Yahoo Finance Top Analyst Reports for Alphabet, Raytheon Technologies & Blackstone
Tuesday, May 23, 2023
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 Alphabet Inc. (GOOGL), Raytheon Technologies Corporation (RTX) and Blackstone Inc. (BX). 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 >>>
Alphabet shares have handily outperformed the Zacks Tech sector this year (+41.7% vs. +27.4%) as well as the perceived AI rival Microsoft (which is up +33.9%). The company’s strong cloud division is aiding substantial revenue growth. Moreover, expanding data centers will continue to bolster its presence in the cloud space. Further, major updates in its search segment are enhancing the search results.
Also, strong focus on innovation of AI techniques and the home automation space should aid business growth in the long term. Further, its deepening focus on wearables category remains a tailwind. Also, Alphabet’s expanding presence in the autonomous driving space is contributing well. Its growing efforts to gain foothold in the healthcare industry are other positives.
However, sluggishness in the company’s advertisement business remains a major headwind. Also, its growing litigation issues and increasing expenses are concerns.
(You can read the full research report on Alphabet here >>>)
Shares of Raytheon Technologies have gained +5.0% over the past year against the Zacks Aerospace - Defense Equipment industry’s gain of +8.6%. The company continues to receive ample orders for its combat-proven defense products, and expects both domestic and international program growth to remain robust for its defense business.
A steady recovery in commercial air traffic continues to improve its commercial aerospace sales. The stock holds a solid solvency position. Yet, economic sanctions imposed by governments in response to Russia’s invasion of Ukraine might hurt Raytheon.
However, a comparative analysis of its trailing 12-month price/book ratio indicates a relatively gloomy picture, which may concern investors. The appreciating U.S. dollar has been burdening airlines, which may hurt the stock.
(You can read the full research report on Raytheon Technologies here >>>)
Shares of Blackstone have declined -2.2% over the past six months against the Zacks Financial - Miscellaneous Services industry’s decline of -6.0%. The company’s first-quarter 2023 results reflect a tough operating backdrop and lower expenses.
Strong fund-raising ability, revenue mix, global footprint and solid assets under management (AUM) balance will keep aiding financials. However, elevated expenses are likely to hurt the company's bottom-line growth.
Further, lower chances of sustainability of its capital deployment activities remain a woe. At present, the company is facing unprecedented outflows in some of its funds, which might hurt financials.
(You can read the full research report on Blackstone here >>>)
Other noteworthy reports we are featuring today include SAP SE (SAP), BlackRock, Inc. (BLK) and CVS Health Corporation (CVS).
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>>>
Today's Must Read
Alphabet (GOOGL) Benefits From Cloud & Search Initiatives
Order Growth Aids Raytheon (RTX) Amid Jet Fuel Price Hike
Fund-Raising Ability Aids Blackstone (BX), High Costs Ails
Featured Reports
Softness in Software License, High Operating Costs Ail SAP
Per the Zacks analyst, SAP is likely to be plagued by continued softness in software license and support business. High operating cost and stiff competition in the cloud space also strain its margins.
Buyouts, Active Equity Focus Aid BlackRock (BLK), Costs Ail
Per the Zacks analyst, BlackRock's acquisition efforts and initiatives to restructure the active equity business will aid the top line. These efforts might lead to higher costs, thus hurting profits.
CVS Health (CVS) Pharmacy Business Grows Amid Stiff Rivalry
The Zacks analyst is impressed with CVS Health's growth in pharmacy revenues in Q1 driven by pharmacy claims growth, specialty pharmacy, and brand inflation. Yet, stiff rivalry remains a concern.
Strategic Buyouts Aid Intercontinental (ICE), High Costs Ail
Per the Zacks Analyst, a number of acquisitions will help Intercontinental expand its business, which, in turn, will lead to top-line growth. Increasing operating expenses remain a concern.
Beer Business to Boost Constellation Brands' (STZ) Feat
Per the Zacks analyst, Constellation Brands is gaining from solid demand in beer business, particularly Modelo Especial and Corona Extra. FY24 sales are likely to grow 7-9% for the segment.
Engine Products Segment Aids Howmet (HWM) Amid Forex Woes
Per the Zacks analyst, Howmet's Engine Products Segment is driven by strength in the commercial aerospace and defense aerospace end markets. However, forex woes remain a concern for the company.
FactSet (FDS) to Gain from CUSIP Acquisition, Low Liquidity Ail
Per the Zacks analyst, the CUSIP Global Services acquisition is expected to enhance FactSet's position in the global capital markets. Low liquidity remains a concern.
New Upgrades
Zillow Group (ZG) Rides on High Visitor Rate, App Downloads
Per the Zacks analyst, Zillow Group is likely to benefit from a high visitor rate backed by improvement in product lines, as it enhances the probability of generating leads for agent advertisers.
Murphy USA (MUSA) Gains from Proximity to Walmart Stores
The Zacks analyst likes the proximity of Murphy USA's fuel stations to Walmart supercenters and the consistent traffic that these stores attract, thereby driving above-average fuel sales volume.
Solid Buyouts & New Product Sales Aid UFP Industries (UFPI)
Per the Zacks analyst, UFP Industries benefits from accretive acquisitions and increased new product sales. Also, strong contribution from UFP Packaging adds to the growth.
New Downgrades
Customer Inventory Reduction Actions Hurt's Marvell (MRVL)
Per the Zacks analyst, customers inventory reduction actions to manage excess chip inventories along with weakening consumer spending are likely to hurt Marvell's near-term growth prospects.
Soft Office Demand, High Interest Rates Hurt Vornado (VNO)
Per the Zacks analyst, a choppy office market environment and rising interest rates are expected to weigh on Vornado's growth in the near term.
Emergent's (EBS) Declining Product Revenues Is a Concern
Zacks analyst is concerned about Emergent's falling revenues due to lower anthrax vaccine deliveries and the launch of generic drug Narcan. This sales decline could harm the company's future prospects
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Blackstone Inc. (BX) : Free Stock Analysis Report
BlackRock, Inc. (BLK) : Free Stock Analysis Report
SAP SE (SAP) : Free Stock Analysis Report
CVS Health Corporation (CVS) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Raytheon Technologies Corporation (RTX) : Free Stock Analysis Report
