Tuesday, August 30, 2022
 
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 Corporation (MSFT), Amazon.com, Inc. (AMZN) and Walmart Inc. (WMT). 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 declined -11.4% over the past year against the Zacks Computer - Software industry’s decline of -19.3%. The company’s  increased spending on Azure enhancements amid stiff competition in the cloud space from Amazon is likely to dent margins. Nevertheless, the company’s performance is benefiting from strength in its Azure cloud platform amid accelerated global digital transformation.

Teams’ user growth is gaining from continuation of remote work and mainstream adoption of hybrid/flexible work model. Recovery in advertising and job market boosted LinkedIn and Search revenues. Solid uptake of new Xbox consoles is aiding the gaming segment performance.

The company is witnessing growth in user base of its different applications including Microsoft 365 suite, Dynamics and Power Platform. Microsoft expects Surface revenues to grow in the mid-teens range, driven by strong demand for premium devices.

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

Amazon.com shares have declined -25.2% over the past year against the Zacks Internet - Commerce industry’s decline of -33.9%. The company’s growing expenses associated with supply-chain constraints and labor supply shortages remain a concern. However, Amazon is gaining on solid Prime momentum owing to ultrafast delivery services and strong content portfolio. Further, strengthening relationship with third-party sellers is a positive.

Also, growing momentum across Amazon Music is contributing well. Additionally, strong adoption rate of AWS is aiding the company’s cloud dominance. Also, expanding AWS services portfolio is continuously helping Amazon in gaining further momentum among the customers.

Further, robust Alexa skills and expanding smart home products portfolio are positives. Additionally, the company’s strong global presence and solid momentum among the small and medium businesses remain tailwinds.

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

Walmart shares have declined -8.8% over the past year against the Zacks Retail - Supermarkets industry’s decline of -7.4%. The company’s consolidated operating income and earnings per share view suggest a decline from the year-ago period figures. It is also encountering cost pressure associated with fuel prices, supply chain and excess inventory. Cost inflation and markdowns hurt its gross margin in the second quarter.

However, Walmart has been benefiting from its robust omnichannel operations due to its efforts to enhance both store and online experience. It has been particularly gaining from its efforts to boost delivery services through acquisitions and partnerships.

The company’s U.S. comp sales continued to benefit from an increased market share in grocery in the second quarter of fiscal 2023, wherein the top line grew year over year. Management raised its net sales view for fiscal 2023.

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

Other noteworthy reports we are featuring today include Chevron Corporation (CVX), Novo Nordisk A/S (NVO), and Norfolk Southern Corporation (NSC).

Sheraz Mian
 
Director of Research

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>>>