Friday, September 2, 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), Accenture plc (ACN) and ConocoPhillips (COP). 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 shares have declined -15.0% over the past year against the Zacks Computer - Software industry’s decline of -20.6%. The company’s higher spending on product enhancements, especially toward the cloud platform, amid increasing competition in the cloud domain is likely to limit margin expansion.
However, Oracle is benefiting from 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.
(You can read the full research report on Oracle here >>>)
Accenture shares have declined -14.9% over the past year against the Zacks Consulting Services industry’s decline of -12.7%. The company’s pricing pressure due to significant competition from strong companies like Genpact, Cognizant and Infosys, remains a concern. Global presence exposes it to foreign currency exchange rate fluctuations. Buyout-related integration risks continue to remain a concern.
However, Accenture has been steadily gaining traction in its outsourcing and consulting businesses backed by high demand for services that can improve operating efficiencies and save costs. The company has been strategically enhancing its cloud and digital marketing suite through buyouts and partnerships.
The company’s strong operating cash flow has helped it reward its shareholders in the form of dividend payments and share repurchases, and pursue opportunities in areas that show true potential.
(You can read the full research report on Accenture here >>>)
ConocoPhillips shares have outperformed the Zacks Oil and Gas - Integrated - United States industry over the past year (+97.7% vs. +96.6%). The company holds a bulk of acres in the unconventional plays of Eagle Ford shale, Permian Basin and Bakken shale. Significant opportunities are there for the firm in the Bakken Shale, where it owns about 750 undrilled locations that could provide access to huge reserves.
ConocoPhillips has revised its expected 2022 return of capital to shareholders upward to $15 billion from the prior-stated $10 billion. Also, its balance sheet is significantly less leveraged than the industry it belongs to. COP reported strong second-quarter results due to higher production and prices.
However, COP is highly exposed to oil price fluctuations, which makes things challenging for the company. Also, it been generating lower dividend yield than the composite stocks belonging to the industry over the past few years. As such, the stock warrants a cautious stance.
(You can read the full research report on ConocoPhillips here >>>)
Other noteworthy reports we are featuring today include U.S. Bancorp (USB), Aon plc (AON), and Sempra (SRE).
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) Gains from Cloud Suite Adoption & Partnerships
Eclipse Buyout Boosts Accenture (ACN), High Talent Cost Ails
ConocoPhillips (COP) Banks On Oil-Rich Bakken Shale Assets
Acquisitions, Loans Aid U.S. Bancorp (USB), High Costs Ail
Per the Zacks analyst, inorganic expansion efforts, steady rise in loan demand and solid balance sheet aid U.S. Bancorp's financials. However, higher expenses and concentrated loan portfolio are woes.
Aon's (AON) Strategic Acquisitions Aid, Debt Woes Linger
Per the Zacks analyst, a number of acquisitions and collaborations are helping AON enhance its capabilities, which, in turn, has improved its bottom line. However, rising debts remain a concern.
Solid Investments Aid Sempra Energy (SRE), Weak Solvency Woes
Per the Zacks analyst, systematic investments significantly boost Sempra Energy's infrastructure and its customers reliability. However, its weak solvency position remains a concern
Centene (CNC) Rides on Growing Revenues Amid Rising Costs
Per the Zacks analyst, solid Medicaid business, several contract wins and acquisitions continue to drive the company's revenues. However, elevated expenses remain a concern.
Insulet (PODD) Rides on Solid Omnipod Uptake Amid High Costs
The Zacks analyst is encouraged by the continued uptake of Insulet's Omnipod DASH and Omnipod 5 across the United States. Yet, mounting operating expenses are weighing on the company's bottom line.
Ubiquiti (UI) Focuses on Infrastructure Investment, Cost Cuts
Per the Zacks analyst, Ubiquiti is likely to benefit from steady infrastructure investments and remains committed to reducing operational costs with a self-sustaining mechanism for product support.
Empaveli to Fuel Apellis (APLS) Amid Competition
Per the Zacks analyst, solid performance of its approved drug, Empaveli, has fueled growth for Apellis, and should be a top-line booster. The company's pipeline progress has been encouraging as well.
Solid Investments Boost CenterPoint Energy's (CNP) Growth
Per the Zacks analyst, CenterPoint Energy's investment in infrastructure and expansion projects tend to boost its long-term growth prospects and earnings amid the increasing utility demand.
Fleet Expansion, Investor-Friendly Steps Aid Avis Budget (CAR)
The Zacks analyst appreciates Avis Budget's expansion of its fleet of connected vehicles to manage its rental program. Also, its impressive record of adding shareholder value is a boon.
United Rentals' (URI) Gains From Non-Residential Construction
Per the Zacks analyst, persistent growth opportunities from non-residential construction and industrials verticals bode well for United Rentals.
Higher Input & Production Costs Hurt Kronos Worldwide (KRO)
Per the Zacks analyst, a spike in raw material costs due to disruptions in global supply chains will weigh on the company's bottom line. It also faces headwind from higher production costs. n
Macroeconomic & Inflation Issues to Hurt PVH's (PVH) Sales
Per the Zacks analyst, PVH Corp is witnessing lower demand due to inflation, impacts of the Ukraine war and supply-chain and logistics issues. Backed by these, Q3 revenues are likely to decline 4-5%.
HP (HPQ) Hurt by Declining Demand, Component Shortages
Per the Zacks analyst, HP is hurt by declining demand for its consumer and educational PCs. Also, component shortages and logistics delays are negatively impacting its hardware business.
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Accenture PLC (ACN) : Free Stock Analysis Report
ConocoPhillips (COP) : Free Stock Analysis Report
Sempra Energy (SRE) : Free Stock Analysis Report
U.S. Bancorp (USB) : Free Stock Analysis Report
Oracle Corporation (ORCL) : Free Stock Analysis Report
Aon plc (AON) : Free Stock Analysis Report
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