- 31 декабря 2018, 19:06
- Zacks Investment Research
Monday, December 31, 2018
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 Alphabet (GOOGL), Boeing (BA) and Salesforce (CRM). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Buy-ranked Alphabet’s shares have outperformed the Zacks Internet Services industry on a year-to-date basis (the stock is down -0.7% vs. a -25.1% decline for the industry). Alphabet's strengthening cloud unit is aiding substantial revenue growth.
The Zacks analyst thinks the growing momentum of Google Cloud and expanding data centers will continue to bolster the company’s presence in the cloud space. Also, major updates in its search segment are enhancing search results which is a tailwind. The company has shown good execution to date, more or less maintaining its dominant share in a competitive search market.
Additionally, Google’s strong focus on the innovation of its AI techniques and Android OS along with growing presence in the home automation space are driving its top-line growth further. However, the company’s growing litigation issues might hurt its profitability. Also it's increased spending on consumer gadgets, YouTube video app and cloud computing services remain concerns. Rising competition in the online ad market is a risk.
Shares of Buy-ranked Boeing have gained +7.3% over the past year, outperforming the Zacks Aerospace & Defense industry, which declined -9% during the same time period. The Zacks analyst emphasizes that the company is the largest aircraft manufacturer in the world in terms of revenues, orders and deliveries.
The company’s 20-year market outlook forecasts commercial jetliner demand to increase by 4.1%, with single-aisle jets being the major driver behind this demand growth. Boeing expects the commercial fleet to be fueled by sustained annual growth in commercial passenger traffic along with a big wave of retiring, old planes.
Boeing’s strong balance sheet and cash flows provide financial flexibility in matters of incremental dividend, ongoing share repurchases and earnings accretive acquisitions. However, this aerospace giant may face competitive challenges if new manufacturers like China enters the commercial jet space. Engine-related issues pertaining to its 787 fleet may also hurt company's growth.
Buy-ranked Salesforce’s shares have gained +31.8% year to date, outperforming the Zacks Computer Software industry, which has gained +12% over the same period. The Zacks analyst thinks Salesforce is benefiting from strong growth across its product portfolio.
Rapid adoption of its diverse cloud offerings given the growing demand for digital transformation remains the key catalyst. Strengthening relationships with cloud companies like Amazon, Google and IBM are a positive. Additionally, strategic acquisitions like MuleSoft, Datorama and Cloudcraze is helping it deliver strong growth. Salesforce is on track to achieve $21-$23 billion in annual revenues by fiscal 2022.
Nevertheless, stiff competition from Oracle and Microsoft is a concern. Currency fluctuations remain a key headwind. Besides, increasing investments for international expansions and data centers is an overhang on near-term profitability.
Other noteworthy reports we are featuring today include Union Pacific (UNP), United Technologies (UTX) and Charter Communications (CHTR).
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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 Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Per the Zacks analyst, stronger aerospace and commercial building sales as well as restructuring moves will boost United Technologies' near-term results. However, rising cost remains a major drag.
Per the Zacks analyst, improving demand across most of the end-markets, cost cutting efforts and investment in digital initiatives will boost Caterpillar's results.
Per the Zacks analyst, V.F. Corp's Vans brand is displaying strength with double-digit growth across all regions, channels and product categories.
Per the Zacks analyst, Ventas' diversified portfolio and life science real estate investments augur well for growth.
The Zacks analyst thinks Veeva Systems continues to benefit from its flagship Vault platform.
While Cenovus' strong focus on the low-cost Christina Lake oil sands projects will create long-term value for shareholders, the Zacks analyst is worried over the high debt burden.
Per the Zacks analyst, Mohawk's endeavor to pursue numerous acquisitions to broaden its geographic presence and product portfolio are encouraging.
Per the Zacks analyst, subscriber growth in residential and commercial Internet services is aiding Charter's progress. Moreover, wireless initiatives like the Comcast collaboration are a positive.
Per the Zacks analyst, Sherwin-Williams should benefit from synergies of the Valspar acquisition and its focus on growth through expansion of retail operations.
Per the Zacks analyst, Boston Properties' disciplined capital-recycling strategy will optimize its portfolio. Further, new development projects will likely generate strong returns when they stabilize.
The Zacks analyst is concerned about the high operating expenses which are hurting its bottom line. High debt levels are also worrisome.
Per the Zacks analyst, Chubb's rising expenses, due to higher loss and loss expenses, policy acquisition costs plus administrative expenses, will continue to restrict operating margin expansion.
Per the Zacks analyst, Methanex is exposed to a volatile methanol pricing environment due to new capacity ramp ups. Also, production outages are affecting its operations.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
United Technologies Corporation (UTX): Free Stock Analysis Report
Union Pacific Corporation (UNP): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
salesforce.com, inc. (CRM): Free Stock Analysis Report
Charter Communications, Inc. (CHTR): Free Stock Analysis Report
The Boeing Company (BA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research