Yahoo Finance The Zacks Analyst Blog Highlights Microsoft, Oracle, T-Mobile US and EVI
For Immediate Release
Chicago, IL – July 3, 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, Oracle Corp. ORCL, T-Mobile US, Inc. TMUS, and EVI Industries, Inc. EVI.
Here are highlights from Tuesday’s Analyst Blog:
Top Analyst Reports for Microsoft, Oracle and T-Mobile
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., Oracle Corp. and T-Mobile US, Inc., as well as a micro-cap stock EVI Industries, 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 shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+21.4% vs. +15.1%), reflecting continued gains 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 Oracle have outperformed the Zacks Computer - Software industry over the year-to-date period (+36.1% vs. +15.1%). The company's fourth-quarter fiscal 2024 results benefited from the steady adoption of strategic cloud applications, autonomous database and OCI, as well as a recovery in 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. ORCL's continued investment in cloud infrastructure positions it well for sustained growth in the dynamic software industry. Its share buybacks and dividend policy are noteworthy.
However, the uncertain economy and competition in the cloud computing market weighed 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 >>>)
T-Mobile shares have outperformed the Zacks Wireless National industry over the year-to-date period (+11.6% vs. +11.1%). The company is benefiting from industry-leading postpaid customer growth with a record-low churn rate. The acquisition of U.S. Cellular's wireless operation will enable TMUS to expand its fast-growing home broadband offerings and fixed wireless products by tapping into the additional capacity and coverage.
Long-term contracts with the U.S. Navy will likely boost commercial prospects. Lower operating expenses are boosting its margin. Solid growth in free cash flow underscores efficient capital management and implies that the company is well-positioned to invest in growth initiatives.
However, the highly competitive and saturated U.S. telecom market affects its growth potential. Promotional offers and low-priced service plans to expand the customer base are putting pressure on its profitability. Soft demand for prepaid services is a headwind.
(You can read the full research report on T-Mobile here >>>)
Shares of EVI have underperformed the Zacks Industrial Services industry over the past year (-17.5% vs. -10.6%). This microcap company with market capitalization of $224.96 million is facing challenges which include declining profitability, higher operating costs and interest expenses, competitive pressures, and environmental regulations, impacting margins and growth.
Nevertheless, EVI is well-positioned in the growing dry-cleaning and laundry services market, benefiting from urbanization, increasing disposable incomes, and demand from the hotel sector. EVI's revenues reached $263.4 million in the nine months ended Mar 31, 2024, driven by price increases to counter rising costs, improving gross profit margins to 29.6%.
The "buy-and-build" strategy, exemplified by acquiring ALCO Washer Center, enhances market presence and service capabilities. EVI maintains a strong balance sheet, reducing long-term debt to $21.9 million and a current ratio of 1.53. Innovations in smart-laundry solutions cater to environmental and convenience demands.
(You can read the full research report on EVI here >>>)
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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.
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Microsoft Corporation (MSFT) : Free Stock Analysis Report
Oracle Corporation (ORCL) : Free Stock Analysis Report
T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report
EVI Industries, Inc. (EVI): Free Stock Analysis Report
