Top Research Reports for Oracle, Netflix & Danaher
Tuesday, October 23, 2018
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), Netflix (NFLX) and Danaher (DHR). 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 over the past year, losing -4.1% vs. +24.4%. 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). Nevertheless, 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 Netflix have increased +71.6% year to date, significantly outperforming the Zacks Broadcast Radio and Television industry’s gain of +23.8% during the same period. Netflix’s third-quarter 2018 subscriber addition rate reflected growing appeal of the streaming platform.
The Zacks analyst thinks that this appeal is primarily derived from a solid content portfolio mix of in-house originals and licensed content. The portfolio strength helped the company win 23 trophies in different categories, equal to HBO, in Emmy Awards 2018. This is also helping the company steer away competition from the likes of HBO, Amazon Prime and YouTube.
Moreover, partnerships with telcos like Telefonica in Spain and Latin America, and KDDI in Japan are expected to boost subscriber additions. In the third quarter, Netflix rolled out its first mobile bundle in Japan with KDDI. The company also expanded its collaboration with Verizon to pre-install the Netflix app on Android phones. Further, the inclusion of Netflix into Sky’s pay-TV packages, which it expects to rollout in the fourth quarter, presents a significant growth opportunity.
(You can read the full research report on Netflix here >>>).
Danaher’s shares have gained +6.2% year to date, outperforming the Zacks Diversified Operations industry, which has declined -10.6% over the same period. In the third quarter of 2018, the company surpassed earnings and sales estimates by 2.8% and 0.9%, respectively.
The company believes sturdier demand for innovative products will continue to drive its revenues in the quarters ahead. The Zacks analyst thinks robust top-line performance and effective Danaher Business System ("DBS") implementation will bolster profitability.
Moreover, Danaher anticipates that the acquisition of Integrated DNA Technologies and divestiture of its dental business will boost its competency. It increased adjusted earnings per share projection for 2018 from $4.43-$4.50 to $4.49-$4.52.
However, rising cost of sales remains a major cause of concern. Extensive governmental regulations on import laws, export control, economic sanctions laws and unfavorable movements in foreign currencies might continue to restrict Danaher's growth.
(You can read the full research report on Danaher here >>>).
Other noteworthy reports we are featuring today include BB&T Corporation (BBT), State Street (STT) and Rogers Communications (RCI).
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Today's Must Read
Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships
Subscriber Additions, Content Strength Drives Netflix (NFLX)
Solid Products & Buyouts Aid Danaher (DHR), High Costs Ail
Featured Reports
Wireless Subscriber Growth Aids Rogers Communications (RCI)
Per the Zacks analyst, solid subscriber gains in wireless segment and increasing Internet user count is benefiting Rogers Communications.
Portfolio Strength To Aid Philips (PHG) Amid Tariff Concerns
Per the Zacks analyst, Philips is gaining from strength in its Diagnosis & Treatment business. However, tariff related concerns related to U.S.-China trade tensions doesn???t bode well for the company.
Expansions Support People's United (PBCT), High Costs a Woe
Per the Zacks analyst, high interest rates, rising loan balances and efforts to expand into new markets are likely to support People's United's bottom line. However, high costs remain a concern.
Pool Corp (POOL) Rides on Expansion Efforts & High Demand
The Zacks analyst believes that high demand in the housing market shall continue to benefit Pool Corp.
WABCO (WBC) Rides on New Business Deals Amid Expense Woes
Per the Zacks analyst, multiple business deals and long-term agreement extensions widen WABCO's revenue prospects.
Asset Growth Aids Eaton Vance (EV), High Costs & Debt Woes
The Zacks analyst believes Eaton Vance's improving assets under management and enhanced capital deployment plans are impressive.
Cost Control & Strategic Acquisitions Aid BancorpSouth (BXS)
Per Zacks analyst, BancorpSouth's efforts to drive operating efficiency through cost control and strategic deals are encouraging.
New Upgrades
Higher Rates and Loan Growth Support BB&T's (BBT) Top Line
Per the Zacks analyst, loan growth along with higher rates will continue to aid BB&T's revenues. Also, given a solid balance sheet, the company's inorganic growth efforts seem impressive.
Acquisitions, Productivity Actions Buoy Celanese (CE)
The Zacks analyst thinks that Nilit and Omni Plastics acquisitions as well as operational cost savings through productivity actions will drive Celanese's profitability in FY18.n
Restructuring Initiatives to Aid Molina Healthcare (MOH)
Per the Zacks analyst, Molina Healthcare's restructuring and profitability improvement plan should improve its efficiency by streamlining its organizational structure and reducing costs.
New Downgrades
Uncertain Capital Markets, Expenses Hurt State Street (STT)
Per the Zacks analyst, uncertainty about the capital markets performance, which impacts State Street's trading services revenues, and higher operating expenses are the major near-term concerns.
Everest Re's (RE) Cat Exposure Hurts Underwriting Results
Per the Zacks analyst, Everest Re's exposure to catastrophe losses weigh on its underwriting profitability, causing combined ratio to deteriorate and weigh on the bottom line.
Winnebago (WGO) Struggles With Motorized Business Segment
Per the Zacks analyst, profitability of Winnebago's Motorized business segment is under pressure due to escalating costs and huge manufacturing investments made in its recreational vehicles business.
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State Street Corporation (STT) : Free Stock Analysis Report
Rogers Communication, Inc. (RCI) : Free Stock Analysis Report
Oracle Corporation (ORCL) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Danaher Corporation (DHR) : Free Stock Analysis Report
BB&T Corporation (BBT) : Free Stock Analysis Report
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