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The Zacks Analyst Blog Highlights: Microsoft, Thermo Fisher, Union Pacific, Facebook and BHP
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For Immediate Release
Chicago, IL – February 25, 2021 – 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 Corporation (MSFT - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) , Union Pacific Corporation (UNP - Free Report) , Facebook, Inc. and BHP Group (BHP - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Q4 Earnings Reports and Analyst Reports for Microsoft, Thermo Fisher and Union Pacific
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time scorecard for the Q4 earnings season and new research reports on 16 major stocks, including Microsoft, Thermo Fisher and Union Pacific. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Q4 Earnings Season Scorecard (As of February 24th)
For the 449 S&P 500 members or 89.8% of the index's membership that have reported Q4 results already, total earnings (or aggregate net income) is up +3.6% from the same period last year on +3% higher revenues, with 79.3% beating EPS estimates and 76.4% beating revenue estimates. This is a very strong showing relative to other recent periods for this group of 449 index members.
Looking at Q4 as a whole, combining the actuals from the 449 index members with estimates for the still-to-come companies, Q4 earnings are on track to +3.3% on +3% higher revenues. The trend on the estimate revisions front remains positive, with estimates for the current period (2021 Q1) steadily going up.
Total 2021 Q1 estimates for the index are for +17.8% earnings growth on +4.9% revenue growth, with the earnings growth estimate up from +12.6% at the start of January 2021 and +11.7% in mid-December 2020.
Today's Featured Research Reports
Microsoft shares have outperformed the broader S&P 500 index over the past year (+38.8% vs. +26.2%), though the stock has lagged lately in solidarity with the other large-cap technology stocks as interest rates have perked up. The Zacks analyst believes that Microsoft should continue to benefit from strong momentum in Azure, impressive Teams user growth triggered by coronavirus-led digital transformation, work-from-home, online learning wave and tele healthcare trends.
Solid uptake of new Xbox gaming consoles and Xbox Game Pass drove the top-line growth. Further, the company is gaining from the growing user base of its different applications including Microsoft 365 suite, and Dynamics.
However, macroeconomic weakness in the job market and lower spend on advertising due to coronavirus pandemic are likely to put pressure on LinkedIn and Search revenues. Further, delays in consulting business are anticipated to limit growth. Increasing spend on Azure enhancements amid stiff competition from Amazon Web Services, is likely to impede margin expansion.
Shares of Thermo Fisher have gained +8.6% in the last six months against the Zacks Medical Instruments industry's gain of +5%. The Zacks analyst believes that several takeovers, including Advanced Bioprocessing buyout from BD and Patheon, have helped Thermo Fisher expand its inorganic growth profile.
Furthermore, the company's strong focus on emerging market is also encouraging. However, the coronavirus outbreak has massively disrupted the global supply chain. Foreign currency fluctuations and competitive landscape are major downsides.
Meanwhile, the company delivered an outstanding quarterly performance by leveraging on its capacity to extend support amid the pandemic. COVID-19 response revenue increased to $3.2 billion in the fourth quarter of 2020. The base business also grew 5%.
Union Pacific shares have lost -0.1% over the past three months against the Zacks Rail industry's gain of +2.7%. The Zacks analyst is, however, pleased with the company's efforts toward promoting safety and enhancing productivity.
Moreover, reflective of the improving freight conditions in the United States, Union Pacific reported a 3% year-over-year increase in overall volumes, measured by total revenue carloads, in fourth-quarter 2020. Notably, revenue carloads rose 9% in the Premium unit, thereby boosting overall volumes.
However, tepid automotive demand hurt fourth-quarter results. Deterioration in the debt-to-EBITDA ratio is another concern. Moreover, despite the recent uptick, freight revenues continue to be weak on a year-over-year basis.
Other noteworthy reports we are featuring today include Facebook and BHP.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it's expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks' just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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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The Zacks Analyst Blog Highlights: Microsoft, Thermo Fisher, Union Pacific, Facebook and BHP
For Immediate Release
Chicago, IL – February 25, 2021 – 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 Corporation (MSFT - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) , Union Pacific Corporation (UNP - Free Report) , Facebook, Inc. and BHP Group (BHP - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Q4 Earnings Reports and Analyst Reports for Microsoft, Thermo Fisher and Union Pacific
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time scorecard for the Q4 earnings season and new research reports on 16 major stocks, including Microsoft, Thermo Fisher and Union Pacific. 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 >>>
Q4 Earnings Season Scorecard (As of February 24th)
For the 449 S&P 500 members or 89.8% of the index's membership that have reported Q4 results already, total earnings (or aggregate net income) is up +3.6% from the same period last year on +3% higher revenues, with 79.3% beating EPS estimates and 76.4% beating revenue estimates. This is a very strong showing relative to other recent periods for this group of 449 index members.
Looking at Q4 as a whole, combining the actuals from the 449 index members with estimates for the still-to-come companies, Q4 earnings are on track to +3.3% on +3% higher revenues. The trend on the estimate revisions front remains positive, with estimates for the current period (2021 Q1) steadily going up.
Total 2021 Q1 estimates for the index are for +17.8% earnings growth on +4.9% revenue growth, with the earnings growth estimate up from +12.6% at the start of January 2021 and +11.7% in mid-December 2020.
Today's Featured Research Reports
Microsoft shares have outperformed the broader S&P 500 index over the past year (+38.8% vs. +26.2%), though the stock has lagged lately in solidarity with the other large-cap technology stocks as interest rates have perked up. The Zacks analyst believes that Microsoft should continue to benefit from strong momentum in Azure, impressive Teams user growth triggered by coronavirus-led digital transformation, work-from-home, online learning wave and tele healthcare trends.
Solid uptake of new Xbox gaming consoles and Xbox Game Pass drove the top-line growth. Further, the company is gaining from the growing user base of its different applications including Microsoft 365 suite, and Dynamics.
However, macroeconomic weakness in the job market and lower spend on advertising due to coronavirus pandemic are likely to put pressure on LinkedIn and Search revenues. Further, delays in consulting business are anticipated to limit growth. Increasing spend on Azure enhancements amid stiff competition from Amazon Web Services, is likely to impede margin expansion.
(You can read the full research report on Microsoft here >>>)
Shares of Thermo Fisher have gained +8.6% in the last six months against the Zacks Medical Instruments industry's gain of +5%. The Zacks analyst believes that several takeovers, including Advanced Bioprocessing buyout from BD and Patheon, have helped Thermo Fisher expand its inorganic growth profile.
Furthermore, the company's strong focus on emerging market is also encouraging. However, the coronavirus outbreak has massively disrupted the global supply chain. Foreign currency fluctuations and competitive landscape are major downsides.
Meanwhile, the company delivered an outstanding quarterly performance by leveraging on its capacity to extend support amid the pandemic. COVID-19 response revenue increased to $3.2 billion in the fourth quarter of 2020. The base business also grew 5%.
(You can read the full research report on Thermo Fisher here >>>)
Union Pacific shares have lost -0.1% over the past three months against the Zacks Rail industry's gain of +2.7%. The Zacks analyst is, however, pleased with the company's efforts toward promoting safety and enhancing productivity.
Moreover, reflective of the improving freight conditions in the United States, Union Pacific reported a 3% year-over-year increase in overall volumes, measured by total revenue carloads, in fourth-quarter 2020. Notably, revenue carloads rose 9% in the Premium unit, thereby boosting overall volumes.
However, tepid automotive demand hurt fourth-quarter results. Deterioration in the debt-to-EBITDA ratio is another concern. Moreover, despite the recent uptick, freight revenues continue to be weak on a year-over-year basis.
(You can read the full research report on Union Pacific here >>>)
Other noteworthy reports we are featuring today include Facebook and BHP.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it's expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks' just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>
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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.