Top Stock Research Reports For Microsoft, UPS, Alibaba & Others
Zacks Investment Research | Jun 02, 2017 01:16AM ET
Friday June 2, 2017
The Zacks Research Daily presents the best research output of our analyst team. Today's version features new research reports on 16 major stocks, including Microsoft (MSFT), United Parcel (UPS) and Alibaba (NYSE:BABA).These research reports have been hand-picked from the roughly 70 reports published by our analyst team today. You can see today’s research reports here >>>
Microsoft shares lagged the Zacks Tech sector through the fall, but have led the way over the last six months (up +20.3% versus +16.5%) on greater appreciation for the company's reorganization and repositioning. The Zacks analyst stress that Microsoft is benefiting from continuing enterprise strength, strong Office 365 adoption and robust penetration of Azure (the company's cloud offering). Further, the addition of LinkedIn (NYSE:LNKD) has improved the company's presence in the social media market. The recently announced Dies acquisition and investment in Flipkart are other positives. All in all, the company has emerged as a leader in the cloud space that promises momentum on a number of fronts. (You can) .
Shares of United Parcel gained +4.4% in the last one year, underperforming the Zacks Transportation-Air Freight industry’s gain of 7.4% in the period. Shares of UPS have lagged those of rival FedEx (NYSE:FDX), which have gained 21.1% in the same time span, by a substantial margin. United Parcel is still troubled by headwinds like higher costs and foreign exchange-related issues. But the Zacks analyst likes the company's efforts to reward shareholders. To this end, it hiked its quarterly dividend earlier this year. Moreover, United Parcel Service (NYSE:UPS)'s expansion-related efforts raise optimism about the stock. (You can ) .
Alibaba shares have outperformed the broader market as well as the peer e-commerce space over the last one year (it is up more than +61.9%), with the trend expected to remain in place given continued growth in its core e-commerce business and growing cloud computing services. The company’s fiscal fourth-quarter revenues beat expectations while earnings fell short. The Zacks analyst likes the company’s dominance in China's mobile commerce market, efforts to develop new products, international growth opportunities, strong financial position and growing cloud computing services. On the flip side, the need for continued infrastructure investments, growing competition and increasing competition from Tencent Holdings and Baidu remain major overhangs. (You can ) .
Other noteworthy reports we are featuring today include Goldman Sachs (GS), Aflac (AFL) and Nike (NYSE:NKE).
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Sheraz Mian
Director of Research
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
Today's Must Read/h6
Featured Reports/h6
The Zacks analyst believes NRG Energy's ongoing cost savings will boost its margin, but rising competition in the wholesale markets could have an adverse impact on performance.
The covering analyst thinks the buyout of small multi-price point retail stores will boost Dollar General's sales.
Though risks persist, the Zacks analyst believes that Palo Alto Networks' consistent focus on product refreshes and strategic acquisitions will boost revenues over the long run.
The covering analyst believes that Lam's exposure to memory manufacturers (a segment with multi-year growth prospects), and opportunity in logic and foundry segments are positives.
The Zacks analyst is concerned about Ecolab's lackluster performance in the Global Energy segment over last few quarters.
The Zacks analyst expects Deere's Wirtgen buy to expand its North American centric construction business to a global scale.
General Mills has been struggling because of the shift in consumer preference toward natural and organic food. Per the Zacks analyst, solid restructuring savings is making up for slower revenue growth.
The Zacks analyst believes NRG Energy's ongoing cost savings will boost its margin, but rising competition in the wholesale markets could have an adverse impact on performance.
The covering analyst thinks the buyout of small multi-price point retail stores will boost Dollar General's sales.
Though risks persist, the Zacks analyst believes that Palo Alto Networks' consistent focus on product refreshes and strategic acquisitions will boost revenues over the long run.
The covering analyst believes that Lam's exposure to memory manufacturers (a segment with multi-year growth prospects), and opportunity in logic and foundry segments are positives.
The Zacks analyst is concerned about Ecolab's lackluster performance in the Global Energy segment over last few quarters.
The Zacks analyst expects Deere's Wirtgen buy to expand its North American centric construction business to a global scale.
General Mills has been struggling because of the shift in consumer preference toward natural and organic food. Per the Zacks analyst, solid restructuring savings is making up for slower revenue growth.
New Upgrades/h6
The Zacks analyst thinks ongoing integration of Sargent will boost RBC Bearings' near-term earnings, while rise in cash flows would likely lower debt burden in the quarters ahead.
According to the covering analyst, Aflac's emphasis on sale of third-sector products, pull back of first-sector products and launch of new products will drive growth.
Per the Zacks analyst, Hill-Rom is growing on its recent product launch of its surgical beds and is expected to be on a solid growth trail in the near term. Its raised 2017 view also buoys optimism.
The Zacks analyst thinks ongoing integration of Sargent will boost RBC Bearings' near-term earnings, while rise in cash flows would likely lower debt burden in the quarters ahead.
According to the covering analyst, Aflac's emphasis on sale of third-sector products, pull back of first-sector products and launch of new products will drive growth.
Per the Zacks analyst, Hill-Rom is growing on its recent product launch of its surgical beds and is expected to be on a solid growth trail in the near term. Its raised 2017 view also buoys optimism.
New Downgrades/h6
Per the Zacks analyst, Zumiez continues to battle soft mall traffic and shifting consumer spending pattern. The company's soft first-quarter results compelled it to issue a bleak second-quarter view.
As per the covering analyst, strict regulations and legal issues remain a concern for Goldman. Further, challenging environment depicting lower client activity levels add to the woes.
Per the Zacks analyst, Nike's top line is facing stiff competition over its basketball shoes and a tough retail backdrop. These factors also led to a soft sales outlook for fiscal fourth quarter.
Per the Zacks analyst, Zumiez continues to battle soft mall traffic and shifting consumer spending pattern. The company's soft first-quarter results compelled it to issue a bleak second-quarter view.
As per the covering analyst, strict regulations and legal issues remain a concern for Goldman. Further, challenging environment depicting lower client activity levels add to the woes.
Per the Zacks analyst, Nike's top line is facing stiff competition over its basketball shoes and a tough retail backdrop. These factors also led to a soft sales outlook for fiscal fourth quarter.
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