Top Research Reports for Microsoft, Visa & Cisco

Monday, January 24, 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), Visa Inc. (V), and Cisco Systems, Inc. (CSCO). 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 >>>

Shares of Microsoft have outperformed the S&P 500 over the past year (+30.1% vs. +15.9%) on the back of momentum in its Azure cloud platform.

The Zacks analyst noted that the stock has been under pressure lately on account of broad market-wide weakness and unease around its Activision Blizzard acquisition, but the company's long-term outlook remains very attractive. 

The continuation of remote work and adoption of hybrid work model has been boosting the Teams’ user growth. Solid uptake of new Xbox consoles is also aiding the gaming segment performance. Microsoft is also witnessing growth in user base of its different applications including Microsoft 365 suite, Dynamics and Power Platform. Increased spending on Azure enhancements and stiff competition in the cloud space, however, are likely to dent margins.

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

Visa shares have lost -17.4% over the past six months against the Zacks Financial Transaction Services industry’s loss of -26.5%, however, things seem to be improving for it. The Zacks analyst believes that numerous buyouts and alliances have paved way for Visa’s long-term growth. Investments in technology have solidified Visa’s position in the payments market.

Coronavirus vaccine rollouts and the gradual revival of consumer confidence will keep driving spending, expanding business volumes in turn. Backed by its strong cash position, the company remains committed to boost its shareholder value. High operating expenses and ramped-up client incentives, however, are likely to weigh on the margins. Visa's declining Cash Volume from the Asia Pacific and Europe are concerning.

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

Shares of Cisco have gained +3.4% in the last three months against the Zacks Computer Networking industry’s gain of +3.6%. Component shortages and ongoing supply chain issues are expected to persist in the second half of fiscal 2022 and bump up costs. This is likely to dent revenues and margin expansion.

The Zacks analyst, however, believes that Cisco has been benefiting from strength in its product portfolio and momentum in product order growth. Strength in Webscale business and solid uptake of switching solutions is a major tailwind. A healthy uptake of identity and access, advanced threat and unified threat management security solutions amid high growth in Internet traffic is another catalyst for growth.

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

Other noteworthy reports we are featuring today include Berkshire Hathaway Inc. (BRK.B), Eli Lilly and Company (LLY) and Thermo Fisher Scientific Inc. (TMO).

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>>>

Today's Must Read

Adoption of Cloud & Office 365 Strength Aid Microsoft (MSFT)

Visa (V) Banks on Renewed Agreements, Rising Costs Hurt

Cisco (CSCO) Gains From Security Products & Strategic Deals

Featured Reports

Solid Insurance Business Aid Berkshire (BRK.B), Cat Loss Ail
Per the Zacks analyst, Berkshire is posed to grow on solid insurance business that drives earnings and generates maximum return on equity.

Eli Lilly (LLY) Boasts Solid Diabetes & Alzheimer's Pipeline
Lilly recently submitted regulatory applications for tirzepatide for type II diabetes and donanemab for early Alzheimer's disease, per the Zacks analyst.

COVID-19 Test Demand Aid Thermo Fisher (TMO), Forex Woes Ail
The Zacks analyst is impressed with Thermo Fisher witnessing strong COVID-19 testing demand globally in recent times with the surge of new virus variants.

New Drugs Fuel Novartis (NVS), Generic Competition A Headwind
Per the Zacks analyst, Cosentyx and Entresto along with Zolgensma and Kesimpta boost Novartis. However, the generics business remains weak.

Buyout, Restructuring Aid Morgan Stanley (MS) Amid Low Rates
Per the Zacks analyst, Morgan Stanley's inorganic growth efforts and focus on less capital-markets dependent businesses will likely continue to support top-line growth amid relatively lower rates.

Fiserv (FISV) Benefits From Acquisitions Amid High Debt
The Zacks analyst is impressed with Fiserv's strategy to widen its client base and enhance its product portfolio with the help of acquisitions.

Beer Business to Boost Constellation Brands' (STZ) Feat
Per the Zacks analyst, Constellation Brands is gaining from strength in beer business on robust consumer demand and share gains for its iconic brands, particularly Modelo Especial and Corona Extra.

New Upgrades

Loan Diversification, Rising Deposit Aid Signature Bank (SBNY)
Per the Zacks analyst, Signature Bank benefits from diversifying lending verticals. Rising deposits, backed by its Signet platform, offer a source of funding and revenue growth.

Loans, Fee Income Aid Commerce Bancshares (CBSH) Revenues
Per the Zacks analyst, robust loans and deposit balances, efforts to strengthen fee income and solid balance sheet will aid Commerce Bancshares' top line despite relatively low-interest rate backdrop.

High-Quality Eagle Ford Acreage to Aid Magnolia (MGY)
The Zacks analyst believes that Magnolia Oil and Gas' high-quality acreage in the core of the Eagle Ford provides it with attractive economics, industry-leading break evens, and fast payback.

New Downgrades

Strict Regulations, Unplanned Outages Hurt FirstEnergy (FE)
Per the Zacks analyst, legal requirements will hurt FirstEnergy's profitability and unplanned outages might create operational difficulties.

Higher Input & Production Costs Hurt Kronos Worldwide (KRO)
Per the Zacks analyst, a spike in raw material costs due to disruptions in global supply chains will weigh on the company's bottom line. It also faces headwinds from higher production costs.

Higher Costs & Supply Chain Issues Hurt U.S. Silica (SLCA)
The Zacks analyst is concerned that supply-chain challenges could hurt the company's performance. Higher logistics and natural gas costs might also impact its results.

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Microsoft Corporation (MSFT) : Free Stock Analysis Report
 
Visa Inc. (V) : Free Stock Analysis Report
 
Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
 
Eli Lilly and Company (LLY) : Free Stock Analysis Report
 
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
 
Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report
 
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