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The Zacks Analyst Blog Highlights: Oracle, Roche, Goldman Sachs, Capital One and Intercontinental Exchange

Zacks Equity Research
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For Immediate Release

Chicago, IL –September 13, 2018 – 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: Oracle ORCL, Roche RHHBY, Goldman Sachs GS, Capital One COF and Intercontinental Exchange ICE.

Here are highlights from Wednesday’s Analyst Blog:

Top Stock Reports for Oracle, Roche and Goldman Sachs

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, Roche and Goldman Sachs. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

Oracle’s shares have underperformed the Zacks Computer Software industry so far this year, gaining +3.5% vs. +26%. 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 thinks the company’s growing cloud market share will continue to drive top-line growth in the long haul. 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.

Nevertheless, 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 concerns about the company's outlook.

Shares of Strong Buy-rated Roche have outperformed the Zacks Large Cap Pharmaceuticals industry in the past three months, gaining +15% vs. an increase of +9.8%. The Zacks analyst thinks Roche’s performance is being buoyed by strong sales of Ocrevus, Perjeta, Tecentriq and Alecensa which more than offset the decline from legacy drugs Rituxan, Avastin and Tarceva. 

In particular, MS drug Ocrevus continues to witness strong growth, driven by increased demand. Meanwhile, the company continues to progress with its pipeline as it looks to restructure its portfolio beyond oncology into MS and hemophilia among others. The recent Ignyta acquisition will further strengthen pipeline.

Approval of new drugs and a potential label expansion of existing drugs bode well for Roche, as its legacy drugs like Herceptin and MabThera are facing competition from biosimilars. Avastin and Tarceva are also facing competition. Roche is also looking to restructure its operations for better efficiency.

Goldman Sachs’ shares have lost -9.7% year to date, underperforming the -5.1% decline of the Zacks Investment Banking industry. However, the company boasts an impressive earnings surprise history. It surpassed expectations for earnings in all the trailing four quarters.

The Zacks analyst thinks the company’s well-diversified business and focus to capitalize on growth opportunities through strategic moves will continue to strengthen the overall business. Further, its cost-control measures are commendable.

Additionally, the company’s steady capital-deployment activities have boosted investors' confidence, along with the Fed's approval to 2018 Capital Plan. However, litigation issues yet to be resolved remain a key concern. Also, declining revenues from Institutional Client Services division impact the company's topline.

Other noteworthy reports we are featuring today include Capital One and Intercontinental Exchange.

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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.

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Roche Holding AG (RHHBY) : Free Stock Analysis Report
Oracle Corporation (ORCL) : Free Stock Analysis Report
Capital One Financial Corporation (COF) : Free Stock Analysis Report
The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report
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