U.S. Markets closed

The Zacks Analyst Blog Highlights: Home Depot, Oracle, Union Pacific, Dollar General and Host Hotels

Zacks Equity Research
Markets closed the session in positive territory on Wednesday as investors were buoyed by positive developments on the U.S.- China trade war front.

For Immediate Release

Chicago, IL –March 20, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Home Depot HD, Oracle ORCL, Union Pacific UNP, Dollar General DG and Host Hotels HST.

Here are highlights from Tuesday’s Analyst Blog:

Top Analyst Reports for Home Depot, Oracle and Union Pacific

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 Home Depot, Oracle and Union Pacific. 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 >>>

Home Depot’s shares have gained +11.7% over past three months, underperforming the Zacks Retail Building Products industry’s +13.1% increase. Home Depot boasts a five-year long trend of beating earnings estimates, which continued in fourth-quarter fiscal 2018.

Despite a sales miss in the fiscal fourth quarter, the company has delivered positive sales surprise in eight out of the last 10 quarters. Results gained from strength in both Pro and DIY categories. It also benefited from efforts to provide an interconnected shopping experience to customers, with localized and innovative products, and improved productivity.

The Zacks analyst thinks the Pro segment benefits from efforts to enhance service capabilities, including the new B2B website for the Pros. Moreover, the company outlined a solid view for fiscal 2019 and reaffirmed long-term financial targets.

However, the company has suffered lower-than-expected sales and comps in the fiscal fourth quarter. Tough comparisons, hurricane-related sales gains in the prior year, and unfavorable winter weather hurt comps.

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

Shares of Oracle have outperformed the Zacks Computer Software industry in the past six months, gaining +6% vs. +3.7%. Oracle reported stellar third-quarter results. 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. Also, integration risks from buyouts remain a concern.

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

Buy-ranked Union Pacific’s shares have outperformed the Zacks Rail industry (+1.4% vs. +0.8%) over the past six months. Union Pacific reported better-than-expected earnings per share and revenues in the fourth quarter of 2018. Both the metrics also increased year over year. Higher freight revenues on the back of volume growth aided top-line growth.

For 2019, the company anticipates volumes to increase in the low single-digit range. The Zacks analyst thinks Union Pacific’s efforts to reward its shareholders are encouraging. Notably, the company has hiked dividends four times since November 2017.

Improvement in operating ratio and low tax rates are added positives. Its efforts to promote safety are noteworthy as well. However, high debt levels and operating expenses are concerns. Escalated capital expenditures are contributing to rise in costs.

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

Other noteworthy reports we are featuring today include Dollar General and Host Hotels.

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

See Latest Stocks Today >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339



Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Union Pacific Corporation (UNP) : Free Stock Analysis Report
The Home Depot, Inc. (HD) : Free Stock Analysis Report
Oracle Corporation (ORCL) : Free Stock Analysis Report
Dollar General Corporation (DG) : Free Stock Analysis Report
Host Hotels & Resorts, Inc. (HST) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research