MSFT Stock – Top Stock Reports for Microsoft, JPMorgan & Honeywell
Monday, April 19, 2021
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 Microsoft (MSFT), JPMorgan Chase (JPM), and Honeywell International (HON). 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 >>>
Shares of Microsoft have slightly underperformed the S&P 500 over the past year (+48.5% vs. +51.2%). The Zacks analyst believes that Microsoft is benefiting from momentum in Azure, impressive Teams user growth triggered by coronavirus-led digital transformation, work-from-home, online learning wave and tele healthcare trends.
Further, the company is gaining from growing user base of its different applications including Microsoft 365 suite, and Dynamics. However, macroeconomic weakness in job market and lower spend on advertising due to coronavirus pandemic are likely to put pressure on LinkedIn and Search revenues.
Moreover, delays in consulting business are anticipated to limit growth. Increasing expenditure on Azure enhancements amid stiff competition from Amazon Web Services, is likely to impede margin expansion.
(You can read the full research report on Microsoft here >>>)
JPMorgan’s shares have gained +51.8% over the last six months against the Zacks Major Regional Banks industry’s gain of +57.2%. The Zacks analyst believes that branch openings in new regions, inorganic expansion efforts and a strong mortgage banking business are likely to keep supporting financials.
While the Fed’s accommodative policy and near-zero rates are expected to hurt interest income and margins, gradual economic recovery will likely lead to rise in demand for loans. However, coronavirus-induced economic downturn has not only hampered business activities but also continues to hurt loan demand.
Its impressive capital deployments reflect earnings strength and solid balance sheet. These capital deployment actions are likely to enhance shareholder value.
(You can read the full research report on JPMorgan here >>>)
Shares of Honeywell have gained +11% in the past three months against the Zacks Diversified Operations industry’s gain of +10.7%. The Zacks analyst believes that strength in defense and space businesses as well as solid demand for warehouse automation products are likely to boost Honeywell’s revenues in the quarters ahead.
Also, strong demand for personal protective equipment, along with a strong backlog conversion rate, will act as major tailwinds. Furthermore, increased commercial and operational excellence initiatives are likely to improve its near-term profitability.
The company believes that the coronavirus outbreak-led market downturn and weak commercial aerospace will adversely impact its near-term results. Given its extensive geographic presence, its business is subject to political, economic and geopolitical risks.
(You can read the full research report on Honeywell here >>>)
Other noteworthy reports we are featuring today include Adobe (ADBE), Novo Nordisk (NVO) and Starbucks (SBUX).
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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
Microsoft (MSFT) Rides on Adoption of Azure & Teams App
New Branches, Strategic Expansion Aid JPMorgan (JPM) Growth
Intelligrated Unit Drives Honeywell (HON), Weak Demand Ails
Adobe (ADBE) Rides on Creative Strength; Expenses A Concern
The Zacks analyst believes that Adobe’s creative cloud business contributes significant revenues and generates high margins. However, higher expenses and exposure to Europe remain overhangs.
Novo Nordisk’s (NVO) Diabetes Drugs Aid Growth Amid Rivalry
Per the Zacks analyst, Novo Nordisk has a strong presence in the Diabetes Care market which is driving growth.
Store Growth to Aid Starbucks (SBUX), Traffic Woes Stay
Per the Zacks analyst, Starbucks’ rapid unit growth, best-in-class loyalty program and digital offerings bode well. However, dismal traffic owing to the pandemic might hurt the company’s performance.
Ondot Systems Buyout Aids Fiserv (FISV), High Debt Ails
The Zacks analyst is optimistic about Ondot Systems acquisition that enhances Fiserv’s digital capabilities and strengthens its competitive position.
ConocoPhillips (COP) Banks on Oil-Rich Permian Footprint
The Zacks analyst expects ConocoPhillips to boost production from lucrative oil-resources in the prolific Permian Basin.
Rising Top-line Aid, High Debts Hurt HCA Healthcare (HCA)
Per the Zacks analyst, its growing top-line driven by increasing admissions has led to significant growth of the company.
Debt Reductions, Randgold Acquisition Aid Barrick (GOLD)
While Barrick faces headwind from higher costs, it will benefit from actions to de-leverage its balance sheet and synergies from the Randgold acquisition, per the Zacks analyst.
Solid Growth in Vault Platform Aids Veeva Systems (VEEV)
The Zacks analyst believes, Veeva Systems continues to benefit from its flagship Vault platform. The company’s unique solutions include Veeva Vault, Veeva CRM, Veeva Network, and Veeva OpenData.
Rise in Loans to Aid Commerce Bancshares’ (CBSH) Top Line
Per the Zacks analyst, growth in loans will likely aid Commerce Bancshares’ revenues amid the Federal Reserve’s accommodative policy stance. Its capital deployments indicate a solid balance sheet.
Strategic Buyouts, Reducing Costs Aid Community Health (CYH)
Per the Zacks analyst, several buyouts have helped the company boost its portfolio, aiding its top-line. Moreover, its reducing expenses on the back of its planned business rejig also contributes.
Bayer (BAYRY) is Facing Generic Competition which is a Woe
Per the Zacks analyst, Bayer is facing generic competition for many of its products, including the Yaz franchise. Heavy dependence on its pharmaceutical segment for growth remains a concern too.
Weak Auto Production, Competition Hurt TE Connectivity (TEL)
Per the Zacks analyst, TE Connectivity’s transportation, communications, and industrial solutions are aiding its top-line growth. But, rising competition in the electronic components market is a risk.
Sluggish Gross Margin Remains a Worry for Best Buy (BBY)
Per the Zacks analysts, Best Buy’s gross margin has been hurt by high supply chain costs, as witnessed in fiscal fourth-quarter 2021.
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Starbucks Corporation (SBUX): Get Free Report
Novo Nordisk AS (NVO): Free Stock Analysis Report
Microsoft Corporation (MSFT): Get Free Report
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Honeywell International Inc. (HON): Free Stock Analysis Report
Adobe Inc. (ADBE): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
MSFT Stock – Top Stock Reports for Microsoft, JPMorgan & Honeywell
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