For Immediate Release
Chicago, IL – January 20, 2020 – 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 (MSFT - Free Report) , American Express (AXP - Free Report) , Fidelity National Information Services (FIS - Free Report) , Goldman Sachs (GS - Free Report) and Southern (SO - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Top Stock Analyst Reports for Microsoft, American Express and Others
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, American Express and Fidelity National Information Services. 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’s shares have outperformed the S&P 500 over the past year (+54.3% vs. +23.3%) and the Zacks analyst expects this momentum continuing on the back of a growing user base of its different applications like Office 365 commercial, Dynamics, Outlook mobile and Teams.
Moreover, Azure’s expanding customer base is a key catalyst. Microsoft’s gaming segment is performing well, primarily driven by a combination of Xbox Live, Game Pass subscriptions and Mixer, which are driving user engagement. Further, acquisitions like PlayFab and GitHub expand Microsoft’s total addressable market (TAM) and penetration. Additionally, latest contract wins from the Department of Defense remain notable.
However, projections of a moderating growth rate in commercial cloud gross margin, and OEM Pro and Windows commercial businesses is a headwind. Moreover, stiff competition from the likes of Google, Apple, and Sony is a woe.
Shares of American Express have gained +11.8% in the past three months against the Zacks Financial Miscellaneous Services industry's rise of +9.1%. The Zacks analyst believes that its expanding presence in the business-to-business market and investment in technology should drive long-term growth.
Its revenue growth is driven by a strong brand, continued efforts toward building business in new growth verticals, shift toward digital, focus on initiatives and a strong economy, which are driving consumer spending. Its strong capital position and disciplined capital management by way of share buyback and dividend payouts are impressive.
However, the company's reward expenses have been increasing over the past many quarters, which weigh on margins. Cost of card member services has been increasing over the years, indicating higher engagement level across its premium travel services.
Fidelity National Information Services’ shares have gained +11.3% over the past six months against the Financial Transaction Services industry's rise of +10%. The Zacks analyst believes that the company remains well positioned for growth backed by attractive core business with a recurring revenue model and several ongoing strategic initiatives.
Acquisition of Worldpay is likely to accelerate its growth by boosting presence in faster growing markets. Also, the deal will provide synergies of $700 million from revenue and cost savings over next three years. However, the company remains exposed to consolidation in the banking sector and significant competition from new entrants. Also, unsustainable capital deployment activities remain a concern.
Other noteworthy reports we are featuring today include Goldman Sachs and Southern.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.6% per year. So be sure to give these hand-picked 7 your immediate attention.
See 7 handpicked stocks now >>
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