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Top Stock Research Reports For Microsoft, UPS, Alibaba & Others

Published 06/02/2017, 01:16 AM
Updated 07/09/2023, 06:31 AM

Friday June 2, 2017

The Zacks Research Daily presents the best research output of our analyst team. Today's version features new research reports on 16 major stocks, including Microsoft (MSFT), United Parcel (UPS) and Alibaba (NYSE:BABA).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 >>>

Microsoft shares lagged the Zacks Tech sector through the fall, but have led the way over the last six months (up +20.3% versus +16.5%) on greater appreciation for the company's reorganization and repositioning. The Zacks analyst stress that Microsoft is benefiting from continuing enterprise strength, strong Office 365 adoption and robust penetration of Azure (the company's cloud offering). Further, the addition of LinkedIn (NYSE:LNKD) has improved the company's presence in the social media market. The recently announced Dies acquisition and investment in Flipkart are other positives. All in all, the company has emerged as a leader in the cloud space that promises momentum on a number of fronts. (You can read the full research report on Microsoft here >>>).

Shares of United Parcel gained +4.4% in the last one year, underperforming the Zacks Transportation-Air Freight industry’s gain of 7.4% in the period. Shares of UPS have lagged those of rival FedEx (NYSE:FDX), which have gained 21.1% in the same time span, by a substantial margin. United Parcel is still troubled by headwinds like higher costs and foreign exchange-related issues. But the Zacks analyst likes the company's efforts to reward shareholders. To this end, it hiked its quarterly dividend earlier this year. Moreover, United Parcel Service (NYSE:UPS)'s expansion-related efforts raise optimism about the stock. (You can read the full research report on United Parcel here >>>).

Alibaba shares have outperformed the broader market as well as the peer e-commerce space over the last one year (it is up more than +61.9%), with the trend expected to remain in place given continued growth in its core e-commerce business and growing cloud computing services. The company’s fiscal fourth-quarter revenues beat expectations while earnings fell short. The Zacks analyst likes the company’s dominance in China's mobile commerce market, efforts to develop new products, international growth opportunities, strong financial position and growing cloud computing services. On the flip side, the need for continued infrastructure investments, growing competition and increasing competition from Tencent Holdings and Baidu remain major overhangs. (You can read the full research report on Alibaba here >>>).

Other noteworthy reports we are featuring today include Goldman Sachs (GS), Aflac (AFL) and Nike (NYSE:NKE).

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Sheraz Mian

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>>>

Featured Reports

NRG Energy (NYSE:NRG) Continues Cost Savings, Competition a Woe

The Zacks analyst believes NRG Energy's ongoing cost savings will boost its margin, but rising competition in the wholesale markets could have an adverse impact on performance.

Dollar General (DG) Store Acquisitions to Drive Sales Higher

The covering analyst thinks the buyout of small multi-price point retail stores will boost Dollar General's sales.

Palo Alto Networks (PANW) Rides on Product Upgrades, Buyouts

Though risks persist, the Zacks analyst believes that Palo Alto Networks' consistent focus on product refreshes and strategic acquisitions will boost revenues over the long run.

Strong Memory, Foundry & Logic Aiding Lam Research (NASDAQ:LRCX)

The covering analyst believes that Lam's exposure to memory manufacturers (a segment with multi-year growth prospects), and opportunity in logic and foundry segments are positives.

Ecolab's (NYSE:ECL) Innovations Raise Hopes Despite Global Energy Performance

The Zacks analyst is concerned about Ecolab's lackluster performance in the Global Energy segment over last few quarters.

Deere's (DE) Wirtgen Buy Opens Avenues in Road Construction

The Zacks analyst expects Deere's Wirtgen buy to expand its North American centric construction business to a global scale.

General Mills' (NYSE:GIS) Initiatives to Spur Growth

General Mills has been struggling because of the shift in consumer preference toward natural and organic food. Per the Zacks analyst, solid restructuring savings is making up for slower revenue growth.

New Upgrades

Sargent Buyout to Lift RBC Bearings' (ROLL) Future Earnings

The Zacks analyst thinks ongoing integration of Sargent will boost RBC Bearings' near-term earnings, while rise in cash flows would likely lower debt burden in the quarters ahead.

Aflac (AFL) Grows on Business, Product Portfolio Alignment

According to the covering analyst, Aflac's emphasis on sale of third-sector products, pull back of first-sector products and launch of new products will drive growth.

Hill-Rom (HRC) Rides High on Innovations & Raised 2017 View

Per the Zacks analyst, Hill-Rom is growing on its recent product launch of its surgical beds and is expected to be on a solid growth trail in the near term. Its raised 2017 view also buoys optimism.

New Downgrades

Sluggish Mall Traffic Remains a Hurdle for Zumiez (ZUMZ)

Per the Zacks analyst, Zumiez continues to battle soft mall traffic and shifting consumer spending pattern. The company's soft first-quarter results compelled it to issue a bleak second-quarter view.

Regulatory Woes & Litigation Issues Linger for Goldman (GS)

As per the covering analyst, strict regulations and legal issues remain a concern for Goldman. Further, challenging environment depicting lower client activity levels add to the woes.

Nike's (NKE) Soft Top Line Continues to Weigh on Sentiment

Per the Zacks analyst, Nike's top line is facing stiff competition over its basketball shoes and a tough retail backdrop. These factors also led to a soft sales outlook for fiscal fourth quarter.



United Parcel Service, Inc. (UPS): Free Stock Analysis Report

Nike, Inc. (NKE): Free Stock Analysis Report

Microsoft Corporation (NASDAQ:MSFT): Free Stock Analysis Report

Goldman Sachs Group, Inc. (The) (NYSE:GS): Free Stock Analysis Report

Alibaba Group Holding Limited (BABA): Free Stock Analysis Report

Aflac Incorporated (NYSE:AFL): Free Stock Analysis Report

Original post

Zacks Investment Research

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