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Top Stock Reports for Microsoft, Alphabet & Comcast

Mark Vickery

Friday, October 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 Microsoft (MSFT), Alphabet (GOOGL) and Comcast (CMCSA). 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’s shares have outperformed the S&P 500 year to date (37.8% vs. 10.5%). The Zacks analyst believes that robust execution and better-than-expected demand from customers for hybrid cloud offerings drove the quarterly results.

Moreover, strong Commercial business positively impacted the top and bottom lines. Microsoft is benefiting from a growing user base for its different applications like Office 365 commercial, Dynamics, Outlook mobile and Teams.

Further, acquisitions like PlayFab and GitHub expand Microsoft’s TAM and penetration. Also, Microsoft’s collaboration with AT&T bodes well. The company is consistently integrating cloud capabilities of Azure into its gaming segment which is yet another positive. However, competition is stiff and the company’s dominant position in the PC market continues to be challenged.

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

Shares of Alphabet have lost 1.4% in the past six months against the Zacks Internet Services industry’s decline of 15.1%. The Zacks analyst believes that Alphabet will continue to be driven by improving search & advertising revenues, hardware and AI.

Its strong focus on bolstering presence in the cloud market on the back of expanding data centers and robust cloud offerings continues to aid growth. The company’s initiatives toward elimination of bad ads and introducing useful major search updates are tailwinds.

Google’s robust mobile search is also a positive. Its strong focus on innovation of its AI techniques and the home automation space is aiding business growth. However, the company’s growing litigation issues, growing competition and increased spending on YouTube might hurt profitability. 

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

Comcast’s shares have gained 0.4% over the past three months against the Zacks Cable Television industry’s rise of 0.3%. The Zacks analyst believes that Comcast’s third-quarter 2019 results were driven by Cable’s solid performance.

The segment benefited from an expanding residential high-speed Internet customer base and business services user base. The company’s results also reflected the growing popularity of Xfinity products. Moreover, expansion in the wireless user base, and the security and automation services customer base drove results. Further, Theme Parks revenues grew significantly in the reported quarter.

However, weakness in Broadcast television and Filmed Entertainment segments negatively impacted NBCUniversal revenues. Moreover, Comcast continued to lose video subscribers due to cord-cutting. Although debt level improved slightly in the reported quarter, the balance sheet is significantly leveraged.

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

Other noteworthy reports we are featuring today include SAP (SAP), BlackRock (BLK) and Northrop Grumman (NOC).

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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

Adoption of Cloud & Office 365 Strength Aids Microsoft (MSFT)

Alphabet (GOOGL) Rides on Diversification; Legal Troubles Ail

High Speed Internet Subscriber Gain Benefits Comcast (CMCSA)

Featured Reports

SAP Rides on Cloud Initiatives & Growth in S/4HANA Platform

Per Zacks analyst, SAP's resilient Cloud and Software business, act as staple growth drivers. Impressive growth in S/4HANA and other Cloud initiatives have supported the company's top line.

Active Equity Focus Aids BlackRock (BLK), High Costs a Woe

Per the Zacks analyst, BlackRock's efforts to restructure its active equity business will support revenue growth. However, these efforts might lead to higher expenses, thus hurting the bottom line.

Investments Aids Northrop (NOC), High Operating Expenses Hurt

Per the Zacks Analyst, Northrop Grumman's regular investments in growth projects bolsters its future prospects.

Record Bookings to Aid Raytheon (RTN), Trade Tariff May Hurt

Per the Zacks analyst, Raytheon enjoys a record bookings growth trend, which bolsters its revenue growth prospects.

Ridesharing Revenues, Expansion Efforts Aid Uber (UBER)

The Zacks analyst is impressed with the uptick in ridesharing revenues. Uber's efforts to expand its presence globally through various deals are encouraging as well.

Las Vegas Sands (LVS) Banks on Macao Business to Drive Growth

The Zacks analyst believes that Las Vegas Sands' planned investment in new capital projects in Macao and higher revenues from Sands Macao are also likely to drive growth.

Solid Balance Sheet, Strong U.S. Business Aids Aflac (AFL)

Per the Zacks analyst, Aflac U.S. continues to perform strongly and have led to top line growth. Its strong balance sheet enables share buyback & dividend payment and investment in business.

New Upgrades

Acquisitions Likely to Keep Driving Hershey's (HSY) Top Line

Per the Zacks analyst, Hershey's top line has been gaining from buyouts. The acquisition of One Brands is likely to contribute nearly $25 million toward the top line in fourth-quarter 2019.

Solid Cloud Demand & Expanding Clientele Aids Splunk (SPLK)

Per the Zacks analyst, Splunk is benefiting from solid demand for cloud-based solutions and new customer wins.

Jazz's (JAZZ) Sunosi Launch to Boost Sleep Franchise Sales

Per the Zacks analyst, the launch of newly approved for Sunosi in July is likely to boost Jazz's sleep franchise which continues to perform well on the back of strong demand for Xyrem.

New Downgrades

Advance Auto (AAP) to be Hurt by Trade Tiff & High Capex

Per the Zacks analyst, growing U.S.-Sino trade tiff is affecting auto-parts manufacturers like Advance Auto Parts, denting their margins. Further, the firm's high capex is likely to hurt cash flows.

Weak Fluid Power Segment Hurts Applied Industrial (AIT)

Per the Zacks Analyst, Applied Industrial's sales will continue to be hurt by weakness in Fluid Power segment due to low market demand for flow control products. High operating costs remain concerns.

Soft Pricing for Pressure Pumping Activities Hurts RPC (RES)

Pricing for pressure pumping activities in North America is likely to remain soft. With pressure pumping being RPC's biggest service line, the firm's business outlook is gloomy, per the Zacks analyst.

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SAP SE (SAP) : Free Stock Analysis Report
Northrop Grumman Corporation (NOC) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Comcast Corporation (CMCSA) : Free Stock Analysis Report
BlackRock, Inc. (BLK) : Free Stock Analysis Report
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