Yahoo Finance Top Stock Reports for Oracle, Lockheed Martin & TJX Companies
Wednesday, February 8, 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 Corp. (ORCL), Lockheed Martin Corp. (LMT) and The TJX Companies, Inc. (TJX). 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 outperformed the Zacks Computer - Software industry over the past year (+5.2% vs. -14.2%). The company benefitted from strength in infrastructure and applications cloud businesses. Solid adoption of cloud-based applications, comprising NetSuite Enterprise Resource Planning (ERP), Fusion ERP and Fusion Human Capital Management (HCM), bodes well.
The Zacks analyst expect fiscal 2023 revenues to jump 13.6% over fiscal 2022. Solid demand for the Oracle Dedicated Region Cloud@Customer is anticipated to drive the top line. Oracle expects total cloud growth, including Cerner, to grow from 43% to 47% in USD for the next quarter. Partnerships with Accenture and Microsoft are helping Oracle win new clientele.
However, higher spending on product enhancements, especially toward the cloud platform, is likely to limit margin expansion. We expect fiscal 2023 non-GAAP operating expenses to jump 18.3% over fiscal 2022.
(You can read the full research report on Oracle here >>>)
Shares of Lockheed Martin have outperformed the Zacks Aerospace - Defense industry over the past year (+18.7% vs. -8.1%). The company enjoys a consistent level of contract flows, and subsequent backlog growth bolsters its long-term revenue prospects. The company remains the largest U.S. defense contractor, with a steady inflow of orders from its leveraged presence in the Army, Air Force, Navy and IT programs.
Steady contract flows and subsequent backlog growth bolster its long-term revenue prospects. Budgetary provisions tend to boost its business. Yet strains between the U.S. and Turkey, as a result of the latter accepting Russian products, might hurt Lockheed's component supply from that country.
Lockheed is facing performance issues concerning some of its products, which, in turn, may hurt its results. Also, an uncertainty revolving around the possible sanction by China on Lockheed might impact the company.
(You can read the full research report on Lockheed Martin here >>>)
Shares of The TJX Companies have outperformed the Zacks Retail - Discount Stores industry over the past year (+11.7% vs. +0.2%). The company’s off-price business model, strategic store locations, impressive brands and fashion products and supply-chain management have been working well. TJX is benefiting from its solid store and e-commerce growth efforts.
The company registered an improved pretax profit margin in the third quarter of fiscal 2023. Management is optimistic about its capabilities to provide impressive brands and gifts to its stores and online during the holiday season.
That being said, The TJX Companies has been grappling with increased freight costs. In addition, the company saw additional wage costs in the fiscal third quarter. Management is projecting nearly 130 basis points (bps) of incremental freight expense and 70 bps of wage costs for fiscal 2023.
(You can read the full research report on The TJX here >>>)
Other noteworthy reports we are featuring today include Illinois Tool Works Inc. (ITW), Aflac Inc. (AFL) and Trane Technologies plc (TT).
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
Order Growth Boosts Lockheed (LMT), Tiff With Turkey Ails
Online Growth to Fuel TJX Companies (TJX), High Costs a Woe
Featured Reports
Industrial Business Aids Illinois Tool (ITW), High Costs Ail
Per the Zacks analyst, solid traction of Illinois Tool's industrial and capital equipment businesses should drive its growth. However, raw material cost-inflation is concerning for the company.
Trane Technologies (TT) Benefits From Pro-Investor Steps
The Zacks analyst is impressed by Trane Technologies efforts to reward shareholders through dividends & buybacks. Strong growth objectives are also beneficial.
Generic Business Boost Dr. Reddy's (RDY) Despite Stiff Rivalry
Per the Zacks Analyst, strong generic business and new product launches boost Dr Reddy's. However, competitive and pricing pressure in the United States generics industry is a challenge.
Ciena (CIEN) Benefits from Product Portfolio & Acquisitions
Per the Zacks analyst, Ciena's performance is gaining from increased demand for its diversified product portfolio and strong secular demand trends. Synergies from recent acquisitions also bode well.
PBF Energy (PBF) to Gain From Renewable Diesel Fuel Project
The Zacks analyst expects PBF Energy to gain from its renewable fuel production facility in the Chalmette refinery, contributing to growth in sustainable biofuels.
Solid Product Suite Aid Avanos (AVNS) Amid Stiff Competition
The Zacks analyst is upbeat about Avanos' robust product portfolio, focused on respiratory and digestive health, despite its operation in a highly competitive market.
Core Labs (CLB) to Gain from Low Capital Expenditure Needs
The Zacks analyst likes Core Labs' low capital expenditure needs, which allows it to generate substantial free cash flows but is worried over the low dividend payout.
New Upgrades
Solid U.S. Segment, Sound Cash Reserves Aid Aflac (AFL)
Per the Zacks analyst, its U.S. segment backed by product innovations and increased face-to-face interactions fuel growth. A strong financial position remains noteworthy.
Internal Development & Pro-Investor Steps Aid Omnicom (OMC)
Per the Zacks analyst, internal development initiatives ensure long-term profitability for Omnicom. Also, shareholder-friendly steps are tailwinds.
Walden Inclusion & Operational Efficiency Aid Adtalem (ATGE)
Per the Zacks analyst, Adtalem benefits from operational efficiency and the realization of cost synergies associated with the Walden integration.
New Downgrades
Cummins (CMI) to Suffer Due to Losses From New Power Unit
Cummins' New Power segment is incurring continuous losses, which are likely to escalate this year, dragging down the firm's overall margins, per the Zacks analyst.
Worsening Credit Quality, High Costs Hurt Cullen/Frost (CFR)
Per the Zacks analyst, mounting expenses and a concentrated loan portfolio are major headwinds for Cullen/Frost. Additionally, the deterioration of the company's credit quality is concerning.
High Inflation & Supply-Chain Woes Hurt Owens Corning (OC)
As per the Zacks analyst, inflationary pressures, supply chain risks and labor constraints are restricting the growth of Owens Corning.
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Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
The TJX Companies, Inc. (TJX) : Free Stock Analysis Report
Oracle Corporation (ORCL) : Free Stock Analysis Report
