Monday, July 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 Amazon.com, Inc. (AMZN), Prologis, Inc. (PLD) and Infosys Limited (INFY), as well as a micro-cap stock Blue Dolphin Energy Company (BDCO).  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 >>>

Amazon.com shares have outperformed the Zacks Internet - Commerce industry over the year-to-date period (+20.7% vs. +14.6%). The company is gaining on solid Prime momentum owing to ultrafast delivery services and strong content portfolio. Strengthening relationship with third-party sellers is a positive.

Strong adoption rate of AWS is aiding the company’s cloud dominance. Improving Alexa skills along with robust smart home products offerings are tailwinds. Robust advertising business is also contributing well. The company’s strong global presence and solid momentum among the small and medium businesses remain a plus.

Growing capabilities in grocery, pharmacy, healthcare and autonomous driving are other positives. Deepening focus on generative AI is a major plus. However, macroeconomic challenges remain headwinds. Rising transportation and fulfillment center costs are concerns.

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

Shares of Prologis have outperformed the Zacks REIT and Equity Trust - Other industry over the past three months (+18.9% vs. +13.0%). According to the company’s recent estimate revision trend for third-quarter 2024 funds from operations (FFO) per share indicates a favorable outlook, with estimates moving north over the past week. Its second-quarter results reflected a rise in rental revenues, though higher interest expenses played a spoilsport.

Prologis is well-poised to gain from its portfolio of strategically located industrial facilities in some of the world’s busiest distribution markets. Strategic buyouts and development activities appear promising. A solid balance sheet strength aids its growth endeavors.

Despite the choppiness in the industrial real estate market, demand is improving and this trend is expected to continue. Also, the shrink in the construction pipeline augurs well. However, high interest rates remain a concern.

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

Infosys shares have outperformed the Zacks Computers - IT Services industry over the year-to-date period (+17.3% vs. +3.7%). The company is gaining from large deal wins and fast-growing digital services. Its sustained focus on Agile Digital and AI-driven Core services is a tailwind. The strong demand for its services in the cloud, the Internet of Things (IoT), cyber security and data and analytics is a key driver.

Higher investments by clients in digital transformation, AI and automation are an upside. The solid traction of its Cobalt cloud portfolio is another positive. The latest forecast for worldwide IT spending by Gartner is an upside for Infosys as well.

However, the company is suffering from increasing anti-outsourcing sentiments in certain countries. Higher subcontractor costs and compensation revision with higher variable pay and incentives are weighing on its margins. Further, currency volatility between the Indian rupee and the U.S. dollar is a concern.

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

Shares of Blue Dolphin Energy have underperformed the Zacks Oil and Gas - Exploration and Production - United States industry over the year-to-date period (-2.8% vs. +5.0%). This microcap company with market capitalization of $62.67 million is facing risks include heavy reliance on refining margins, which saw first-quarter 2024 revenues drop to $91 million from $116.7 million the previous year, and high customer concentration, with 89% of 2023 revenues from two main customers.

Moreover, persistent debt issues, significant default amounts, and concerns over affiliate transactions further cloud its financial stability. Blue Dolphin, operating in the strategic Eagle Ford Shale region, offers a robust investment option with its established market presence and considerable infrastructure, including a 15,000-barrel-per-day refinery and more than 1.25 million barrels of storage.

Financially, it managed costs effectively, reducing goods sold from $96.2 million in first-quarter 2023 to $79.2 million in first-quarter 2024, and secured a $5-million credit facility for liquidity.

(You can read the full research report on Blue Dolphin Energy here >>>)

Other noteworthy reports we are featuring today include América Móvil, S.A.B. de C.V. (AMX), Moderna, Inc. (MRNA) and Discover Financial Services (DFS).

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>>>