Yahoo Finance The Zacks Analyst Blog Highlights Microsoft,Apple Alphabet and CompX International
For Immediate Releases
Chicago, IL – June 13, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Microsoft Corp. MSFT, Apple Inc. AAPL, Alphabet Inc. GOOGL and CompX International Inc. CIX.
Here are highlights from Wednesday’s Analyst Blog:
Top Analyst Reports for Microsoft, Apple and Alphabet
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., Apple Inc. and Alphabet Inc, as well as a micro-cap stock CompX International Inc. The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
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 past year (+31.8% vs. +23.7%). The company is riding on strong growth from Intelligent Cloud and Productivity and Business Processes. Intelligent Cloud revenues are driven by growth in Azure and other cloud services.
Productivity and Business Processes revenues continue to rise due to the strong adoption of Office 365 Commercial solutions. Microsoft 365 Consumer subscribers grew to 80.8 million in the third quarter. Continued momentum in the small and medium businesses and frontline worker offerings, as well as a rise in revenue per user, drove top-line growth.
However, the office's declining commercial licensing has been a headwind due to the continued customer shift to cloud offerings. Higher operating expenses and spending on Azure enhancements amid stiff competition in the cloud space remain a concern.
(You can read the full research report on Microsoft here >>>)
Shares of Apple have outperformed the Zacks Computer - Mini computers industry over the past year (+17.4% vs. +13.5%). The company is benefiting from increasing customer engagement in the services segment. The expanding content portfolio of Apple TV+ and Apple Arcade helped in driving subscriber growth. Apple’s top-line benefits from strong growth in emerging markets and growing adoption of its devices among enterprises.
However, Apple’s near-term prospects remain foggy due to sluggish China sales amid stiff competition. It expects the June quarter’s (third-quarter fiscal 2024) revenues to grow low-single-digit year over year. Unfavorable forex is expected to hurt revenues by 2.5%.
Apple has been playing catch-up in the AI space compared with Alphabet, Microsoft and Amazon, its peers in the “magnificent seven” group. Following the launch of Apple Intelligence, its competitive position is expected to improve.
(You can read the full research report on Apple here >>>)
Alphabet’s shares have outperformed the Zacks Internet - Services industry over the year-to-date period (+28.4% vs. +22.2%). The company’s robust cloud division is aiding substantial revenue growth. Expanding data centers, cloud regions and availability zones will continue to bolster its presence in the cloud space.
Major search updates and removal of bad ads to enhance the search results continue to boost traffic on the company’s search engine. Growing momentum across Google’s mobile search is contributing further. Strengthening generative AI capabilities should aid business growth in the long term. Deepening focus on wearables category remains a tailwind. Expanding presence in the autonomous driving space is a plus.
However, sluggish Network advertisement business is a negative. Increasing litigation issues and expenses remain concerns. Rising cloud competition from Microsoft and Amazon is a concern.
(You can read the full research report on Alphabet here >>>)
Shares of CompX International have outperformed the Zacks Office Supplies industry over the past six months (+18.2% vs. +10.8%). This microcap company with market capitalization of $292.45 million have a strong cash and marketable securities balance of $75.6 million as of Mar 31, 2024, ensures robust liquidity for operations and growth.
CompX International also consistently pays dividends, with a recent 20% increase. The Security Products segment saw a 9% year-over-year sales increase in the first quarter of 2024, indicating strong demand. Efficient cost management in the Marine Components segment and aligning inventory with market conditions reflect operational efficiency.
However, CompX faces a challenging 2024 outlook, particularly in the Marine Components segment, due to reduced demand and OEM customers cutting production. Security Products’ sales are expected to be lower, as a significant government project from 2023 is not anticipated to recur. Also, intense competition and dependency on key customers pose additional risks.
(You can read the full research report on CompX International here >>>)
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
CompX International Inc. (CIX) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
