Yahoo Finance Top Analyst Reports for Oracle, Booking Holdings & Charles Schwab
Wednesday, November 1, 2023
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 Corporation (ORCL), Booking Holdings Inc. (BKNG) and The Charles Schwab Corporation (SCHW). 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 Oracle have gained +28.4% over the year-to-date period against the Zacks Computer - Software industry’s gain of +38.7%. The company is benefiting from the ongoing momentum across its cloud business, driven by the strong uptake of Oracle Cloud Infrastructure and Autonomous Database offerings.
Solid adoption of cloud-based applications, comprising NetSuite Enterprise Resource Planning (ERP) and Fusion ERP bodes well. Oracle’s Gen 2 Cloud is delivering better performance at a lower cost due to high bandwidth and low-latency RDMA networks. Partnerships with VMWare and Microsoft is helping Oracle win new clientele.
ORCL is launching a generative AI cloud service for enterprise customers. Its share buybacks and dividend policy are noteworthy. However, higher spending on product enhancements, especially toward the cloud platform, amid increasing competition in the cloud domain is likely to limit margin expansion.
(You can read the full research report on Oracle here >>>)
Booking Holdings shares have outperformed the Zacks Internet - Commerce industry over the year-to-date period (+38.4% vs. +34.6%). The company is benefiting from a substantial improvement in booking trends driven by growing demand for travel. This, in, turn, is helping lower cancellation rates.
Booking Holdings expects room night growth to increase at a low double-digit rate on a year-on-year basis in the third quarter. Solid growth in domestic bookings is driving growth. The company is experiencing solid momentum in international regions, which is a positive. Strong growth in rental cars, airline ticket units and booked room nights is another positive.
Solid momentum across the agency, merchant, advertising and other businesses is a tailwind. Further, strengthening alternative accommodation business and flight capabilities are major positives. However, intensifying competition is a headwind.
(You can read the full research report on Booking Holdings here >>>)
Shares of Charles Schwab have outperformed the Zacks Financial - Investment Bank industry over the past six months (+4.8% vs. -4.4%). The company’s inorganic growth efforts, expenses are expected to remain elevated, thus hurting the bottom line to an extent.
Schwab’s trading revenues are expected to be under pressure in the near term amid the uncertain market conditions. Nevertheless, Schwab's acquisitions, likely to be earnings accretive, have reinforced its position as a leading brokerage player.
Offering commission-free trading has led to a rise in client assets and brokerage accounts. Amid high interest rates, margins will likely grow.
(You can read the full research report on Charles Schwab here >>>)
Other noteworthy reports we are featuring today include Palo Alto Networks, Inc. (PANW), Chipotle Mexican Grill, Inc. (CMG) and Phillips 66 (PSX).
Director of Research
Sheraz Mian
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
Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships
Solid Gross Bookings Momentum Aids Booking Holdings (BKNG)
Strategic Acquisitions Aid Schwab (SCHW) Amid Cost Concerns
Featured Reports
Palo Alto (PANW) Rides on Shift to Subscription Services
Per the Zacks analyst, Palo Alto Networks' focus on selling more subscription-based services is helping the company generate stable revenues and higher margins.
Strong Comps & Digital Efforts Aid Chipotle (CMG), High Cost Ail
Per the Zacks analyst, Chipotle (CMG) benefits from strong comparable restaurant sales growth, digital initiatives, and expansion efforts. However, commodity and wage inflation are a concern.
Phillips 66 (PSX) to Gain From Higher Distillate Fuel Demand
Phillips 66 is well-poised to benefit from higher distillate fuel demand amid changes in the marine fuel sulfur limits. Yet, its higher debt exposure concerns the Zacks analyst.
Prudent Buyouts Fuel Hershey (HSY), High Costs a Trouble
Per the Zacks analyst, Hershey is set to keep benefiting from strategic acquisitions. However, increased selling, marketing and administrative expenses is a concern for the company.
Diverse Clientele Aid Avis Budget (CAR) amid high competition
Per the Zacks analyst, Avis Budget serves different market segments through separate brand names which helps it expand it's global footprints. Increased market presence invites amplified competition.
HealthEquity (HQY) Rides on Its Unique Investment Platform
The Zacks analyst is upbeat about HealthEquity's multiple cloud-based platforms despite its operation in a highly competitive Medical Services market.
Growing Revenues, Acquisitions Aid Tenet Healthcare (THC)
Per the Zacks analyst, Tenet Healthcare's rising top line, driven by higher adjusted admissions and surgeries, will pave the way for growth. Acquisitions enable it to expand its capabilities.
New Upgrades
Solid Booking Levels & Cost-Controls Aid Flowserve (FLS)
The Zacks analyst is optimistic about Flowserve's record booking levels due to strong MRO and aftermarket activity. Cost-saving efforts are expected to drive the company's bottom line.
Badger Meter (BMI) Benefits From Strong Product Portfolio
Per the Zacks analyst, Badger Meter's performance benefitted from strong revenue growth across all business segments. Also, improving operating environment is a tailwind.
Investments, Cost-Effective Power Aid PNM Resources (PNM)
Per the Zacks analyst, PNM Resources' investment of $5.9 billion through 2027, will increase reliability of its operations. Its initiative to provide affordable power will drive its performance.
New Downgrades
Sanofi (SNY) Profits to Fall in 2024 on Higher R&D, Taxes
The Zacks analyst believes Sanofi's profit outlook for 2024 was disappointing. Sanofi expects adjusted earnings to decline in the low-single-digit range in 2024 due to higher R&D costs and taxes.
Weak Industrial Segment and Increasing Costs Ail Barnes (B)
Per the Zacks analyst, Barnes is experiencing softness in the Industrial unit due to ongoing United Auto Workers strike within the motion control solutions business. High costs are an added concern.
Inflation led Dismal Demand Ails Aaron's (AAN) Performance
Per the Zacks analyst, Aaron's softness in customer demand in its core product categories stemming from continued inflation and other macroeconomic factors are likely to dent 2023 performance.
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Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
Oracle Corporation (ORCL) : Free Stock Analysis Report
Phillips 66 (PSX) : Free Stock Analysis Report
Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
Booking Holdings Inc. (BKNG) : Free Stock Analysis Report
