Yahoo Finance Top Stock Reports for Microsoft, Booking Holdings & Bristol-Myers Squibb
Wednesday, December 20, 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 Microsoft Corp. (MSFT), Booking Holdings Inc. (BKNG) and Bristol-Myers Squibb Co. (BMY). 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’s shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+57.0% vs. +56.5%). The company is riding on strong growth from Intelligent Cloud and Productivity and Business Processes. Intelligent Cloud revenues have been driven by growth in Azure and other cloud services.
Productivity and Business Processes revenues continues to increase due to strong adoption of Office 365 Commercial solutions. Continued momentum in the small and medium businesses and frontline worker offerings, as well as gain in revenue per user drove top-line growth.
However, More Personal Computing revenues are suffering from continued weakness in Windows and Devices businesses. Steady performance in Talent Solutions aided LinkedIn revenues. However, declining gaming revenues has been a headwind. Increasing spend on Azure enhancements amid stiff competition in the cloud space remains a concern.
(You can read the full research report on Microsoft here >>>)
Shares of Booking Holdings have outperformed the Zacks Internet - Commerce industry over the year-to-date period (+74.4% vs. +56.5%). The company is benefiting from substantial improvement in its booking trends. Growing demand for travel and solid momentum in booked room nights are driving growth in the gross bookings.
Further, strong global leisure travel demand is a plus. Furthermore, solid momentum across merchant, advertising and other businesses is a major positive. Additionally, strong growth in rental car and airline ticket units is acting as a tailwind. For 2023, the company expects more than 20% year-over-year growth in gross bookings.
Additionally, strengthening alternative accommodation business and flight capabilities are a positive. However, weakness in agency bookings is a headwind. Further, intensifying competition remains a major concern.
(You can read the full research report on Booking Holdings here >>>)
Shares of Bristol-Myers Squibb have underperformed the Zacks Medical - Biomedical and Genetics industry over the year-to-date period (-25.0% vs. -15.8%). The company’s performance in 2023 was disappointing. Growth in Opdivo and its new product portfolio (primarily Opdualag, Reblozyl and Zeposia) is being offset by declining revenues due to generic competition for Revlimid and Eliquis (outside the United States).
Nevertheless, the label expansion of Opdivo for first-line lung cancer, bladder cancer and gastric cancer continues to boost sales. The approval of drugs like Opdualag, Reblozyl, Breyanzi and Sotyktu diversifies its revenue base. The impending acquisition of Mirati Therapeutics will strengthen its oncology portfolio.
However, the company now expects its current new-product portfolio to generate $10 billion in revenues by 2026, which was earlier anticipated by 2025. Generic competition for key drugs will remain a headwind.
(You can read the full research report on Bristol-Myers Squibb here >>>)
Other noteworthy reports we are featuring today include Equifax Inc. (EFX) Bayer HubSpot, Inc. (HUBS) and First Solar, Inc. (FSLR).
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
Adoption of Cloud & Office 365 Strength Aid Microsoft (MSFT)
Solid Gross Bookings Momentum Aids Booking Holdings (BKNG)
Opdivo, New Drugs Fuel Bristol (BMY) Amid Generic Competition
Featured Reports
Equifax (EFX) Gains from Strategic Buyouts, Seasonality Woes Ail
Per the Zacks analyst, Equifax's acquisitions supplement its core business and enable the company to improve its offerings. Equifax is exposed to seasonality, which affects its revenue streams.
HubSpot (HUBS) Will Likely Gain from Clearbit Buyout, AI Focus
Per the Zacks analyst, the integration of Clearbit's vast information pool with HubSpot AI will foster the development of next generation AI capabilities, likely boosting HubSpot's commercial prospect
Solid Production Aids First Solar (FSLR), Tariff Impact Woes
Per the Zacks analyst, growing module production will strengthen First Solar's position in the U.S. solar market. Yet U.S. imposed import tariff on China's solar cells may hurt the stock.
Paramount (PARA) Banks on Paramount+, Streaming Portfolio
Per the Zacks analyst, Paramount Global is benefiting from strong viewership for its solid portfolio of streaming services including Paramount+ and PlutoTV.
Range Resources (RRC) Banks on Prolific Appalachia Resources
Range Resources will benefit from its diversified asset portfolio spread across low-risk, long reserve-life Appalachian assets. Yet, its significant debt exposure concerns the Zacks analyst.
Growing Revenues Aid Euronet (EEFT), Escalating Costs Hurt
Per the Zacks analyst, Euronet's rising topline driven by well-performing segments and diversity across products will pave the way for growth. However, high costs are likely to strain margins.
Restructuring Supports Hilltop Holdings (HTH) Amid Cost Woes
Per the Zacks analyst, Hilltop Holdings' restructuring efforts to diversify business as a profitable banking operation are impressive. Higher costs due to investments in franchise might hurt profits.
New Upgrades
HealthEquity (HQY) Continues to Gain From Its Business Model
The Zacks analyst is upbeat about HealthEquity's business model, which is based on a business-to-business-to-consumer distribution strategy, despite its operation in a highly competitive space.
GameStop (GME) is Benefiting from Enhanced Digital Solutions
Per the Zacks analyst, GameStop's strategic shift is evolving from retail to tech powerhouse with enhanced digital solutions, financial resilience and the recent collaboration with Microsoft.
G-III Apparel (GIII) Gains From Licensing & Brand Strength
Per the Zacks analyst, G-III Apparel undertakes several strategies, including acquisitions and licensing of well-known brands, to expand product portfolio. Its brand strength also bodes well.
New Downgrades
Low Volumes & Elevated Costs to Hurt Timken (TKR)
Per the Zacks analyst, low volumes as customers continue to lower their inventory levels as well as higher manufacturing and other costs will weigh on Timken's results.
Escalating Costs and Forex Woes Hurt Johnson Controls (JCI)
Per the Zacks analyst, Johnson Controls is struggling with high commodity costs, which in turn, are hurting the company's bottom line. Forex woes are an added concern for the company.
Weak Consumer Demand & High Costs Ail Leggett's (LEG) Growth
Per the Zacks analyst, weak consumer demand in residential markets and ongoing macroeconomic volatility are affecting Leggett's growth prospects. Also, high costs and expenses are denting margins.
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Microsoft Corporation (MSFT) : Free Stock Analysis Report
Bristol Myers Squibb Company (BMY) : Free Stock Analysis Report
First Solar, Inc. (FSLR) : Free Stock Analysis Report
Equifax, Inc. (EFX) : Free Stock Analysis Report
HubSpot, Inc. (HUBS) : Free Stock Analysis Report
Booking Holdings Inc. (BKNG) : Free Stock Analysis Report
