Best Stock Reports for Amazon, Verizon, and Oracle

Friday, January 28, 2022

Zacks Research Daily features top research results from our team of analysts. Today’s Research Daily features new research reports on 16 major stocks, including Amazon.com, Inc. (AMZN), Verizon Communications Inc. (VZ) and Oracle Corp. (ORCL). These research reports have been handpicked from the approximately 70 reports published today by our team of analysts.

You can see all today’s research reports here >>>

Shares of Amazon have underperformed the S&P 500 over the past year (-12.9% vs. +15%), but things seem to be looking up for him. The Zacks analyst believes that Amazon has benefited from its Prime program, delivery system and e-commerce logistics. High adoption rate of AWS contributes to AMZN’s cloud dominance.

An expanding portfolio of AWS services has helped Amazon gain momentum in the space. Plus, strong Alexa skills and expanding smart home product portfolio are positives. Rising expenses associated with supply chain constraints and labor shortages remain a concern, however.

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

Verizon shares are down -6.4% over the past six months against domestic industry Zacks Wireless’ -14.1% loss. Verizon operates in an extremely competitive wireless market in the United States, which impacts its profitability. High spending on promotions, lucrative discounts to entice customers as well as high spending on auctions are expected to further weigh on margins.

The Zacks analyst, however, believes Verizon is poised to benefit from rapid 5G adoption and fixed wireless broadband momentum. It currently covers over 95 million people with 5G Ultra Wideband. Investing in 5G Ultra Wideband provides users with unparalleled speed on their phones and other devices.

(You can read the full Verizon research report here >>>)

Shares of Oracle lost -16.5% in the last three months compared to a loss of -13.3% for computer software industry Zacks. Fierce competition, lawsuits and integration risks are likely to impact Oracle’s short-term profitability.

The Zacks analyst, however, believes Oracle has benefited from strong adoption of Oracle Cloud Infrastructure (OCI) services and autonomous database offerings. Healthy adoption of cloud-based applications including NetSuite Enterprise Resource Planning (ERP), Fusion ERP and Fusion Human Capital Management (HCM) bodes well for the long term.

(You can read the full Oracle research report here >>>)

Other noteworthy reports we’re featuring today include PepsiCo, Inc. (DYNAMISM) and NextEra Energy, Inc. (BORN).

Marc Vickery
Senior Writer

Note: Sheraz Mian leads the equity research department at Zacks and is a well-known expert on overall earnings. He is frequently quoted in the written and electronic press and publishes the weekly Earnings Trends and Earnings Overview reports. If you would like to receive an email notification whenever Sheraz publishes a new article, please click here>>>

To read today

Amazon (AMZN) builds on blue-chip momentum and growing adoption of AWS

5G Forte, Helping Verizon (VZ) Customers Grow Amid Competition

Oracle (ORCL) rides on cloud suite adoption and partnerships

Featured Reports

PepsiCo’s (PEP) investments in companies boost revenue
Zacks analyst says PepsiCo is benefiting from investments in brands, go-to-market systems, supply chains, manufacturing capacity and digital capabilities, which helped revenue third trimester.

AT&T(T) benefits from subscriber growth and strength in 5G and fiber
According to the Zacks analyst, AT&T is poised to benefit from a holistic growth policy driven by healthy wireless traction led by solid subscriber growth and platform strength in 5G, fiber and HBO Max.

Stable investment and targeted support for renewable energy NextEra Energy (NEE)
According to the Zacks analyst, NextEra’s planned capital investment to improve clean power generation and strengthen its infrastructure will increase its profitability.

Glaxo’s (GSK) pipeline grows amid growing competition
Glaxo has made significant progress in its pipeline. Several new drug/line extension approvals are expected in 2022, which should boost long-term revenue, the Zacks analyst believes.

E-commerce adoption, high inventory to help Prologis (PLD)
The Zacks analyst said rapid e-commerce adoption and high inventory levels will drive demand.

Dividends boost FedEx (FDX) despite supply chain issues
The Zacks analyst appreciates the company’s efforts to pay dividends even in these difficult times.

Aid Aon (AON) Strategic Initiatives, rising debt hurts
According to the Zacks analyst, a number of acquisitions and collaborations helped Aon improve its capabilities, which in turn improved its bottom line.

New upgrades

Rise in Loan Demand, Growth in BankUnited (BKU) Fee Income Assistance
According to the Zacks analyst, decent loan demand and a focus on fee income should continue to help BankUnited’s earnings. The manageable level of debt and the solidity of the balance sheet are other favorable factors.

RPC (RES) will benefit from the increase in oil activities
According to the Zacks analyst, RPC is well positioned to benefit from increased oil activity in the industry it serves, as the favorable commodity price scenario has boosted upstream investment.

Product innovations to help the top line of JAKKS Pacific (JAKK)
According to the Zacks analyst, JAKKS Pacific’s strong international footprint, focus on innovation and collaborations with popular brands and movie franchisees should drive revenue growth.

New downgrades

Sanofi (SNY) Low Diabetes Unit; COVID hurts sales
Sanofi faces weak performance from its Diabetes unit and generic competition for many drugs, according to the Zacks analyst. COVID-19 has caused a slowdown in the number of new patients starting certain medications.

Rising operating costs and regulatory risks hurt Navient (NAVI)
According to the Zacks analyst, regulatory risks can hamper opportunities for management fee growth. Increased spending due to Navient’s investments in technology could hamper earnings growth.

Cost issues and high leverage for Garlic American Axle (AXL)
According to the Zacks analyst, rising raw material and R&D costs will cause American Axle’s already stretched balance sheet (with debt at 88% capitalization) to deteriorate.

The infrastructure stock boom will sweep America

A massive push to rebuild America’s crumbling infrastructure will soon be underway. It is bipartisan, urgent and inevitable. Billions will be spent. Fortunes will be made.

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Amazon.com, Inc. (AMZN): Free Stock Analysis Report

NextEra Energy, Inc. (NEE): Free Stock Analysis Report

AT&T Inc. (T): Free Inventory Analysis Report

Verizon Communications Inc. (VZ): Free Stock Analysis Report

PepsiCo, Inc. (PEP): Free Stock Analysis Report

Oracle Corporation (ORCL): Free Inventory Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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