Monday, January 24, 2022
Zacks Research Daily presents the best research results of our analyst team. Today’s Research Daily features new research reports on 16 major stocks, including Microsoft Corporation (MSFT), Visa Inc. (V), and Cisco Systems, Inc. (CSCO). These research reports were selected from approximately 70 reports published by our analyst team today.
You see all research reports now here >>>
Shares of Microsoft surpassed the S&P 500 last year ( +30.1% vs. +15.9%) on the back of momentum on its Azure cloud platform.
The Zacks analyst noted that the stock has been under pressure recently due to widespread market-wide weakness and anxiety around its acquisition of Activision Blizzard, but the company’s long-term outlook remains very attractive.
Continuing remote work and adoption of the hybrid work model boosts Teams user growth. The solid use of the new Xbox consoles also helps the performance of the gaming segment. Microsoft is also witnessing the growth of the user base of its various applications including the Microsoft 365 suite, Dynamics and Power Platform. Increased spending on Azure enhancements and stiff competition in cloud space, however, are likely to break margins.
(You can do it read the full Microsoft research report here >>>)
Visa the shares have lost -17.4% over the past six months against Zacks Financial Transaction Services industry loss of -26.5%, however, things seem to be improving for it. The Zacks analyst believes many buyouts and alliances have paved the way for Visa’s long -term growth. Technology investments have strengthened Visa’s position in the payments market.
Coronavirus vaccine launches and the gradual revival of consumer confidence will continue to drive spending, boosting business volume. Given its strong monetary position, the company remains committed to boosting its shareholder value. However, high operating costs and client ramped-up incentives, are likely to weigh on margins. The decline in Visa Cash Volume from Asia Pacific and Europe is worrying.
(You can do it read the full Visa research report here >>>)
Shares of Cisco gained +3.4% in the last three months against Zacks Computer Networking’s industry gain of +3.6%. Partial shortages and ongoing supply chain issues are expected to continue in the second half of fiscal 2022 and drive up costs. This is likely to reduce revenues and expand margins.
The Zacks analyst, however, believes Cisco is benefiting from strength in its product portfolio and momentum in product order growth. Webscale business vitality and solid use of solution changes is a major tailwind. A healthy acquisition of identity and access, advanced threat and unified security threat management solutions amid high Internet traffic growth is another catalyst for growth.
(You can do it read the full Cisco research report here >>>)
Other notable reports we feature today include Berkshire Hathaway Inc. (BRK.B), Eli Lilly and Company (LLY) at Thermo Fisher Scientific Inc. (TMO).
Sheraz Mian
Director of Research
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-known consolidated income expert. He is frequently quoted in print and electronic media and publishes weekly Revenue Trends at Revenue Preview reports. If you would like an email notification whenever Sheraz publishes a new article, please click here >>>
Must Read Now
Microsoft’s Cloud and Office 365 Strength Aid (MSFT) adoption
Visa Banks (V) on Renewed Agreements, Rising Costs Hurt
Acquired by Cisco (CSCO) From Security Products and Strategic Deals
Featured Reports
Solid Insurance Business Aid Berkshire (BRK.B), Cat Loss Ail
According to the Zacks analyst, Berkshire could grow into a stable insurance business that drives profits and generates maximum equity returns.
Eli Lilly (LLY) is proud of the Solid Diabetes and Alzheimer’s Pipeline
Lilly recently submitted regulatory applications for tirzepatide for type II diabetes and donanemab for early Alzheimer’s disease, according to Zacks analysts.
COVID-19 Test Demand Aid Thermo Fisher (TMO), Forex Woes Ail
The Zacks analyst was impressed with Thermo Fisher who has witnessed strong testing demand for COVID-19 around the world in recent times along with the influx of new virus variants.
New Drugs Fuel Novartis (NVS), Generic Competition A Headwind
According to the Zacks analyst, Cosentyx and Entresto along with Zolgensma and Kesimpta are strengthening Novartis. However, the generic business remains weak.
Buying, Helping Morgan Stanley (MS) Restructuring Amid Low Rates
According to the Zacks analyst, Morgan Stanley’s inorganic growth and focus on fewer businesses relying on capital-markets are likely to continue to support the top line of growth amid relatively lower rates.
Fiserv Benefits (FISV) From Acquisitions amid Large Debt
The Zacks analyst admired Fiserv’s strategy of expanding its client base and enhancing its product portfolio with the help of acquisitions.
Beer Business to Strengthen Constellation Brands’ (STZ) Feat
According to the Zacks analyst, Constellation Brands is gaining strength in the beer business with robust consumer demand and shares the advantages for its iconic brands, specifically the Model Especial and Corona Extra.
New Upgrades
Loan Variation, Rising Deposit Aid Signature Bank (SBNY)
According to the Zacks analyst, Signature Bank benefits from the diversification of lending verticals. Rising deposits, supported by its Signet platform, offer a source of funding and revenue growth.
Loans, Income Aid Payments Commerce Bancshares (CBSH) Income
According to the Zacks analyst, stable loans and deposit balances, efforts to boost fee income and solid balances will help Commerce Bancshares ’top line despite the relatively low interest rate backdrop.
High Quality Eagle Ford Acreage to Help Magnolia (MGY)
The Zacks analyst believes the high-quality acreage of Magnolia Oil and Gas at Eagle Ford’s core gives it an attractive economy, industry-leading break evens, and quick payouts.
New Downgrades
Strict Regulations, Unplanned Destruction Hurts FirstEnergy (FE)
According to the Zacks analyst, legal requirements will hurt FirstEnergy’s profitability and unplanned outages could create operational problems.
Higher Input and Production Costs Hurt Kronos Worldwide (KRO)
According to Zacks analysts, rising raw material costs due to disruptions in global supply chains will weigh heavily on the company’s bottom line. It also faces headwinds from higher production costs.
Higher Costs and Supply Chain Issues, Hurt US Silica (SLCA)
The Zacks analyst is concerned that supply-chain challenges could hurt the company’s performance. Higher logistics and natural gas costs could also affect its results.
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Microsoft Corporation (MSFT): Free Stock Analysis Report
Visa Inc. (V): Free Stock Analysis Report
Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
Eli Lilly and Company (LLY): Free Stock Analysis Report
Thermo Fisher Scientific Inc. (TMO): Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report
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