U.S. Markets closed

Top Analyst Reports for Oracle, U.S. Bancorp & Enterprise Products

Mark Vickery

Thursday, March 14, 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 Oracle (ORCL), U.S. Bancorp (USB) and Enterprise Products (EPD). 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 >>>

Oracle’s shares have underperformed the Zacks Computer Software industry in the past year, gaining +1.3% vs. +17.3%. Oracle is one of the largest enterprise-grade database, middleware and application software providers. The Zacks analyst thinks the company is benefiting from strong adoption of its cloud-based solutions, comprising Fusion ERP and Fusion HCM, among others. 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 Amazon Web Services (AWS). Nonetheless, stiff competition in the cloud market from dominant players is anticipated to limit margin expansion.

Lower hardware volumes are anticipated to hurt top-line growth, consequently keeping margins under pressure. Additionally, integration risks from buyouts remain a concern.

(You can read the full research report on Oracle here >>>).

Shares of U.S. Bancorp have outperformed the Zacks Major Banks industry over the past six months, losing -4.7% vs -6.7%. The company possesses an impressive earnings surprise history, beating expectations in all the trailing four quarters.

The Zacks analyst thinks U.S. Bancorp's prospects will likely get support from its solid business model, core franchise, lower tax rate, rising interest rate and diverse revenue streams. Also, its organic growth remains solid and will likely benefit from the improving economic scenario.

U.S. Bancorp remains well poised to grow through acquisitions. However, escalating expenses due to its ongoing investments in technology and likely increase in legal expenses remain concerns.

(You can read the full research report on U.S. Bancorp here >>>).

Enterprise Products’ shares have gained +13.6% over the past three months, outperforming the Zacks Oil Production Pipeline MLP industry advanced by +11.9%. Enterprise Products Partners boasts of an extensive network of pipeline that spreads across nearly 50,000 miles.

Importantly, the pipeline network is connected to every major U.S. shale play and provides services to producers and users of commodities by transporting gas, liquids and refined products. The Zacks analyst thinks Enterprise’s $5.1-billion pipeline of fee-oriented midstream projects will enable it to enjoy above-average growth in distributable cash flow (DCF) over the next two years, expanding its distribution coverage ratio.

However, turnaround-related costs from Seminole fractionators hurt Enterprise’s fractionation business. Also, the persistent rise in operating expenses has been affecting the partnership’s bottom line. Enterprise’s balance sheet is more levered than the industry it belongs to. Therefore, the stock warrants a cautious stance.

(You can read the full research report on Enterprise Products here >>>).

Other noteworthy reports we are featuring today include Intuitive Sherwin-Williams (SHW), PPL Corp. (PPL) and Cintas (CTAS).

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>

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

Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships

Loan Growth Supports U.S. Bancorp (USB), Cost Woes Linger

Enterprise (EPD) Banks on $5B Fee-Based Projects, Debts High

Featured Reports

Traffic Growth Buoys Ryanair (RYAAY) Amid Labor Unrest

The Zacks analyst likes the traffic increase due to strong demand for air travel. Efforts to modernize its fleet are also encouraging.

Cimarex (XEC) Rides on Resolute Buyout, Permian Woes Ail

Per the Zacks analyst, Cimarex will significantly grow on the back of the oil resources acquired from Resolute Energy.

United Therapeutics' (UTHR) Pipeline Strong Amid Competition

The Zacks analyst likes United Therapeutics' efforts to develop new delivery mechanisms for Remodulin and expanded indications for other PAH drugs like Orenitram and Tyvaso amid increased competition.

New Store Openings Aid Advance Auto (AAP) Amid Expense Woes

Per the Zacks analyst, new store openings, expansion of online presence and strategic collaborations aid Advance Auto's growth.

Southwestern (SWN) Buoyed by Appalachian Holding, Debt High

The Zacks analyst thinks Southwestern's investments in high-return areas such as Appalachia are noteworthy.

Growing Topline Aid Acadia Healthcare (ACHC), Expenses Hurt

Per the Zacks analyst, growing revenues driven by strong organic and inorganic growth has led to significant growth.

Acquisitions Benefit Legg Mason (LM), Equity Outflows a Woe

Per the Zacks analyst, Legg Mason's strategic acquisitions have resulted in diversified product offerings and expansion in market share.

New Upgrades

W&T Offshore (WTI) to Gain From Oil Reserves in Gulf of Mexico

The Zacks analyst believes that massive oil equivalent reserves in the deepwater Gulf of Mexico will help W&T Offshore boost production volumes.

Omnicell's (OMCL) XT Uptake Strong, New Deals Hold Promise

Per the Zacks analyst, Omnicell's recently-inked deals for both the XR2 and the IVX Workflow products look strategic. The company continues to see solid uptake of Omnicell XT.

HCP Inc. (HCP) Looks Good on Portfolio-Repositioning Efforts

Per the Zacks analyst, HCP will likely gain from its efforts to improve portfolio quality and operator mix. Focus on medical office and life-science properties is also encouraging.

New Downgrades

Higher Input Costs, Hefty Charges Ail Sherwin-Williams (SHW)

According to the Zacks analyst, higher raw materials costs and sizable charges related to the Valspar acquisition will weigh on Sherwin-Williams' bottom line in 2019.

Unplanned Outages, Rising Debt Levels Hurt PPL Corp. (PPL)

Per the Zacks analyst, stringent regulation, unplanned outages and high-debt levels amid rising interest rates are headwinds for PPL Corporation.

Rising Operating Expenses Restrict Cintas Corporation (CTAS)

Per the Zacks analyst, Cintas' revenue growth is being dampened by a rise in operating expenses due to increase in commodity costs. High debt level is putting pressure on the company's profitability.

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
U.S. Bancorp (USB) : Free Stock Analysis Report
The Sherwin-Williams Company (SHW) : Free Stock Analysis Report
PPL Corporation (PPL) : Free Stock Analysis Report
Oracle Corporation (ORCL) : Free Stock Analysis Report
Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report
Cintas Corporation (CTAS) : Free Stock Analysis Report
To read this article on Zacks.com click here.