Top Research Reports for Microsoft, Anheuser-Busch InBev & HCA Healthcare
Thursday, June 29, 2023
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 Microsoft Corporation (MSFT), Anheuser-Busch InBev SA/NV (BUD) and HCA Healthcare (HCA). 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 >>>
Microsoft shares have outperformed the Zacks Computer - Software industry over the past six months (+40.7% vs. +39.0%) on the back of the company's AI leverage. The company is riding on strong growth from Intelligent Cloud and Productivity and Business Processes. Intelligent Cloud revenues have been driven by growth in Azure and other cloud services.
Productivity and Business Processes revenues continues to increase due to strong adoption of Office 365 Commercial solutions. Continued momentum in the small and medium businesses and frontline worker offerings, as well as gain in revenue per user drove top-line growth.
However, More Personal Computing revenues decreased due to weak Windows and Devices businesses. Steady performance in Talent Solutions aided LinkedIn revenues. Also, declining gaming revenues has been a headwind. Increasing spend on Azure enhancements amid stiff competition in the cloud space remains a concern.
(You can read the full research report on Microsoft here >>>)
Shares of Anheuser-Busch InBev have outperformed the Zacks Beverages - Alcohol industry over the past year (+4.6% vs. +2.5%). The company has been benefiting from continued business momentum, which resulted in top and bottom-line growth in first-quarter 2023. Further, the company’s relentless execution, investment in brands and accelerated digital transformation aided performance.
The top line benefited from strong consumer demand for its portfolio, consistent execution of its strategy and strength of the beer category globally. The expansion of the Beyond Beer portfolio, and investments in B2B platforms, e-commerce and digital marketing bode well. Backed by the continued business momentum, the company outlined its view for 2023.
However, shares of AB InBev lagged the industry in the past three months on lower-than-expected earnings in the first quarter. AB InBev’s gross and EBIT margin declined in the first-quarter, driven by higher cost of sales and SG&A expense.
(You can read the full research report on Anheuser-Busch here >>>)
HCA Healthcare shares have outperformed the Zacks Medical - Hospital industry over the past year (+79.9% vs. +66.5%). The company’s revenues remain on an uptick on the back of a surge in admissions, outpatient surgeries and other procedures. Multiple buyouts aided it in increasing patient volumes, enabled network expansion, added hospitals to its portfolio and boosted business scale.
HCA Healthcare has been gaining from its telemedicine business line. HCA Healthcare resorts to prudent capital deployment via buybacks and dividends. As of Mar 31, 2023, it had $3.7 billion left under its buyback authorization. A solid business outlook added to the positives.
However, the company's escalating operating expenses have been weighing on the margins. A high debt level induces rise in interest expenses. As such, the stock warrants a cautious stance.
(You can read the full research report on HCA Healthcare here >>>)
Other noteworthy reports we are featuring today include The Southern Company (SO), Delta Air Lines (DAL) and TELUS (TU).
Director of Research
Sheraz Mian
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
Adoption of Cloud & Office 365 Strength Aid Microsoft (MSFT)
Beyond Beer Expansion to Drive AB InBev's (BUD) Top Line
Improving Admissions Aid HCA Healthcare (HCA), High Costs Hurt
Featured Reports
Southern Company (SO) Buoyed by Regulated Customer Growth
The Zacks analyst believes that increase in Southern's regulated business customer base will support its revenue growth but is concerned over timing and cost overrun related to Vogtle project.
Delta (DAL) Banks on Air Travel Demand Amid Escalating Costs
Upbeat air travel demand is driving Delta's top line. The Zacks analyst is, however, worried about escalating fuel costs that are limiting bottom-line growth
TELUS (TU) To Benefit From Growing PureFibre and 5G Demand
Per the Zacks analyst, TU will benefit from increased demand for its PureFibre and 5G wireless network. Intense competition and high-debt burden remain concerns.
Carnival (CCL) Rides on Solid Booking Trends Amid High Costs
Per the Zacks analyst, improved ticket pricing, solid onboard spending levels and capacity-generation initiatives aid Carnival. However, increased fuel prices and currency risks hurt its growth.
Expanding Solar Market Aid Enphase (ENPH) Amid Supply Woes
Per the Zacks analyst, the expanding solar market tends to benefit Enphase. However, constrained component supply conditions may adversely impact its revenues and results of operations.
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.
NextGen (NXGN) Gains From Solid Demand for Its Solutions
The Zacks analyst is upbeat about NextGen continuing to benefit from strong demand for its solutions over the past few months despite its operation in a highly competitive market.
New Upgrades
Strong Demand, Growth in E-Commerce Sales Aid Grainger (GWW)
Per the Zacks analyst, Grainger is poised well to gain on strong demand in its end markets and efforts to strengthen customer relationships and investment in e-commerce and digital capabilities.
Change in Deposit Mix, Higher Rates Support BankUnited (BKU)
Per the Zacks analyst, decent loan demand and higher interest rates along with BankUnited's strategy to increase low-cost deposits will likely support the company's top-line growth in the near term.
IMAX (IMAX) To Benefit from Strong Slate of Upcoming Movies
Per the Zacks analyst, IMAX will benefit from a strong slate of movies and expansion of theatres, particularly in the United States
New Downgrades
Inflation & Adverse Product Mix Hurt Dollar Tree (DLTR)
Per the Zacks analyst, Dollar Tree has been witnessing adverse product mix due to demand shift toward low-margin consumable goods. Inflation is likely to ail margins and bottom line in the near term.
Macy's (M) Grapples With Inflationary & Other Headwinds
Per the Zacks analyst, Macy's battles macroeconomic pressures including the inflationary woes, waning consumer confidence and a pullback in spending activity. Higher promotions are hurting margins.
Higher Spending Amid Stiff Competition Hurts Take Two (TTWO)
Per the Zacks analyst, intense competition from the likes of EA and Activision is compelling Take Two to spend more on game development and advertising thereby keeping margins under pressure.
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Southern Company (The) (SO) : Free Stock Analysis Report
TELUS Corporation (TU) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report
HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report
