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Top Stock Reports for Salesforce, Booking Holdings & VMware

Mark Vickery
Top Stock Reports for Salesforce, Booking Holdings & VMware

Wednesday, March 6, 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 salesforce.com (CRM), Booking Holdings (BKNG) and VMware (VMW). 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 >>>

Buy-ranked salesforce’s shares have gained +25.3% in the past year, outperforming the Zacks Computer Software industry, which has gained +15.9% over the same period. Salesforce's Q4 results benefited from strong growth across most of its business segments and deal wins in the international market.

The Zacks analyst thinks the rapid adoption of its diverse cloud offerings given the growing demand for digital transformation remains the key catalyst. Strengthening relationships with cloud companies like Amazon, Google and IBM are a positive. Additionally, strategic acquisitions like MuleSoft, Datorama and Cloudcraze is helping it deliver strong growth. The company is now aiming to achieve revenues of $26-$28 billion by fiscal 2023.

Nevertheless, stiff competition from Oracle and Microsoft is a concern. Currency fluctuations remain a key headwind. Besides, increasing investments for international expansions and data centers is an overhang on near-term profitability.

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

Shares of Booking Holdings have declined -8.2% over the past six months, outperforming the Zacks Internet Commerce industry, which has lost -13.3% over the same period. Booking Holdings reported strong fourth quarter results wherein both earnings and revenues have grown year over year on the back of improving gross bookings.

Moreover, solid growth in the booked room nights and strong momentum across global accommodation space contributed well to the gross bookings growth. Further, robust agency model continued to aid the company’s position in the international markets. Also, strong efforts toward ramping up of merchant business were positives.

The Zacks analyst thinks secular growth trend in the online travel booking market and growing mobile usage penetration are tailwinds. Moreover, the company’s strong position in international markets, growth opportunities in the domestic market and good execution of marketing strategies are major positives. However, sluggishness in the rental car days poses risk. Also, macro headwinds, increasing advertising spend and occupancy tax-related litigation remain overhangs.

(You can read the full research report on Booking Holdings here >>>).

VMware’s shares have gained +39% over the past one year, outperforming the Zacks Software industry which is up +15.9% over the same period. The Zacks analyst thinks VMware is benefiting from robust performance of NSX, VeloCloud and vSAN product lines.

The company has been consistently taking initiatives to diversify its product portfolio to include most of the IT infrastructure. VMware’s dominance in software-defined data center (SDDC) along with expanding customer base in cloud driven by partnerships with the likes of IBM and AWS is positive. The company has significant growth opportunities from rapid deployment of 5G.

Moreover, continuing enterprise deal wins will drive growth in the long haul. Nevertheless, VMware’s margins are expected to remain under pressure due to heavy spending. Intensifying competition is also a concern.

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

Other noteworthy reports we are featuring today include Sanofi (SNY), Marriott (MAR) and HP Inc. (HPQ).

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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

salesforce (CRM) Rides on Portfolio Strength and Buyouts

Booking Holdings (BKNG) Rides on Gross Bookings Amid Risks

NSX, VeloCloud and vSAN Drives VMware (VMW) Top-line Growth

Featured Reports

Sanofi (SNY) Diabetes Unit Weak, New Drugs to Drive Growth

The Zacks analyst believes that Sanofi has many new products and pipeline candidates that can drive long-term growth. Weak diabetes sales and generic competition for many drugs are headwinds.

Marriott (MAR) Rides on Starwood Acquisition Amid Competition

The Zacks analyst believes that Marriott's acquisition of Starwood has more than doubled its global presence which should continue to drive revenue growth amid a highly competitive environment.

Diverse Revenue Mix Aids Moody's (MCO), Elevated Costs a Woe

Per the Zacks analyst, Moody's is poised for growth given its diverse revenue mix and low-risk product portfolio. Yet, inorganic growth efforts are likely to keep costs high, thus hurting bottom line.

Cost Reduction Aids Southern Copper (SCCO), Debt Woes Persist

The Zacks analyst appreciates Southern Copper's focus on cost reduction and expansion actions, particularly in Peru given its prospects for copper.

ONEOK (OKE) to Gain From Assets in Higher Produtive Regions

Per the Zacks analyst, increased natural gas and natural gas liquids volumes in the STACK and SCOOP areas will boost ONEOK's future performance.

Investments, Domestic High Margin Assets Aid Devon (DVN)

Per the Zacks analyst Devon's consistent investment to develop its high margin domestic oil assets will continue to boost performance.

Vale Fertilizantes Buyout Aid Mosaic (MOS), High Debt Ails

While Mosaic's debt load is a concern, the company should gain from synergies of the Vale Fertilizantes acquisition in 2019, according to the Zacks analyst.

New Upgrades

Arista (ANET) Rides on Strong Demand Trend, Inorganic Growth

Per the Zacks analyst, Arista is well poised to benefit from the expanding cloud networking market backed by strong demand for scalable infrastructure. The buyout of Metamako is another tailwind.

Solid Global Prospects and FDA Approvals Aid Bio-Rad (BIO)

The Zacks analyst is bullish about Bio-Rad seeing solid growth in North America, China and Asia Pacific. Also, the company's receipt of FDA approval for the QXDx AutoDG ddPCR System buoys optimism.

Clean Harbors (CLH) Rides on Buyouts, Operational Efficiency

The Zacks analyst likes Clean Harbors' acquisition strategy to expand its business and enter new markets. Strategic capital investments with improved business efficiency is a positive.

New Downgrades

HP (HPQ) Hurt by Soft Personal Systems and Printing Segments

Per the Zacks analyst, HP has been hit by a slump in PC shipments due to CPU shortages and tepid consumer demand. Also, price sensitivity among customers is an overhang on its Printing business.

Rising Input & Freight Costs to Hit B&G Foods (BGS) Margins

Per the Zacks analyst, B&G Foods is grappling with high freight costs which have been weighing on margins. Moreover, the company expects freight costs to remain a headwind in 2019.

TiVo (TIVO) Gets Battered by Expiration of Time Warp Deal

Per the Zacks analyst, loss of settlement deals for Legacy TiVo Time Warp IP that ended last year, is denting TiVo's top line. Decline in sales of hardware and analog products is another overhang.

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VMware, Inc. (VMW) : Free Stock Analysis Report
Sanofi (SNY) : Free Stock Analysis Report
Marriott International (MAR) : Free Stock Analysis Report
HP Inc. (HPQ) : Free Stock Analysis Report
salesforce.com, inc. (CRM) : Free Stock Analysis Report
Booking Holdings Inc. (BKNG) : Free Stock Analysis Report
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