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Top Stock Reports for Microsoft, Danaher & Raytheon Technologies

Wednesday, September 21, 2022

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 Corporation (MSFT), Danaher Corporation (DHR) and Raytheon Technologies Corporation (RTX). 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 have declined -18.3% over the past year against the Zacks Computer - Software industry’s decline of -25.6%, reflecting the dominance of its Azure cloud platform amid accelerated global digital transformation. That said, the company’s increasing spend on Azure enhancements amid stiff competition in the cloud space from Amazon is likely to dent margins.

Teams’ user growth is gaining from continuation of remote work and mainstream adoption of hybrid/flexible work model. Recovery in advertising and job market boosted LinkedIn and Search revenues. Solid uptake of new Xbox consoles is aiding the gaming segment performance.

The company is witnessing growth in user base of its different applications including Microsoft 365 suite, Dynamics and Power Platform. Microsoft expects Surface revenues to grow in the mid-teens range, driven by strong demand for premium devices.

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

Danaher shares have declined -14.2% over the past year against the Zacks Diversified Operations industry’s decline of -26.5%. Danaher’s diversified business structure allows it to mitigate risks in one end market with strength across the others. Danaher also stands to benefit from Danaher Business System (DBS), healthy rewards to its shareholders, buyout benefits and product innovation in the quarters ahead.

Also, solid traction of Danaher’s Life Sciences business, fueled by healthy demand for bioprocessing products, may drive its revenues in the quarters ahead. The company’s measures to reward its shareholders are encouraging.

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

Raytheon Technologies shares have outperformed the Zacks Aerospace - Defense Equipment industry over the past year (+2.3% vs. -3.6%). The company continues to receive ample orders for its combat-proven defense products from the Pentagon. A steady recovery in commercial air traffic has been boosting commercial OEM as well as commercial aftermarket sales for Raytheon in the recent times.

It achieved $80 million of incremental merger synergies in the second quarter and aims at achieving $335 million of incremental cost synergies during 2022. The stock holds a solid solvency position.

Yet, economic sanctions imposed by governments in response to Russia’s invasion in Ukraine might hurt Raytheon. A comparative analysis of its trailing 12-month Price/Book ratio reflects a relatively gloomy picture. Purchase order declines, with original equipment manufacturer customers delaying orders, pose a risk to the stock.

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

Other noteworthy reports we are featuring today include Stryker Corporation (SYK), ICICI Bank Limited (IBN), and Vale S.A. (VALE).

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>>>

Today's Must Read

Adoption of Azure & Office 365 Strength Aids Microsoft (MSFT)

Life Sciences Business Drives Danaher (DHR), High Costs Ail

Order Growth Aids Raytheon (RTX), Sanction Impacts Hit

Featured Reports

Stryker's (SYK) Mako Driving Growth Amid Pricing Pressure
Per the Zacks analyst, Stryker's flagship Mako Total Knee platform and a diversified product portfolio support the growth of its business. However, unfavorable pricing environment hindering sales grow

Retail Loan Growth Aid ICICI Bank (IBN), High Costs a Woe
Per the Zacks analyst, ICICI Bank is poised for growth supported by continued rise in retail loans and a stable funding base. Higher costs due to investments in technology will likely hurt profits.

Investments, Cost Control to Aid Vale (VALE) Amid Low Prices
Per the Zacks analyst, investment in growth projects, focus on improving quality and productivity and lowering costs will fuel Vale's growth despite the current backdrop of low iron ore prices.

Marathon (MPC) Gains from Sale of Speedway Retail Unit
The Zacks analyst likes Marathon's sale of Speedway business, which provided a much-needed cash infusion and came with a supply agreement ensuring a steady revenue stream.

Corning (GLW) Rides on Fiber Optic, Glass Substrate Demand
Per the Zacks analyst, Corning is likely to benefit from solid demand trends for fiber optic solutions, healthcare packaging materials and scratch-resistant durable glass composite products.

Alkermes' (ALKS) Marketed Drugs Aid Growth Amid Stiff Rivalry
Per the Zacks analyst, Alkermes' strong product portfolio and pipeline progress have been impressive. However, stiff competition in the target market remains major a concern.

Inter Parfums' (IPAR) Sales Gain on Solid Brand Performance
Per the Zacks analyst, Inter Parfums' sales are benefiting from solid brand growth, which continued in the second quarter of 2022. Net sales of $244.7 million rose 18% year over year in the quarter.

New Upgrades

Domestic Focus, Buyout Aid NextEra Energy Partners (NEP)
Per the Zacks analyst NextEra Energy Partners' (NEP) focus on domestic renewable operations and expand the same through strategic acquisitions will continue to boost performance.

Tenet (THC) to Gain From Declining Costs & Strategic Buyouts
Decreasing operating expenses will drive Tenet Healthcare's margins in the days ahead, believes the Zacks analyst. Also, acquisitions and strategic alliances are growing its scale of business.

AXIS Capital (AXS) Set to Grow on Improved Portfolio Mix
Per the Zacks analyst, AXIS Capital continues to build on Specialty Insurance, Reinsurance plus Accident and Health. Improved portfolio mix and effective capital deployment should pave way for growth.

New Downgrades

Softness in Global Volume Hampers FedEx's (FDX) Prospects
The sharp decline in shipping demand, particularly in Asia and Europe, is a major headwind to FedEx. Shrinking e-commerce demand is another bane, per the Zacks analyst.

Turnarounds, Higher Raw Material Costs Ail Dow (DOW)
Per the Zacks analyst, higher raw material and energy costs will exert pressure on the company's margins. It also faces headwind from increased plant turnaround costs.

Continued Inflationary Pressure, Affordabilty Issues Ail NVR
Per the Zacks analyst, industry-wide supply chain issues, inflationary pressure and municipal delays are concerning NVR. Also, affordability issues are impacted demand.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Stryker Corporation (SYK) : Free Stock Analysis Report
Danaher Corporation (DHR) : Free Stock Analysis Report
VALE S.A. (VALE) : Free Stock Analysis Report
ICICI Bank Limited (IBN) : Free Stock Analysis Report
Raytheon Technologies Corporation (RTX) : Free Stock Analysis Report
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