Top Analyst Reports for Microsoft, Chevron & Accenture

Thursday, February 27, 2020

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 (MSFT), Chevron (CVX) and Accenture (ACN). 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 S&P 500 over the past year (+51.9% vs. +11%). The Zacks analyst believes that the ongoing expansion in Microsoft Teams’ subscriber base improved the company’s competitive edge in the enterprise communication market against Slack and Zoom.

Microsoft’s stellar second-quarter fiscal 2020 results reflected robust Commercial business and Azure’s expanding customer base. Furthermore, the company is well poised to widen the total addressable market through acquisitions of GitHub and PlayFab.

However, management doesn’t expect to meet its previous projection for third-quarter fiscal 2020 revenues at More Personal Computing due to the coronavirus outbreak in China. This, in turn, raises investors’ concerns, at least in the near term.

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

Shares of Chevron have lost 16.9% in the past three months against the Zacks Integrated Oil industry’s fall of 18.8%. The Zacks analyst believes that Chevron is one of the best-placed global integrated oil companies to achieve sustainable production ramp-up. America’s No. 2 energy company’s existing project pipeline is among the best in the industry, thanks to planned expansion in the lucrative Permian Basin.

Chevron’s substantial Permian holdings of 2.2 million net acres realized production growth of 154 MBOE/d in 2019 with Chevron targeting output of 900 MBOE/d in 2023. Chevron’s well economics in the unconventional play also continues to improve as it has been able to achieve a 40% reduction in its expenses since 2015. Consequently, Chevron is viewed a preferred energy major to own now.

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

Accenture’s shares have lost -0.6% over the past six months against the Zacks Consulting industry’s rise of +1.2%. The Zacks analyst believes that the company’s strong operating cash flow has helped it reward its shareholders in the form of dividends and share repurchases, and pursue opportunities in areas that show true potential.

The company has been strategically enhancing its cloud and digital marketing suite through acquisitions and partnerships. Accenture is currently a global leader in the Salesforce implementation service space.

However, Accenture continues to face pricing pressure due to significant competition from strong companies like Genpact, Cognizant and Infosys. Global presence exposes Accenture to foreign currency exchange rate fluctuations. Buyout-related integration risks is a concern.

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

Other noteworthy reports we are featuring today include Coca-Cola (KO), PNC Financial Services (PNC) and Charles Schwab (SCHW).

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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

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

Chevron (CVX) to Gain from Massive Permian Acreage

Consulting Strength Aids Accenture (ACN), Competition Rife

Featured Reports

Investment & Innovation Mirror Coca-Cola's (KO) Core Strength

Per the Zacks analyst, innovation and investment in core categories and brands have been the key focus area for Coca-Cola.

Attractive Business Mixes Aid PNC, Increasing Costs a Woe

Per the Zacks analyst, execution of strategic initiatives and attractive business profile helps PNC improve its topline.

Strategic Acquisitions Aid Schwab (SCHW) Amid Lower Rates

Per the Zacks analyst, Schwab's inorganic growth initiatives and other revenue diversification efforts will aid profits.

Cost Reduction Aid Southern Copper (SCCO), Low Prices a Woe

The Zacks analyst believes the company will gain from its cost reduction and expansion actions, particularly in Peru given its solid prospects.

Willis Towers (WLTW) Buyouts Aid, Expenses on the Rise

Per the Zacks analyst, the buyout of TRANZACT boosted the company's presence in the health care space and drove revenue growth as well.

Acquisitions Boost Wabtec (WAB) Despite High Costs & Debts

The Zacks analyst favors the company's growth-by-acquisition strategy. Efforts to reward its shareholders are also encouraging.

Air Traffic Growth, Acquisitions Aid HEICO Corp. (HEI)

Per the Zacks analyst, expanding commercial air traffic has been boosting demand for HEICO's products. Its disciplined acquisition strategy has also been bolstering the stock's overall growth.

New Upgrades

Architectural Specialties Unit to Aid Armstrong World (AWI)

Per the Zacks analyst, solid volume in the Architectural Specialties, improved manufacturing productivity and buyouts to spur growth for Armstrong World.

Strong Advanced Surgical Unit Aids Integer Holdings (ITGR)

Integer Holdings has gained consistently from strength in Advanced Surgical segment. The Zacks Analyst is also upbeat about a solid view for 2020.

Sprouts Farmers (SFM) Fresh Item Management to Lift Sales

Per the Zacks analyst, Sprouts Farmers is likely to gain from Fresh Item Management aimed at lowering operational complexity, optimizing production, improving in-stock position and driving sales.

New Downgrades

Volatile Wood Product Markets to Hurt Weyerhaeuser (WY)

Per the Zacks analysts, lower realizations in lumber and oriented strand board (OSB), volatile wood product markets and tighter margins in engineered wood have been impacting Weyerhaeuser.

Challenging Industrial Markets & Costs Woes to Hurt IDEX (IEX)

Per a Zacks analyst, IDEX's (IEX) performance in the first half of 2020 to suffer from challenging industrial markets.

Escalating Expenses Continue to Bother ProAssurance (PRA)

Per the Zacks analyst, the company has been constantly enduring higher underwriting, policy acquisition and operating expenses over the past many years, which in turn, weigh on the margins.

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The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
 
The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report
 
Microsoft Corporation (MSFT) : Free Stock Analysis Report
 
Coca-Cola Company (The) (KO) : Free Stock Analysis Report
 
Chevron Corporation (CVX) : Free Stock Analysis Report
 
Accenture PLC (ACN) : Free Stock Analysis Report
 
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