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The Zacks Analyst Blog Highlights: Apple, Cisco Systems, Oracle, HSBC and Amgen

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For Immediate Release

Chicago, IL – December 18, 2019 – 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: Apple (AAPL - Free Report) , Cisco Systems (CSCO - Free Report) , Oracle (ORCL - Free Report) , HSBC Holdings (HSBC - Free Report) and Amgen (AMGN - Free Report) .

Here are highlights from Tuesday’s Analyst Blog:

Top Analyst Reports for Apple, Cisco and Oracle

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 Apple, Cisco Systems and Oracle. 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 >>>

Apple’s shares have outperformed the S&P 500 year to date (+77.4% vs. +26%). The Zacks analyst believes that Apple is benefiting from continued momentum in the Services segment and improved iPhone sales, owing to the trade-in programs.

Non-iPhone devices continue to perform well, driven by strong demand for iPad, Apple Watch and AirPods. The company’s expanded portfolio that now includes new MacBook Pro, Apple Watch Series 5 and streaming service Apple TV+ is a key catalyst. Moreover, iPhone sales are expected to improve in China with the new iPhone models.

Nevertheless, uncertainties over the timeframe of the resolution of the U.S.-China trade war do not bode well for the company. Further, antitrust investigations, App Store-related lawsuits and Spotify’s complaint increase legal woes.

Shares of Cisco have lost -6.8% in the past three months against the Zacks Computer Networking industry’s fall of -6.6%. The Zacks analyst believes that Cisco is benefiting from solid security business.

Strong contribution from Infrastructure Platforms and applications is a positive. Moreover, order strength and improving traction of the subscription-based business model are tailwinds. Further, strengthening collaboration portfolio, which includes Webex Teams, bodes well. Additionally, acquisitions of Voicea and CloudCherry hold promise.

Cisco’s latest Silicon One strategy to enhance its network hardware business is expected to boost revenue base. However, weakness in service provider business in China remains a concern.

Further, stiff competition from Arista and Juniper in switching and routing verticals is likely to create pricing pressure and impact profitability. Also, increasing investments on product enhancements are likely to limit margin expansion at least in the near-term.

Oracle's shares have gained 2% over the past six months against the Zacks Computer Software industry's rise of 10.6%. The Zacks analyst believes that Oracle is benefiting from strong adoption of cloud-based solutions, comprising NetSuite ERP, Fusion ERP and Fusion HCM among others.

In fact, momentum witnessed in cloud services were a key upside to the company’s performance in the second quarter of fiscal 2020. Going ahead, the company is expected to reap benefits from rising adoption of SaaS.

Moreover, strong demand for the latest autonomous database supported by ML is likely to drive the top line. It will also provide a competitive edge against Amazon Web Services (AWS) in the Database-as-a-Service market.

However, stiff competition in the cloud market from dominant players is anticipated to put pressure on profitability. Further, lower hardware volumes are expected to hurt the top line. Additionally, integration risks from buyouts remain a concern.

Other noteworthy reports we are featuring today include HSBC Holdings (HSBC - Free Report) and Amgen (AMGN - Free Report) .

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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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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