Top Analyst Reports for Microsoft, Exxon Mobil & Toyota Motor
Thursday, February 8, 2024
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), Exxon Mobil Corporation (XOM) and Toyota Motor Corporation (TM). 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 outperformed the Zacks Computer - Software industry over the past year (+58.5% vs. +54.0%). 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. Also, 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 Exxon Mobil have underperformed the Zacks Oil and Gas - Integrated - International industry over the past year (-7.5% vs. -3.5%). The company is lagging its peers when it comes to shareholders’ returns. The energy giant’s financials were weakened by years-long significant spending on low-return developments and the coronavirus pandemic. Also, high input cost is hurting refining operations.
Nevertheless, ExxonMobil's bellwether status and an optimal integrated capital structure that has historically produced industry-leading returns make it a relatively lower-risk energy sector play. In Stabroek Block, located offshore Guyana, ExxonMobil has made many major discoveries that significantly improve its production outlook.
The advantaged growth projects of Guyana have lower greenhouse gas intensity than most of the oil and gas-producing resources across the globe. ExxonMobil’s deal to acquire Pioneer Natural will bolster its presence in the prolific Permian Basin.
(You can read the full research report on Exxon Mobil here >>>)
Toyota Motor’s shares have outperformed the Zacks Automotive - Foreign industry over the past year (+56.5% vs. +38.2%). The company’s continued demand for vehicles and a robust lineup of trucks and sport utility vehicles are set to fuel Toyota’s sales volumes.
The Japanese auto giant aims to generate 40% of its global sales from electric vehicles by 2025 and 70% by 2030. It plans to invest 4 trillion yen ($35 billion) for a lineup of 30 battery electric vehicles by 2030. For fiscal 2024, Toyota projects vehicle sales of 9.6 million units, indicating an increase from 8.82 million units sold in fiscal 2023. Its investor-friendly moves also spark optimism.
However, commodity cost inflation is expected to continue to weigh on the company’s margins. High capex and R&D expenses on the development of electric and autonomous vehicles are likely to dent its near-term margins and cash flows. The stock warrants a cautious stance at present.
(You can read the full research report on Toyota Motor here >>>)
Other noteworthy reports we are featuring today include GSK plc (GSK), Chipotle Mexican Grill, Inc. (CMG) and Carrier Global Corporation (CARR).
Director of Research
Sheraz Mian
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)
ExxonMobil (XOM) Boosted by Stabroek Block Discoveries
Toyota (TM) to Ride on Massive EV Push Amid Cost Woes
Featured Reports
GSK (GSK) Vaccine & HIV Products to Drive Sales Growth
GSK's key products like Dovato, Nucala and Shingrix are driving sales. The Zacks analyst says GSK has some promising new products in Specialty Medicines and Vaccines areas like RSV vaccine, Arexvy.
Chipotle (CMG) Banks on Solid Comps Growth Amid High Costs
Per the Zacks analyst, Chipotle is aiding from high transactions, increased average checks and new restaurant openings, especially the ones with Chipotlanes. Yet, high commodity and labor costs ail.
Strong Portfolio Adoption Aids Carrier's (CARR) Prospects
Per the Zacks analyst, Carrier is benefiting from strong adoption of intelligent climate and energy solutions. Its embedding AI and generative AI capabilities into Abound is benefiting growth.
Prudential (PRU) Gains on Solid Retirement Unit Amid High Costs
Per the Zacks Analyst, the company's solid retirement business has generated substantial premiums, which in turn drove the top line. However, rising expenses remain a concern.
Hologic (HOLX) Banks on Breast Health Arm Amid Stiff Rivalry
The Zacks analyst is impressed with Hologic's strong Breast Health sales in fiscal Q1 driven by the robust demand in its gantry business. Yet, stiff rivalry remains a concern.
Post Holdings (POST) Benefits From Prudent Acquisitions
Per the Zacks analyst, Post Holdings is benefiting from its focus on acquisitions. During first-quarter fiscal 2024, the company's top line included $428.9 million in net sales from acquisitions.
Demand for Financing Aids Hercules Capital (HTGC), Costs Ail
Per the Zacks analyst, driven by the rise in demand for customized financing, total new commitments will increase, thus aiding Hercules Capital's top line. However, elevated costs might hurt profits.
New Upgrades
Investments, Customer Growth Aid Essential Utilities (WTRG)
Per the Zacks analyst, Essential Utilities' (WTRG) $3.3 billion investment to fortify it water and natural gas infrastructure and demand from expanding customer base are going to boost its performance
Newell (NWL) Tracks Well with E-commerce Growth Strategy
Per the Zacks analyst, Newell is strengthening its e-commerce business via increased investments and better customer engagement. Enhanced omni-channel capabilities to aid digital penetration.
Silicon Motion (SIMO) Rides on Solid Demand, Portfolio Strength
Per the Zacks analyst, rising demand for eMMC+UFS and SSD controllers will likely boost Silicon Motion's margin. Restructuring the organizational framework is expected to bring long-term benefits.
New Downgrades
J. B. Hunt (JBHT) Continues to Grapple With Segmental Weakness
The Zacks Analyst is worried about the fact that lower revenue across all business segments, higher equipment-related costs, and higher insurance and claims expenses weigh on J. B. Hunt's results.
Low Prices, Higher Interest Expenses to Hurt O-I Glass (OI)
The Zacks analyst is concerned that lower net prices as well as higher interest expense due to the company's recent refinancing activities will offset the impact of volume recovery and hurt earnings.
Mobile & Internet Subscriber Gain Benefits Charter (CHTR)
Per the Zacks analyst, higher subscriber strength in residential and internet services along with broadening Spectrum Mobile user base is driving Charter's top line.
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GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Toyota Motor Corporation (TM) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
Carrier Global Corporation (CARR) : Free Stock Analysis Report
