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Top Analyst Reports for Oracle, Linde & Caterpillar

·6 min read
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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.

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

Salesforce Inc. (CRM) : Free Stock Analysis Report

Caterpillar Inc. (CAT) : Free Stock Analysis Report

VALE S.A. (VALE) : Free Stock Analysis Report

Oracle Corporation (ORCL) : Free Stock Analysis Report

Linde plc (LIN) : Free Stock Analysis Report

Sony Corporation (SONY) : Free Stock Analysis Report

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Zacks Investment Research