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The Zacks Analyst Blog Oracle, Micron Technology, Medtronic and The Cato

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For Immediate Releases

Chicago, IL – November 11, 2024 – 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 including Oracle Corp. (ORCL - Free Report) , Micron Technology, Inc. (MU - Free Report) , Medtronic plc (MDT - Free Report) and The Cato Corp. (CATO - Free Report) .

 Here are highlights from Monday’s Analyst Blog:

Top Analyst Reports for Oracle, Micron and Medtronic

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 Corp., Micron Technology, Inc. and Medtronic plc, as well as a micro-cap stock The Cato Corp.  The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.

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 >>>

Oracle’s shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+78.9% vs. +18.8%). The company’s stock hit record high of $160.52 a share following strong fiscal Q1 2025 results, driven by solid adoption of strategic cloud applications, autonomous database offerings and Oracle Cloud Infrastructure and recovery in cloud revenue growth.

ORCL’s continued investment in cloud infrastructure positions it well for sustained growth in the dynamic software industry. The recent partnership with Amazon for Oracle Database@AWS and general availability of Oracle Database@Google bodes well. Oracle’s Gen 2 Cloud is driving AI clientele. Its share buybacks and dividend policy are noteworthy.

The Zacks analyst expect fiscal 2025 net sales to grow 8.7% from fiscal 2024. 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 >>>)

Shares of Micron Technology have outperformed the Zacks Computer - Integrated Systems industry over the year-to-date period (+33.3% vs. +18.1%). The company is gaining from improved market conditions, strong sales executions and robust growth across multiple business units. The positive impact of inventory improvement in the data center and stabilization in other end markets, such as automotive, industrial and others, is adding to top-line growth.

Micron expects the pricing of DRAM and NAND chips to surge next year, which will boost its revenues. The pricing benefits should mainly be driven by the high demand for AI servers, which are causing a scarcity in the availability of DRAM and NAND supply.

Also, 5G adoption in the Internet of Things devices and wireless infrastructure is expected to spur demand for memory and storage. However, the United States and China’s tit-for-tat trade war is a major threat to the company.

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

Medtronic’s shares have gained +9.7% over the year-to-date period against the Zacks Medical - Products industry’s gain of +15.0%. The company is strategically expanding its global presence to address the unmet demand for advanced medical devices. Within Cardiovascular, Medtronic is gaining market share, banking on product launches in CRM and Structural Heart.

Hypertension has brought up multibillion-dollar opportunities for MDT. In MedSurg, Medtronic is scaling the production of Hugo RAS. The Surgical and Neuroscience portfolios continues to contribute positively. Further, the company’s Pacing business continued to drive strong growth banking on strong global growth of its Micra leadless pacemaker.

Innovations and market expansion efforts are helping it offset the impact of the inflation and supply disruptions. Medtronic’s strong liquidity position should allow it to meet its near-term debt obligations. All these factors support our bullish stance on the stock.

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

Shares of Cato have gained +2.5% over the past year period against the Zacks Retail - Apparel and Shoes industry’s gain of +26.6%. This microcap company with market capitalization of $129.79 million have strong financial position, with $30.8 million in cash and $69.9 million in working capital, enhances its operational stability and ability to invest in future growth.

Improved cost control, with a 7% reduction in SG&A expenses, has bolstered profitability, and net income nearly doubled to $11.1 million for the first half of 2024. The company's disciplined inventory management minimizes markdown risk, preserving margins. Cato’s consistent dividend payments underscore its financial health. Additionally, it is well-positioned to benefit from expected growth in the global apparel market.

However, challenges persist with an 8% sales decline due to store closures, weak e-commerce performance (less than 5% of total sales) and inflationary pressures affecting consumer spending. Cato’s reliance on physical stores and exposure to economic cycles further heighten risks.

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

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.

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