Yahoo Finance Top Stock Reports for Alphabet, Salesforce & Comcast
Monday, January 22, 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 Alphabet Inc. (GOOGL), Salesforce, Inc. (CRM) and Comcast Corporation (CMCSA). 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 >>>
Alphabet shares have matched the Zacks Internet - Services industry's performance over the past year (+46.7% vs. +46.2%), but outperformed the Zacks Tech sector (+42.6%) and the S&P 500 index (+20.8%). The company’s strong cloud division is aiding substantial revenue growth. Moreover, expanding data centers will continue to bolster its presence in the cloud space. Further, major updates in its search segment are enhancing the search results.
Also, strong focus on innovation of AI techniques and the home automation space should aid business growth in the long term. Further, its deepening focus on wearables category remains a tailwind. Alphabet’s expanding presence in the autonomous driving space is contributing well.
Its growing efforts to gain foothold in the healthcare industry are other positives. However, sluggishness in the company’s Network advertisement business remains a headwind. Additionally, its growing litigation issues and increasing expenses are concerns.
(You can read the full research report on Alphabet here >>>)
Shares of Salesforce have outperformed the Zacks Computer - Software industry over the past year (+80.2% vs. +57.6%). The company is benefiting from a robust demand environment as customers are undergoing a major digital transformation. The company’s sustained focus on aligning products with customer needs is driving the top line.
Continued deal wins in the international market are another growth driver. The buyout of Slack has positioned the company as a leader in enterprise team collaboration and improved its competitive standing versus Microsoft Teams. Salesforce’s strategy of continuously expanding generative AI offerings will help the company tap the growing opportunities in the space.
However, stiff competition and unfavorable currency fluctuations are concerns. Also, the challenging macroeconomic environment could hurt its growth prospects.
(You can read the full research report on Salesforce here >>>)
Comcast shares have modestly outperformed the Zacks Cable Television industry over the past year (+10.7% vs. +9.0%). The company is benefiting from a growing wireless subscriber base as witnessed in the third quarter. Broadband user base increased in the reported quarter.
Comcast’s plan to transition to DOCSIS 4.0 is noteworthy. The technology will help the company expand much faster and at a lower cost compared with competitors. Recovery in the park and movie business bodes well for the company’s profitability. Its streaming service, Peacock, is a key catalyst in driving broadband sales. Strong free cash flow generation ability is noteworthy.
However, Comcast persistently suffers from video-subscriber attrition due to cord-cutting. Moreover, broadband prospects are suffering from increasing competition from fixed wireless as well as fiber. Additionally, a leveraged balance sheet is a major concern.
(You can read the full research report on Comcast here >>>)
Other noteworthy reports we are featuring today include Colgate-Palmolive Company (CL), Baker Hughes Company (BKR) and American Water Works Company, Inc. (AWK).
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
Solid Momentum in Cloud Business Benefits Alphabet (GOOGL)
Digital Transformation and Acquisitions Aid Salesforce (CRM)
Wireless Subscriber Gain Drives Comcast's (CMCSA) Prospects
Featured Reports
Colgate (CL) Gains From Pricing and Productivity Initiatives
Per the Zacks analyst, Colgate is benefiting from strong pricing and other productivity initiatives. The company has been implementing aggressive pricing actions for a while, which boosted margins.
Baker Hughes (BKR) Likely to Gain From Higher LNG Demand
Per the Zacks analyst, Baker Hughes will reap the rewards of project visibility, with expectations that it will persist well into 2026 and beyond. Yet, rising labor and operating costs are concerning.
Investment & Expanding Operation Aid American Water (AWK)
Per the Zacks analyst American Water's planned investment to strengthen infrastructure and expanding operation through acquisition and organic means are going to drive its performance.
Ajovy & Austedo to Boost TEVA Amid Rivalry in Branded Market
Per the Zacks Analyst, increasing sales of Teva's newer drugs, Ajoy and Austedo are driving its. However, competitive pressure on some key branded drugs along with a few other factors is a woe.
Alaska Air (ALK) Rides on Travel Demand Amid Fuel Cost Woes
Upbeat air travel demand is driving Alaska Air's top line. The Zacks analyst is, however, worried about escalated fuel costs that are limiting bottom-line growth.
Wendy's (WEN) Banks on Digitization Efforts, High Costs Ail
Per the Zacks analyst, Wendy's is likely to benefit from digitization, unit expansion and Breakfast daypart offerings. However, uncertain macro environment and high commodity costs are headwinds.
Veracyte (VCYT) Rides On The Success of Afirma and Decipher
The Zacks Analyst is impressed with Veracyte's established framework driving the remarkable performance of Afirma and Decipher tests. Investing in long-term growth drivers will propel the growth.
New Upgrades
Acquisitions & Solid Acute Care Unit Aid Universal Health (UHS)
Per the Zacks analyst, numerous acquisitions help Universal Health expand geographically and boost current segments. New hospitals are expected to accelerate growth in its Acute Care Segment.
Strength in Motive Power Segment to Drive EnerSys (ENS)
Per the Zacks analyst, impressive performance of EnerSys' Motive Power segment, fueled by robust demand for its products and effective pricing strategy, will continue to lend momentum to it.
Solid AUM, Liquidity Position Aid Artisan Partners (APAM)
Per the Zacks analyst, robust AUM balance will keep aiding Artisan Partners' revenues. Decent liquidity position will likely aid the firm to meet its debt obligations if economic conditions worsen.
New Downgrades
Rising Expenses & Stiff Competition to Ail Winnebago (WGO)
The Zacks analyst is worried about Winnebago's increasing selling, general and administrative expenses. Stiff competition within the recreational vehicle industry also remains a concern.
Cambium (CMBM) Plagued by Excess Inventory Levels, Soft Demand
Per the Zacks analyst, aggressive pricing discounts on Enterprise products to reduce inventory levels will likely impede the top line. Weak demand in the Asia-Pacific region remains a concern.
Hormel Foods (HRL) Remains Troubled by International Unit
Per the Zacks analyst, Hormel Foods is hurt by weakness in the International Unit. During fiscal fourth-quarter, segmental sales fell 12% year over year on softness across China among other reasons.
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Salesforce Inc. (CRM) : Free Stock Analysis Report
Comcast Corporation (CMCSA) : Free Stock Analysis Report
Colgate-Palmolive Company (CL) : Free Stock Analysis Report
American Water Works Company, Inc. (AWK) : Free Stock Analysis Report
Baker Hughes Company (BKR) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
