Top Research Reports for Oracle, Cisco & Netflix

Tuesday, March 17, 2020

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 (ORCL), Cisco Systems (CSCO) and Netflix (NFLX). 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 >>>

Oracle’s shares have underperformed the Zacks Computer Software industry over the past six months (-18.7% vs. -9.4%). The Zacks analyst believes that strong demand for the latest autonomous database supported by ML is anticipated to drive the top line and provide the company a competitive edge against Amazon Web Services (AWS) in the Database-as-a-Service market.

Oracle's fiscal third-quarter performance benefited from strong adoption of cloud-based solutions, comprising NetSuite ERP, Fusion ERP and Fusion HCM among others. Further, momentum witnessed in cloud services is a key upside.

Going ahead, the company is expected to reap benefits from rising adoption of SaaS. However, stiff competition in the cloud market from dominant players is expected to put pressure on profitability. Further, lower hardware volumes are likely to hurt the top line.

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

Shares of Cisco have lost 37% over the past year against the S&P 500’s fall of 16.6%. The Zacks analyst believes that Cisco is benefiting from solid security business. Increasing demand for collaborative solutions, which includes WebEx Teams, post the coronavirus outbreak is positive.

Moreover, a strong uptake of Catalyst 9000 family of switches and Nexus 9K solutions is a key catalyst. Integration with Microsoft Azure, Office 365 and Amazon Web Services is expected to fortify footprint in the cloud space. Despite a grim third-quarter fiscal 2020 outlook, the company’s differentiated end-to-end approach across the network, cloud and endpoints is a major driver for the rest of fiscal 2020.

Lower customer spending, China-related weakness and a growing global economic uncertainty due to the unabated spread of coronavirus are major headwinds.

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

Netflix’s shares have lost 6.9% over the past three months against the Zacks Broadcast Radio and Television industry’s fall of 23.6%. The Zacks analyst believes that the launch of low-priced mobile plans in India, Indonesia, Malaysia, Philippines and Thailand is expected to expand its subscriber base in the Asia Pacific.

Netflix is expected to benefit from an expanding content portfolio despite increasing competition from the likes of HBO, Amazon prime video, Disney+ and Apple TV+. Expanding bundle offerings through partnerships with Telefonica, KDDI, AT&T, Comcast, DISH, Verizon, Charter, Altice, T-Mobile and Sky are a key catalyst.

However, management expects net additions in the paid subscriber base to decline in first-quarter 2020. Moreover, high streaming content obligation and increased spending are expected to hurt free cash flow generation.

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

Other noteworthy reports we are featuring today include GlaxoSmithKline (GSK), Fidelity National Information Services (FIS) and Crown Castle International (CCI).

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Mark Vickery
Senior Editor

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 Security & Cloud Portfolio Aids Cisco's (CSCO) Growth

Robust Content Aids Netflix (NFLX) Amid Stiff Competition

Featured Reports

Glaxo's (GSK) Pipeline Growing Amid Generic Woes for Advair

In 2020, Glaxo expects six potential approvals in oncology, HIV, and respiratory areas. However, generic erosion of its top-selling drug, Advair is hurting the overall topline, per the Zacks analyst.

Acquisitions Support Fidelity (FIS) Amid Increasing Expenses

Per the Zacks analyst, Fidelity's planned buyout of Worldpay will help diversify revenues and expand presence in fast growing markets.

Focus on Fiber Business to Stoke Crown Castle's (CCI) Growth

Per the Zacks Analyst, Crown Castle's efforts to expand its fiber business will boost long-term results.

Expansion Strategy Aids Equinix (EQIX) Amid Stiff Competition

Per the Zacks Analyst, acquisitions and expansions will boost Equinix's data-center footprint, while stiff competition might likely curb its pricing power.

Customer Additions & Inorganic Growth Aid America Movil (AMX)

Per the Zacks analyst, America Movil benefits from mobile postpaid subscriber additions in Brazil, Mexico and Colombia.

Application Software Drives Roper (ROP), High Costs Ail

Per the Zacks analyst, solid traction of Roper's Application Software segment, driven by growing adoption of SaaS offerings, will lend momentum to the company.

Acquisitions to Aid Johnson Controls (JCI) Amid Rising Costs

Per the Zacks Analyst, the firm's buyout of Synchrony and EasyIO Building and Energy Management System are likely to boost prospects amid high commodity costs and currency headwinds.

New Upgrades

Cobre Panama, High Gold Prices Aid Franco-Nevada (FNV)

Per the Zacks Analyst, Franco-Nevada will gain from higher gold prices, focus on cost management and its healthy portfolio of streaming and royalty agreements particularly the Cobre Panama project.

Product Launches as Well as Osprey Buyout Aid Phibro (PAHC)

The Zacks analyst is optimistic about Phibro's buyout of Osprey, which has already started to strongly contribute to the top line.

Solid Collectibles Business to Lift GameStop's (GME) Sales

Per the Zacks analyst, GameStop's collectibles sales category buoyed by expansion of licensed merchandise offerings has been profitable for the past few quarters.

New Downgrades

Yum! Brands (YUM) Hurt by High Operating Cost & Dismal Sales

Per the Zacks analyst, increase in the cost of employee wages, along with rent and energy costs are likely to affect company's margins. Also decline in Pizza Hut same-stores sales is concerning.

Weak Oil Prices to Weigh on Concho Resources (CXO)

The Zacks analyst believes that the oil plunge has left Concho Resources facing prices below their costs of production. As a result, the company appears unlikely to fund its operations.

Oil Collapse, Lower Output to Weigh on Diamondback (FANG)

The Zacks analyst believes the sub-$30 oil price will make it difficult for Diamondback to fund operations. Lower than expected crude output on account of reduced activity levels is also a concern.

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Oracle Corporation (ORCL) : Free Stock Analysis Report
 
Netflix, Inc. (NFLX) : Free Stock Analysis Report
 
GlaxoSmithKline plc (GSK) : Free Stock Analysis Report
 
Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report
 
Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
 
Crown Castle International Corporation (CCI) : Free Stock Analysis Report
 
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