Monday, February 25, 2019
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 Bank of America (BAC), Oracle (ORCL) and Intuit (INTU). 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 >>>
Bank of America possesses an impressive earnings surprise history, beating expectations in each of the trailing four quarters. The Zacks analyst thinks rise in loan and deposit balances, higher interest rates and efforts to control expenses will likely support profitability.
Also, its initiatives to expand into new markets and digital offerings are expected to further enhance cross selling opportunities. However, dismal performance of capital markets has been hurting the company’s investment banking operations. Thus, this is will likely hamper its fee income growth to some extent in the quarters ahead.
(You can read the full research report on Bank of America here >>>).
Oracle is benefiting from strong adoption of its cloud-based solutions, comprising Fusion ERP and Fusion HCM, among others. The Zacks analyst thinks partnerships with the likes of Accenture are helping the company rapidly expand its cloud-base clientele. Also, anticipated strong demand for the next-generation autonomous database supported by machine learning will boost competitive position against AWS.
Oracle is anticipated to benefit from growing retail clientele. The company has positive record of earnings surprises in recent quarters. Nonetheless, stiff competition in the cloud market from dominant players is anticipated to limit margin expansion.
Further, lower hardware volumes are anticipated to hurt top-line growth consequently keeping margins under pressure. Additionally, integration risks from buyouts remain a concern. Notably, estimates have been stable lately ahead of the company’s Q3 earnings release.
(You can read the full research report on Oracle here >>>).
Intuit's Q2 results benefited from solid online ecosystem revenue growth. The Zacks analyst thinks impressive growth across its Small Business and Self-Employed, and Consumer Tax segments is a tailwind. TurboTax Live offering also is likely to be a tailwind to the Consumer tax business. A solid momentum of the company’s lending product, QuickBooks Capital is a positive for the company.
Moreover, the company’s strategy of shifting its business to cloud-based subscription model will help generate more stable revenues over the long run. However, high costs and expenses remain a major concern. Competition from companies like Microsoft also increases pricing pressure.
Again, due to the business being seasonal, Intuit is exposed to significant operational risks. Moreover, it expects QuickBooks desktop unit to decline in single digits, and desktop ecosystem revenues to be flat in fiscal 2019.
(You can read the full research report on Intuit here >>>).
Other noteworthy reports we are featuring today include Southwest Airlines (LUV), Consolidated Edison (ED) and American Water Works (AWK).
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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
Branch Expansion to Aid BofA (BAC), Underwriting a Woe
Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships
Intuit (INTU) Rides on Product Strength, Subscriber Growth
Fleet Upgrade, Dividends & Buybacks Buoy Southwest (LUV)
The Zacks analyst likes the company's efforts to reward shareholders.
Investments to Aid ConEd (ED) Amid Rising Interest Rates
Per the Zacks analyst, a systematic investment plan enables Consolidated Edison to develop its infrastructure and maintain customer reliability.
Solid Investment, Customer Growth Aid American Water Works (AWK)
Per the Zacks analyst American Water Works' $8 to $8.6 billion capital spending plan for next five year and consistent customer growth via organic & inorganic methods will drive its performance.
Altice (ATUS) Rides on Advertising Business, Fiber Deployment
Per the Zacks analyst, Altice remains well poised to benefit from the rapid growth of Athena, the targeted ad planning platform for its advanced advertising tool a4.
Strong Revenues, Balance Sheet Aid Lincoln National (LNC)
Per the Zacks analyst, expanding product suite in attractive markets and increasing the breadth and effectiveness of distribution have aided revenues.
Strength in Sensor & Transmitter Segments Aids DexCom (DXCM)
The Zacks analyst is also optimistic about DexCom's significant commercial opportunities in the glucose monitoring market.
Rates, Auto Loans to Aid Ally Financial (ALLY), Costs a Woe
Per the Zacks analyst, rise in retail auto loan demand, higher interest rates, efforts to diversify revenue base will aid Ally Financial.
Synopsys (SNPS) Rides on Product Launches and Customer Wins
Per the Zacks analyst, Synopsys' sustained focus on introducing products coupled with deal wins with some key semiconductor companies is driving its topline.
Positive Uptake of Lead Drug Rhopressa Boosts Aerie (AERI)
Per the Zacks analyst, strong uptake in in Rhopressa's prescription volumes will boost sales for Aerie. Moreover, tentative approval of Rocklatan will further boost prospects of the company.
Allison (ALSN) Gains From On and Off-Highway Product Demand
Per the Zacks analyst, augmented demand for on and off-highway products from global customers and price increase of certain products drive Allison's revenues.
Green Dot (GDOT) Hurt By Stiff Competition, Seasonality
The Zacks analyst believes that highly competitive financial technology services market will weigh on Green Dot's operating revenues. Seasonal factors causes fluctuation in revenues.
Higher Input Costs, Weak Prices Ail Westlake Chemical (WLK)
Per the Zacks analyst, Westlake faces headwinds from raw material cost inflation and low pricing for a number of its key products including polyethylene and PVC resin, which may hurt its margins.
High Costs & Debts, Forex Woes Ail Altra Industrial (AIMC)
Per a Zacks analyst, Altra Industrial faces risk from higher cost of sales (related to tariffs, inflation and others) and debts. Also, adverse impact of forex woes remain a concern.
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Oracle Corporation (ORCL) : Free Stock Analysis Report
Southwest Airlines Co. (LUV) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
Consolidated Edison Inc (ED) : Free Stock Analysis Report
Bank of America Corporation (BAC) : Free Stock Analysis Report
American Water Works Company, Inc. (AWK) : Free Stock Analysis Report
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