite, and Dynamics. Additionally, it is well positioned to expand the total addressable market through acquisitions of GitHub and ZeniMax Media.

However, broad-based macroeconomic weakness in the job market and lower spend on advertising due to the coronavirus pandemic are likely to put pressure on LinkedIn and Search revenues. Also, delays in consulting business are anticipated to limit growth. 

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

Shares of Procter & Gamble have gained +14.5% in the last six months against the Zacks Soap and Cleaning Materials industry's gain of +12.6%. The Zacks analyst believes that the nature of Procter & Gamble's business led to increased consumer demand for its hand soaps, detergents and surface cleaning products during the pandemic.

The company's solid first-quarter fiscal 2021 earnings mark the continuation of its earnings surprise trend. Earnings and sales improved year over year in the reported quarter on gains from significant sales increase, related fixed cost leverage and ongoing productivity efforts.

Cost savings aided core currency-neutral gross and operating margin, which expanded 170 bps and 350 bps, respectively. Driven by the robust results, the company raised its outlook for fiscal 2021. However, currency headwinds are likely to affect results in fiscal 2021. Also, stiff competition remains a woe.

(You can read the full research report on Procter & Gamble here >>>)

Qualcomm's shares have gained +27.8% over the past three months against the Zacks Wireless Equipment industry's rise of +20.1%. The Zacks analyst believes that with the rollout of 5G technology, Qualcomm is benefiting from investments toward building a licensing program in mobile.

The company is focused on retaining its leadership in the 5G chipset market and mobile connectivity. It resolved a dispute with Huawei and inked a new long-term patent license agreement, which augurs well for long-term revenues.

Qualcomm launched low-priced 5G chips for the masses for a seamless transition to 5G while delivering low-power resilient multi-gigabit connectivity. However, lower handset shipments due to the COVID-19 pandemic remain a near-term headwind. Qualcomm is expected to face softness in demand from China.

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

Other noteworthy reports we are featuring today include T-Mobile US and Automatic Data Processing.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for "stay at home" technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

 

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