Wednesday, September 11, 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 Oracle Corp. (ORCL), Morgan Stanley (MS) and Palo Alto Networks, Inc. (PANW), as well as a micro-cap The Monarch Cement Company (MCEM). 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 >>>

Oracle’s shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+49.3% vs. +10.2%). The company’s stock hit a record high of $160.52 a share following strong fiscal Q1 2025 results, driven by solid adoption of strategic cloud applications, autonomous database offerings and Oracle Cloud Infrastructure and recovery in cloud revenue growth. 

ORCL’s continued investment in cloud infrastructure positions it well for sustained growth in the dynamic software industry. The recent partnership with Amazon for Oracle Database@AWS and general availability of Oracle Database@Google bodes well. 

Oracle’s Gen 2 Cloud is driving artificial intelligence clientele.  Its share buybacks and dividend policy are noteworthy. However, higher spending on product enhancements, especially toward the cloud platform amid increasing competition in the cloud domain. is likely to limit margin expansion.

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

Shares of Morgan Stanley have outperformed the Zacks Financial - Investment Bank industry over the past three months (+2.0% vs. -2.4%). The company’s gradual revival in the investment banking (IB) business and a solid IB pipeline are expected to support its financials.

The Zacks analyst expects IB fees to jump 28.9% in 2024. Efforts to become less dependent on capital-markets-driven revenues, inorganic expansion/strategic alliance and high rates will likely aid the top line. We estimate revenues to witness a CAGR of 5.1% by 2026. 

However, operating expenses are likely to stay elevated amid business expansion efforts. We project total non-interest expenses to rise 3.5% in 2024. The ambiguity of the performance of the capital markets is a concern and might hurt the Institutional Securities segment’s prospects. Though the segment revenues are likely to rise going forward, they are not likely to reach 2021 levels soon.

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

Palo Alto Networks’ shares have outperformed the Zacks Internet - Software industry over the year-to-date period (+17.8% vs. +11.1%). The company has been benefiting from continuous deal wins and the increasing adoption of its next-generation security platforms, attributable to the rise in the hybrid work environment and the heightened need for stronger security.

PANW’s strong back-to-back quarterly performances reflect its sustained focus on product innovation, a shift in its business model to subscription-based services, platform integration and continued investments in the go-to-market strategy. The normalization of the supply chain is also aiding growth across the Products, Services and Subscription segments. 

However, softening IT spending amid macroeconomic headwinds might hurt its near-term prospects. Forex headwinds and higher marketing and sales expenses are likely to continue hurting its profitability. Also, high acquisition-related expenses are denting margins.

(You can read the full research report on Palo Alto Networks here >>>)

Shares of Monarch Cement have outperformed the Zacks Building Products - Concrete and Aggregates industry over the year-to-date period (+19.6% vs. -0.3%). This microcap company with market capitalization of $675.23 million is demonstrating solid earnings growth across its Cement and Ready-Mixed Concrete segments, with operating income rising year over year to $30.3 million for the six months ended June 2024. 

Monarch Cement's products, essential for infrastructure projects, ensure resilient demand across Kansas, Iowa, Nebraska and nearby states. Strategic acquisitions and its positioning to benefit from the Infrastructure Investment and Jobs Act enhance its long-term growth prospects. 

Monarch Cement’s focus on sustainable cement positions it well in an evolving market, while strong pricing power boosts margins. With a robust balance sheet and minimal debt, the company remains financially sound. Operating in a consolidated market with ownership of raw materials, MCEM enjoys a competitive edge, allowing it to respond efficiently to market shifts.

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

Other noteworthy reports we are featuring today include Bristol-Myers Squibb Co. (BMY), Canadian Natural Resources Ltd. (CNQ) and Monster Beverage Corp. (MNST).

Mark Vickery
Senior Editor

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>>>