Top Research Reports for Walmart, Alibaba & Salesforce
Friday, February 3, 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 Walmart Inc. (WMT), Alibaba Group Holding Limited (BABA) and Salesforce, Inc. (CRM). 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 >>>
Walmart shares have more than proved their defensive attributes in the market turmoil that got underway a year ago. The stock is essentially flat over the past year (up +0.2%), which compares to the -7.3% decline for the Zacks Retail sector and -8% decline for the S&P 500 index.
The company has been benefiting from its robust omnichannel operations due to its efforts to enhance both store and online experience. Walmart has been particularly gaining from its efforts to boost delivery services through acquisitions and partnerships.
The company’s U.S. comp sales continued to benefit from an increased market share in grocery in the third quarter of fiscal 2023, wherein the top and bottom lines surpassed the Zacks Consensus Estimate and increased year over year in the last quarterly release. A robust third-quarter show encouraged management to raise its overall guidance for fiscal 2023.
However, its consolidated operating income and earnings per share view still suggest a decline from the year-ago period figures. The company is encountering cost inflation, and expects it to remain elevated.
(You can read the full research report on Walmart here >>>)
Shares of Alibaba have over the last couple of months, reflecting the company's leverage to expectations of a consumer spending rebound in the wake of China ending its zero-Covid policies and associated restrictions. The stock is still down over the past year, but it is up an impressive +52% over the last three months compared to the +17.5% gain for the Zacks Retail sector and +11.2% gain for the S&P 500 index.
Alibaba’s solid momentum across China and International wholesale businesses is benefiting its China and International commerce businesses, respectively.
The Zacks analyst expects that China commerce and international commerce to be up 11.2% and 7.2% in fiscal 2023 year over year, respectively. Further, strength across the local consumer services, Cainiao logistics services, Alibaba Health and Freshippo is contributing well to the top-line growth.
Additionally, solid momentum across financial services, public services and telecommunication industries are driving the cloud computing business. Our estimates suggest cloud revenues to witness a 6.3% rise in fiscal 2023 from the year-ago reported figure.
(You can read the full research report on Alibaba here >>>)
Shares of Salesforce have underperformed the Zacks Computer - Software industry over the past year (-20.3% vs. -12.4%). The company is witnessing stiff competition is a concern. Besides, unfavorable currency fluctuations along with increasing investments in international expansions and data centers are an overhang on near-term profitability.
However, Salesforce is benefiting from a robust demand environment as customers are undergoing a major digital transformation. The rapid adoption of its cloud-based solutions is driving demand for its products. Its sustained focus on introducing more aligned products as per customer needs is driving its top-line.
Continued deal wins in the international market is another growth driver. The acquisition of Slack would position the company to be a leader in enterprise team collaboration solution space and better compete with Microsoft’s Teams product. We expect CRM revenues to grow at a CAGR of 12.5% through fiscal 2023-2025.
(You can read the full research report on Salesforce here >>>)
Other noteworthy reports we are featuring today include HCA Healthcare, Inc. (HCA), Enterprise Products Partners L.P. (EPD) and MetLife, Inc. (MET).
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
Walmart (WMT) Benefits from Impressive E-Commerce Operations
Wholesale & Cloud Businesses Momentum Aids Alibaba (BABA)
Salesforce (CRM) Rides on Portfolio Strength and Buyouts
Improving Top Line, Acquisitions Aid HCA Healthcare (HCA)
Per the Zacks analyst, HCA Healthcare's growing revenues driven by increasing admissions have led to significant growth. Strategic acquisitions have helped it expand and remain a driving factor.
Enterprise (EPD) Banks On Its $5.8B Key Midstream Projects
Per the Zacks analyst, Enterprise will generate additional fee-based revenues from its 5.8-billion key midstream projects, currently under construction. However, massive debt exposure is concerning.
MetLife's (MET) Cost-Cut Efforts & Strategic Buyouts Aid
Per the Zacks analyst, MetLife's cost-control measures are driving margins, while acquisitions are expanding its portfolio. However, weakness in EMEA business is concerning.
Cost Actions, Project Investment to Aid Dow (DOW)
Per the Zacks analyst, Dow will benefit from cost synergy savings and its investment in high-return growth projects amid headwinds from weaker demand in Europe.
Facility Expansions Aid Catalent (CTLT) Amid Stiff Competition
The Zacks analyst is upbeat about Catalent actively expanding its facilities over the past few months to boost its business despite its operation in a highly competitive market.
Air Traffic Aid Spirit Aerosystems (SPR) Amid Weak Solvency
Per the Zacks analyst, improving domestic air traffic tend to provide a boost to Spirit Aerosystems' commercial business. Yet, its weak solvency position remains a bottleneck
Silicon Motion (SIMO) Rides on Diversified Portfolio Strength
Per the Zacks analyst, Silicon Motion is likely to benefit from an expanding customer base and portfolio strength within the SSD controller business despite supply chain woes and production delays.
United Rentals (URI) Gains From Non-Residential Construction
Per the Zacks analyst, persistent growth opportunities from non-residential construction and industrials verticals bode well for United Rentals.
Ryanair (RYAAY) Gets a Boost From Upbeat Passenger Volumes
Upbeat air travel demand is driving Ryanair's top line. The Zacks analyst is also impressed with the carrier's debt-reduction efforts.
Growing Consumer Loans Aid Credit Acceptance (CACC) Top Line
Per the Zacks analyst, increase in finance charges, driven by growth in consumer loans will likely aid Credit Acceptance's revenues. Its share repurchase plan reflects a solid balance sheet.
Pfizer (PFE) Growth Drivers Beyond COVID Products a Concern
Though in 2021/2022, no company was as strongly placed in the COVID vaccines/treatment market as Pfizer, the Zacks analyst worries about long-term growth drivers beyond its COVID-related products.
High Debt Level, Tough Backdrop to Hurt SLM Corp (SLM)
Per the Zacks analyst, SLM Corp's unsound liquidity position and high debt level is concerning amid the current economic slowdown. Its overdependence on brokered deposits as a funding source is a woe.
Margin Contraction Hurt PENN Entertainment (PENN) Prospects
Per the Zacks analyst, PENN Entertainment's margins are likely to be hurt by a rise in labor and non-gaming costs. During the fourth quarter, adjusted EBITDAR margin contracted 110 basis points YoY.
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Salesforce Inc. (CRM) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report
MetLife, Inc. (MET) : Free Stock Analysis Report
HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
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