Top Analyst Reports for Oracle, Linde & Caterpillar



Wednesday, April 20, 2022

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 Oracle Corporation (ORCL), Linde plc (LIN), and Caterpillar Inc. (CAT). 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 >>>

Shares of

Oracle

have outperformed the Zacks Computer – Software industry over the past year (+3.2% vs. +2.7%). The Zacks analyst believes that the ongoing momentum across its cloud business, driven by the strong uptake of Oracle Cloud Infrastructure services and autonomous Database offerings. Solid adoption of cloud-based applications, comprising NetSuite Enterprise Resource Planning (ERP), Fusion ERP and Fusion Human Capital Management (HCM), bodes well. Solid demand for the Oracle Dedicated Region Cloud@Customer is anticipated to drive the top line.


Partnerships with Accenture and Microsoft is helping Oracle win new clientele. The company’s share buybacks and dividend policy are noteworthy. However, higher spending on product enhancements, especially toward the cloud platform, amid increasing competition in the cloud domain is likely to limit margin expansion.

(You can


read the full research report on Oracle here >>>


)


Linde

‘s shares have gained +14.4% over the past year against the Zacks Oil and Gas – Field Services industry’s gain of +34.2%. The company’s primary product is industrial gases including oxygen, which is used as life support in hospitals. Linde process gas like hydrogen is being utilized for clean fuels, while its high-purity and specialty gases are employed to manufacture electronics.


The Zacks analyst believes that with improving industrial productions worldwide, Linde is gaining on the back of recovering industrial gas demand. The company has long-term contracts with on-site customers backed by minimum purchase requirements, thereby securing stable cashflows. However, the cost of sales continues to increase, hurting the firm’s bottom line.

(You can


read the full research report on Linde here >>>


)

Shares of

Caterpillar

have outperformed the Zacks Manufacturing – Construction and Mining over the past year (+4.7% vs. +2.4%). Caterpillar’s backlog was a solid $23 billion at the end of 2021. This will drive its top line in the upcoming quarters. Strong demand in its end markets and savings from its restructuring actions might negate the impact of high material and labor costs and supply chain headwinds that is currently being faced by the company.


The Zacks analyst believes that the construction industries segment is expected to continue to benefit from the strength in residential construction and non-residential construction in the United States, as well as rising demand in other parts of the world. Meanwhile, demand from mining backed by higher commodity prices will aid the Resource Industries segment. A robust liquidity position and investments in expanding services and digital initiatives will drive growth.

(You can


read the full research report on Caterpillar here >>>


)

Other noteworthy reports we are featuring today include Salesforce, Inc. (CRM), Sony Group Corporation (SONY), and Vale S.A. (VALE).

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


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


Oracle (ORCL) Rides on Cloud Suite Adoption & Partnerships


Linde (LIN) to Gain on Contracts With On-Site Customers


Strong Demand to Aid Caterpillar (CAT) Amid Margin Pressures


Featured Reports


Digital Transformation and Acquisitions Aid Salesforce (CRM)


Per the Zacks analyst, Salesforce is benefiting from ongoing digital transformations and adoption of its cloud services. Moreover, strategic acquisitions like Slack and Tableau are positive.n


Brand Focus to Aid Sony (SONY) Amid G&NS Segment Weakness


While Sony’s focus on premium segment of branded products is helping it gain momentum, declining sales in the Game & Network Services (G&NS) segment is likely to dent margins, per the Zacks analyst.


Boston Scientific (BSX) MedSurg Arm Gains amid Stiff Rivalry


The Zacks analyst is impressed with Boston Scientific registering faster recovery in recent times within MedSurg business than rest of its business arms. Yet, stiff rivalry remains a concern.


Synchrony’s (SYF) Strategic Buyouts and Collaborations Aid


Per the Zacks analyst, Synchrony’s strategic buyouts will boost its digital capabilities & diversify the business, leading to significant growth. Yet, a slowdown in the payment rate remains a concern.


Darden (DRI) Banks on Digital Initiatives, High Costs Ail


Per the Zacks analyst, Darden is likely to benefit from technological enhancements with reference to online ordering and To Go business. However, rise in labor and commodity costs are headwinds.


Investments Aid AES Corp (AES) Amid the Rising Inflation


Per the Zacks Analyst, increased investments in renewables bolsters AES Corporation earnings growth prospects. Yet, the rising inflation resulting in increased expenses remains a bottleneck.


Ionis’ (IONS) Dependence on Collaboration Revenues A Woe


Ionis’ RNA antisense technology has allowed it to form partnerships with leading drugmakers for development/marketing of its drugs. However, the recent pipeline setbacks concern the Zacks Analyst.


New Upgrades


SM Energy (SM) Banks On High-Grade Austin Chalk Inventory


The Zacks analyst is impressed by SM Energy’s high-quality inventory of the Austin Chalk play, leading to encouraging results due to additional wells drilled in the region.


Vale (VALE) Bets on Rising Iron Ore Prices & Cost Control


Per the Zacks analyst, high iron ore prices and demand, lower debt levels and focus on improving productivity and lowering costs will drive growth for Vale.


Pilgrim’s Pride (PPC) Gains From Robust U.S. Operations


Per the Zacks analyst, Pilgrim’s Pride is gaining from higher sales in the U.S. Operations for a while. During fourth-quarter 2021 sales in the region surged 27.9% year over year.


New Downgrades


High Fuel Costs Dent Allegiant Travel’s (ALGT) Prospects


The Zacks analyst is concerned with the escalating fuel costs, which are limiting the company’s bottom-line growth. Increase in labor expenses is also worrying.


Envestnet (ENV) Grapples With Expenses and High Debt


The Zacks Analyst believes that rising operating expenses are likely to weigh on Envestnet’s bottom line. Meanwhile, a debt-laden balance sheet remains a concern.


Supply Chain Woes to Hurt Bed Bath & Beyond’s (BBBY) Growth


Per the Zacks analyst, Bed Bath & Beyond has been witnessing supply-chain pressures, cost inflation and rising freight costs. The lack of available inventory is likely to persist in early fiscal 2022.


Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.


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