Top Analyst Reports for Oracle, Morgan Stanley & Palo Alto Networks
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>>>
Today's Must Read
Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships
Expansion Efforts Aid Morgan Stanley (MS), High Costs a Woe
Palo Alto (PANW) Rides on Shift to Subscription Services
Featured Reports
New Drugs Fuel Bristol Myers (BMY) Amid Generic Competition
Per the Zacks analyst, encouraging uptake of new drugs fuel growth for Bristol Myers. However, one of the top drugs Revlimid is facing generics, which has adversely impacted sales.
Diverse Production Mix to Aid Canadian Natural (CNQ)
The Zacks analyst believes that Canadian Natural's diverse product mix supports long-term value and mitigates risk but is worried about the company's debt maturities each year out till 2027.
Planned Investments, Permian Basin Focus Aid Occidental (OXY)
Per the Zacks analyst Occidental's investments to strengthen infrastructure and expansion of Permian Basin operation through acquisition will drive its performance over the long run.
Loan Originations Aid Ares Capital (ARCC), High Costs a Woe
Per the Zacks analyst, driven by rising demand for customized financing, Ares Capital is poised for investment income growth. Higher costs, mainly due to its expansion strategy, might hurt profits.
Encompass Health (EHC) Rides on Strong Volumes Amid High Costs
Per the Zacks Analyst, Encompass Health's top line has been fueled by growing patient volumes and inorganic growth initiatives. However, high expenses continue to weigh on margins.
Blackberry's (BB) Performance Gains From Uptake of Solutions
Per the Zacks Analyst, Blackberry's performance is gaining from rapid adoption of the QNX platform and cybersecurity solutions but headwinds faced by automakers are likely to impact the business.
Potential in Oncology Product Pipeline Aids OPKO Health (OPK)
The Zacks analyst is upbeat about OPKO Health's advancement of its antiviral and immune-oncology product pipeline despite its business being exposed to foreign exchange volatility.
New Upgrades
Monster Beverage (MNST) Benefits From Energy Drinks Unit
Per the Zacks analyst, Monster Beverage is experiencing strength in its energy drinks category for a while. In second-quarter 2024, the Monster Energy Drinks segment's sales grew 3.3% year over year.
Carvana (CVNA) to Get a Boost From Cost Containment Efforts
The Zacks analyst is optimistic about Carvana's operational efficiency efforts, which will buoy margins. CVNA expects 2024 adjusted EBITDA to rise to $1-$1.2 billion, up from $339 million last year.
DocuSign (DOCU) Gains From eSignature Strength, Investments
The Zacks analyst is positive about DocuSign's top line as it is significantly benefiting from continued customer demand for eSignature. Investments in technical expertise are also reaping benefits.
New Downgrades
Nu Skin (NUS) Revenues Hurt by Consumer Spending Challenges
Per the Zacks analyst, Nu Skin is battling macroeconomic challenges, which have been putting pressure on consumer spending and customer acquisition. Management expects revenues to decline in 2024.
Higher Input Costs & Destocking Ail Ingevity (NGVT)
Per the Zacks analyst, higher crude tall oil prices will hurt margins in the company's Performance Chemicals unit. Customer destocking may also affect volumes in industrial specialties.
Dismal Comps & High Costs Hurt McDonald's (MCD) Prospects
Per the Zacks analyst, McDonald's business is being hurt by lower global and U.S. comps. Also, persisting labor inflation and stiff competition are added headwinds.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Morgan Stanley (MS) : Free Stock Analysis Report
Oracle Corporation (ORCL) : Free Stock Analysis Report
Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
The Monarch Cement Co. (MCEM): Free Stock Analysis Report