Tuesday, August 28, 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), Intuit (INTU) and Regeneron Pharmaceuticals (REGN). 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 so far this year, gaining +4.4% vs. +24.7%. However, Oracle is one of the largest enterprise-grade database, middleware and application software providers.
The company is benefiting from strong adoption of its cloud-based solutions. The Zacks analyst believes that the company’s growing cloud market share will continue to drive top-line growth in the long haul. The analyst notes that 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 AWS. Nonetheless, stiff competition in the cloud is expected to hurt margins and will make revenue growth difficult.
Notably, Oracle has undergone structural changes. It no longer intends to break out its cloud revenues and does not provide any guidance on SaaS, Cloud PaaS and IaaS. This move is likely to enhance investor concern about the company's outlook.
(You can read the full research report on Oracle here >>>).
Buy-rated Intuit’s shares have outperformed the Zacks Computer Software industry over the last year, increasing +53.6% vs. a gain of +37.8%. Intuit’s fiscal Q4 results were driven by impressive growth across its Small Business and Self-Employed, and Consumer Tax segments.
Intuit is benefiting from frequent product refreshes, which help it to gain customers. It witnessed solid growth in QuickBooks Online subscriber base. TurboTax Live offering also is likely to be a tailwind to the Consumer tax business.
Moreover, the company’s strategy of shifting its business to cloud-based subscription model will help generate more stable revenues over the long run. However, high costs and expenses remain a major concern.
Competition from companies like Microsoft also increases pricing pressure. Again, due to the business being seasonal, Intuit is exposed to significant operational risks.
(You can read the full research report on Intuit here >>>).
Buy-rated Regeneron’s shares have outperformed the Zacks Biomedical and Genetics industry year-to-date, gaining +3.3% vs. a decline of -4%. Regeneron’s second-quarter results were impressive as the company comfortably beat both earnings and sales estimates on the back of growth in Dupixent’s sales.
Dupixent uptake in the United States for moderate-to-severe atopic dermatitis was encouraging. The performance of Regeneron's key growth driver, Eylea, continues to be strong as well and the recent label expansion of Eylea in patients with wet age-related macular degeneration will further boost sales.
The company is also working to expand Dupixent’s label, which should diversify the company’s revenue base and reduce dependence on Eylea. Immuno-oncology candidate cemiplimab’s progress is promising as well and a potential approval for the treatment of cutaneous squamous cell carcinoma in October will be a significant boost for Regeneron.
(You can read the full research report on Regeneron here >>>).
Other noteworthy reports we are featuring today include Macy's (M), Restaurant Brands International (QSR) and Deere (DE).
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Today's Must Read
Oracle (ORCL) Rides on Partnerships & Cloud-based Solutions
Intuit (INTU) Rides on Product Refresh, Higher Subscriptions
Eylea, Dupixent Boost Regeneron's (REGN) Growth Prospects
Demand Growth, Cost Reduction Initiatives Aid Aerojet (AJRD)
Per the Zacks analyst, increasing demand in the rocket and missile propulsion markets should boost Aerojet Rocketdyne's growth. Its cost reduction initiatives will enable new product innovation.
Chesapeake (CHK) Buoyed by Marcellus Shale Amid Debt Concerns
While Chesapeake's focus on Marcellus Shale and its plans to enrich the region's upstream prowess bode well, the Zacks analyst is worried over the considerable long-term debt load.
Deere (DE) Buoyed by Precision Agriculture Amid Cost Woes
Per the Zacks Analyst, investment in precision hardware, telematics and digital solutions will aid Deere's precision agriculture strategy.
Ubiquiti (UBNT) Rides on Portfolio Strength Amid Competition
Per the Zacks analyst, Ubiquiti's financial performance will likely improve with continued momentum in UniFi product family and solid network platform.
Restaurant Brands (QSR) Rides on Franchising Amid Competition
The Zacks analyst believes that focus on franchising should reduce Restaurant Brands' capital requirements and facilitate earnings growth.
AMETEK (AME) Rides on Organic Growth & Acquisition Benefits
Per the Zacks analyst, AMETEK's organic sales continue to grow with its robust thermal management and ultra precision technologies.
Burlington Stores (BURL) Sturdy Comps Run to Propel Top-Line
Per the Zacks analyst, Burlington Stores' strategies helped attain 21st straight quarter of comps growth in the first quarter. The company expects 2.6-3.4% comps growth for fiscal 2018.
FactSet (FDS) Gains From Client Retention, Organic Growth
The Zacks analyst is impressed with growth in FactSet's annual subscription value, driven by client additions. It looks strong on higher organic revenues, robust global network and strategic buyouts.
Solid Growth in Business-to-Business Unit Aids Inogen (INGN)
Inogen's strong business-to-business sales continue to drive the company's growth in United States. The Zacks Analyst is also optimistic about core direct-to-consumer unit's contributions.
Macy's (M) Omnichannel Strategy, Private Brands to Lift Sales
Per the Zacks analyst, Macy's price optimization, cost containment and omnichannel strategy will help lift performance. The company's focus on private label brands will help boost profit margins.
Deutsche Bank (DB) Depicts Margin & Litigation Pressure
Per the Zacks analyst, legal issues leading to high expenses remain a concern for Deutsche Bank. Further, low (and even negative) interest rate environment and a competitive landscape add to the woes.
Rising Expenses Continue to Hurt Willis Towers (WLTW)
Per the Zacks analyst, rising expenses, mainly due to higher transaction and integration, and depreciation costs, will continue to restrict Willis Towers' operating margin expansion.
Dun & Bradstreet (DNB) Hurt by Stiff Competition, High Debt
The Zacks Analyst is worried about Dun & Bradstreet's operation in the highly competitive and fragmented market. High debt level continues to remain a major concern.
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Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report
Restaurant Brands International Inc. (QSR) : Free Stock Analysis Report
Oracle Corporation (ORCL) : Free Stock Analysis Report
Macy's, Inc. (M) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
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