Yahoo Finance Top Stock Reports for Oracle, Progressive & MercadoLibre
Thursday, January 25, 2024
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Oracle Corporation (ORCL), The Progressive Corporation (PGR) and MercadoLibre, Inc. (MELI). 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 >>>
Shares of Oracle have gained +29.2% over the past year against the Zacks Computer - Software industry’s gain of +56.9%. The company’s second-quarter fiscal 2023 results benefited from a steady adoption of Gen 2 Cloud, Fusion and Autonomous Database despite slow cloud revenue growth. Its Gen 2 Cloud is driving artificial intelligence (AI) clientele because of better performance at a lower cost due to high bandwidth and low-latency RDMA networks.
Partnerships with VMware and Microsoft is helping Oracle win new clientele. The company is launching a generative AI cloud service for enterprise customers. Its share buybacks and dividend policy are noteworthy.
However, an uncertain economic environment and competition in the cloud computing market is weighing on demand for its cloud offerings. Stiff competition in the cloud market is slowing down the growth of its expansion efforts in the competitive market.
(You can read the full research report on Oracle here >>>)
Progressive shares have outperformed the Zacks Insurance - Property and Casualty industry over the past year (+33.2% vs. +18.0%). The company continues to gain on higher premiums, given its compelling product portfolio, leadership position and strength in both Vehicle and Property businesses.
Focus on becoming a one-stop insurance destination, catering to customers opting for a combination of home and auto insurance, augurs well for the company's growth. Policies in force and retention ratio should remain healthy. Competitive pricing to retain current customers and address customer needs with new offerings should continue to drive policy life expectancy.
However, exposure to catastrophe losses induces underwriting volatility. Escalating expenses due to higher losses and settlement expenses remain an overhang on the margin. High debt level along with low times earned interest pose financial risk.
(You can read the full research report on Progressive here >>>)
Shares of MercadoLibre have outperformed the Zacks Internet - Commerce industry over the past year (+48.3% vs. +28.4%). The company is benefiting from accelerating commerce and fintech revenues. Increasing total payments volume (TPV), courtesy of the robust Mercado Pago, is contributing well. Also, strong mobile-point-of-sale business is a plus.
Further, rising gross merchandise volume (GMV) remains a tailwind. Solid shipment growth is acting as a key catalyst. Growing momentum in user engagement, driven by continued improvements in logistics experience, is a plus. Also, strong momentum across the company's advertising services is a positive.
Additionally, MercadoLibre continues to benefit from strong online-to-offline offerings. However, mounting expenses related to warehousing, free shipping subsidies and mPOS discounts are major concerns.
(You can read the full research report on MercadoLibre here >>>)
Other noteworthy reports we are featuring today include Workday, Inc. (WDAY), Moderna, Inc. (MRNA) and Agilent Technologies, Inc. (A).
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
Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships
Progressive (PGR) Gains on Premiums, Cat Loss Woes Linger
MercadoLibre (MELI) Gains From Total Payment Volume Growth
Featured Reports
Workday (WDAY) Rides on Healthy Demand Trends, AI Focus
Per the Zacks analyst, growing demand for human capital and financial management solutions across various industries will likely boost Workday's top line. Emphasis on AI integration is a tailwind.
Moderna's (MRNA) New Launches to Reduce COVID Sales Dependency
With COVID vaccine sales declining, Moderna (MRNA) is accelerating development of its non-COVID pipeline. The Zacks Analyst is encouraged by the potential product launches over the next three years.
Agilent Technologies (A) Banks on Strength in ACG Segment
Per the Zacks analyst, Agilent Technologies is benefiting from strength in the Agilent Cross Lab Group segment, owing to solid momentum across all end markets and regions.
Innovations to Aid Textron (TXT), Labor Shortage May Hurt
Per the Zacks analyst, new product launch will enable Textron to capture more shares in the market. Yet labor shortage in the industry might hurt timely deliveries and thereby its revenues.
Strategic Business Investments Aids Louisiana-Pacific (LPX)
Per the Zacks analyst, Louisiana-Pacific is benefiting from its strategic business investments and cost-reduction initiatives. Also, its focus on Siding and Oriented Strand Board business bodes well.
New Upgrades
Solid Stream Agreements to Drive Wheaton Precious (WPM)
Per the Zacks Analyst, Wheaton Precious Metal's focus on diversifying its portfolio through the acquisition of streaming agreements in high-quality assets will continue to drive growth.
DocuSign (DOCU) Gains From eSignature Strength, Investments
The Zacks analyst is positive about DocuSign's top line as it is significantly benefiting from continued customer demand for eSignature. Investments in technical expertise are also reaping benefits.
New Downgrades
Escalating Costs and Forex Woes Hurt Johnson Controls (JCI)
Per the Zacks analyst, Johnson Controls is struggling with high commodity costs, which in turn, are hurting the company's bottom line. Forex woes are an added concern for the company.
Accounting Probe Pose Concerns for Archer Daniels (ADM)
Per the Zacks analyst, concerns regarding an ongoing investigation into accounting practices, particularly in the Nutrition segment, puts Archer Daniels in a weak spot. ADM slashed EPS view for 2023.
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Agilent Technologies, Inc. (A) : Free Stock Analysis Report
Oracle Corporation (ORCL) : Free Stock Analysis Report
Moderna, Inc. (MRNA) : Free Stock Analysis Report
The Progressive Corporation (PGR) : Free Stock Analysis Report
Workday, Inc. (WDAY) : Free Stock Analysis Report
MercadoLibre, Inc. (MELI) : Free Stock Analysis Report
