Friday, January 28, 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 Amazon.com, Inc. (
AMZN
), Verizon Communications Inc. (
VZ
), and Oracle Corp. (
ORCL
). 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
Amazon
have underperformed the S&P 500 over the past year (-12.9% vs. +15%), however, things seem to be improving for it. The Zacks analyst believes that Amazon has been benefiting from its Prime program, delivery and logistic system in the e-commerce space. Strong adoption rate of AWS is aiding AMZN’s cloud dominance.
An expanding AWS services portfolio has helped Amazon gain momentum in the space. Further, robust Alexa skills and expanding smart home products portfolio are positives. Rising expenses associated with supply-chain constraints and labor supply shortages, however, remain concerns.
(You can
read the full research report on Amazon here >>>
)
Verizon
shares have lost -6.4% over the past six months against the Zacks Wireless National industry’s loss of -14.1%. Verizon operates in an intensely competitive wireless market in the United States, which impacts its profitability. Hefty expenses on promotions, lucrative discounts to attract customers as well as high auctioning expenses are expected to further stress margins.
The Zacks analyst, however, believes that Verizon is poised to benefit from rapid 5G adoption and fixed wireless broadband momentum. It currently covers more than 95 million people with 5G Ultra Wideband. Investment in 5G Ultra Wideband provides people with unmatched speed on their phones and other devices.
(You can
read the full research report on Verizon here >>>
)
Shares of
Oracle
have lost -16.5% in the last three months against the Zacks Computer Software industry’s loss of -13.3%. Stiff competition, lawsuits and integration risks are likely to impact Oracle’s near-term profitability.
The Zacks analyst, however, believes that Oracle has been benefiting from the strong uptake of Oracle Cloud Infrastructure (OCI) services and Autonomous Database offerings. Healthy adoption of cloud-based applications, including NetSuite Enterprise Resource Planning (ERP), Fusion ERP and Fusion Human Capital Management (HCM) bodes well in the long term.
(You can
read the full research report on Oracle here >>>
)
Other noteworthy reports we are featuring today include PepsiCo, Inc. (
PEP
)
and NextEra Energy, Inc. (
NEE
).
Mark Vickery
Senior Editor
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
Amazon (AMZN) Banks on Prime Momentum & Growing AWS Adoption
5G Forte, Customer Growth Aid Verizon (VZ) Amid Competition
Oracle (ORCL) Rides on Cloud Suite Adoption & Partnerships
Featured Reports
PepsiCo’s (PEP) Investments in Business Drive the Top Line
Per the Zacks analyst, PepsiCo benefits from investments in brands, go-to-market systems, supply chains, manufacturing capacity, and digital capabilities, which aided the top line in Q3.
AT&T (T) Rides on Subscriber Growth & Strength in 5G, Fiber
Per the Zacks analyst, AT&T is poised to benefit from a holistic growth policy driven by healthy wireless traction led by solid subscriber growth and strength in the 5G, fiber, and HBO Max platform.
Steady Investment & Renewable Focus Aid NextEra Energy (NEE)
Per the Zacks analyst, NextEra’s planned capital investment to enhance clean electricity generation and strengthen its infrastructure will boost its profitability.
Glaxo’s (GSK) Pipeline Grows Amid Rising Competition
Glaxo has made significant progress in its pipeline. Several new drug/line extension approvals are expected in 2022, which should boost the top line in the long term, believes the Zacks analyst.
E-commerce Adoption, High Inventory to Aid Prologis (PLD)
Per the Zacks analyst, the fast adoption of e-commerce and high inventory levels will drive demand.
Dividends Boost FedEx (FDX) Despite Supply-Chain Woes
The Zacks analyst appreciates the company’s efforts to pay dividends even in the current challenging times.
Strategic Initiatives Aid Aon (AON), Rising Debts Hurt
Per the Zacks analyst, a number of acquisitions and collaborations have helped Aon enhance its capabilities, which has, in turn, improved its bottom line.
New Upgrades
Rise in Loans Demand, Fee Income Aid BankUnited (BKU) Growth
Per the Zacks analyst, decent loan demand and focus on fee income are expected to keep aiding BankUnited’s revenues. Manageable debt level and solid balance sheet position are other tailwinds.
RPC (RES) to Benefit From Increased OilField Activities
Per the Zacks analyst, RPC is well-positioned to benefit from increasing oilfield activities in the industry it serves, as the favorable commodity pricing scenario has driven upstream investments.
Product Innovations to Aid JAKKS Pacific’s (JAKK) Top Line
Per the Zacks analyst, JAKKS Pacific’s solid international footprint, focus on innovation, and collaborations with popular brands and movie franchisees should boost top-line growth.
New Downgrades
Sanofi (SNY) Diabetes Unit Weak; COVID Hurting Sales
Sanofi is facing the weak performance of its Diabetes unit and generic competition for many drugs, per the Zacks analyst. COVID-19 has resulted in a slowdown in new patient starts of some drugs.
Rising Operating Costs, Regulatory Risks Hurt Navient (NAVI)
Per the Zacks analyst, regulatory risks may hinder servicing fee business growth opportunities. Mounting expenses due to Navient’s investments in technology might impede bottom-line growth.
Cost Woes & Elevated Leverage to Ail American Axle (AXL)
Per the Zacks analyst, the rising commodity and R&D costs will result in the deterioration of the already-stretched balance sheet (with a debt to capitalization of 88%) of American Axle.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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
