Top Analyst Reports for Oracle, Micron Technology & Medtronic

Friday, November 8, 2024The 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), Micron Technology, Inc. (MU) and Medtronic plc (MDT), as well as a micro-cap stock The Cato Corp. (CATO). 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 (+78.9% vs. +18.8%). The company’s stock hit 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 AI clientele.  Its share buybacks and dividend policy are noteworthy. The Zacks analyst expect fiscal 2025 net sales to grow 8.7% from fiscal 2024. 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 Micron Technology have outperformed the Zacks Computer - Integrated Systems industry over the year-to-date period (+33.3% vs. +18.1%). The company is gaining from improved market conditions, strong sales executions and robust growth across multiple business units. The positive impact of inventory improvement in the data center and stabilization in other end markets, such as automotive, industrial and others, is adding to top-line growth. Micron expects the pricing of DRAM and NAND chips to surge next year, which will boost its revenues. The pricing benefits should mainly be driven by the high demand for AI servers, which are causing a scarcity in the availability of DRAM and NAND supply. Also, 5G adoption in the Internet of Things devices and wireless infrastructure is expected to spur demand for memory and storage. However, the United States and China’s tit-for-tat trade war is a major threat to the company.(You can read the full research report on Micron Technology here >>>)Medtronic’s shares have gained +9.7% over the year-to-date period against the Zacks Medical - Products industry’s gain of +15.0%. The company is strategically expanding its global presence to address the unmet demand for advanced medical devices. Within Cardiovascular, Medtronic is gaining market share, banking on product launches in CRM and Structural Heart. Hypertension has brought up multibillion-dollar opportunities for MDT. In MedSurg, Medtronic is scaling the production of Hugo RAS. The Surgical and Neuroscience portfolios continues to contribute positively. Further, the company’s Pacing business continued to drive strong growth banking on strong global growth of its Micra leadless pacemaker. Innovations and market expansion efforts are helping it offset the impact of the inflation and supply disruptions. Medtronic’s strong liquidity position should allow it to meet its near-term debt obligations. All these factors support our bullish stance on the stock.(You can read the full research report on Medtronic here >>>)Shares of Cato have gained +2.5% over the past year period against the Zacks Retail - Apparel and Shoes industry’s gain of +26.6%. This microcap company with market capitalization of $129.79 million have strong financial position, with $30.8 million in cash and $69.9 million in working capital, enhances its operational stability and ability to invest in future growth. Improved cost control, with a 7% reduction in SG&A expenses, has bolstered profitability, and net income nearly doubled to $11.1 million for the first half of 2024. The company's disciplined inventory management minimizes markdown risk, preserving margins. Cato’s consistent dividend payments underscore its financial health. Additionally, it is well-positioned to benefit from expected growth in the global apparel market. However, challenges persist with an 8% sales decline due to store closures, weak e-commerce performance (less than 5% of total sales) and inflationary pressures affecting consumer spending. Cato’s reliance on physical stores and exposure to economic cycles further heighten risks.(You can read the full research report on Cato here >>>)Other noteworthy reports we are featuring today include Canadian National Railway Co. (CNI), Arthur J. Gallagher & Co. (AJG) and Coinbase Global, Inc. (COIN).Mark VickerySenior EditorNote: 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 ReadOracle (ORCL) Gains from Cloud Suite Adoption & PartnershipsSupply Stabilization, Higher AI Spending Aids Micron (MU)Medtronic (MDT) Banks on Neuromodulation, New Growth AreasFeatured ReportsDividends & Buyback Aid Canadian National (CNI), Expenses AilThe Zacks analyst likes the shareholder-friendly measures adopted by Canadian National. However, rising operating expenses are concerning as they are likely to keep the bottom line under pressure.Improving Fees and Commissions Aid Arthur J. Gallagher (AJG)Per the Zacks analyst, Arthur J. Gallagher is poised to grow on improving fees and commissions that in turn is driving organic revenues growth. However, rising expenses weighing on margin concerns.Coinbase (COIN) Banks on Improving Top Line, Expenses HurtPer the Zacks analyst, higher transaction revenues, subscription and services revenues, growth in crypto assets should drive Coinbase revenues. However, escalating expenses hurt its margins.Investments Aid Sempra Energy (SRE), Poor Financials WoePer the Zacks analyst, systematic investments in infrastructure are expected to boost Sempra's rate base growth. Yet, the company's poor financial position might remain a concern for its investorsANSYS' (ANSS) Performance Driven by Robust Product PortfolioPer the Zacks Analyst, higher demand for simulation solutions across verticals like aerospace and high tech is driving ANSYS's performance. Increasing expenses and stiff competition are concerning. Solid Transportation Segment Aids Trimble's (TRMB) ProspectsPer the Zacks analyst, Trimble is benefiting from strong momentum in the transportation segment, driven by organic growth in enterprise and strong demand for map solutions.Service Center Unit Aids Applied Industrial (AIT), Costs AilPer the Zacks analyst, Applied Industrial's Service Center Based Distribution segment is driven by sales initiatives and focus on national customer accounts. However, high costs remain concerning.New UpgradesSolid Bookings & Fleet Expansion to Aid Royal Caribbean (RCL)Per the Zacks analyst, Royal Caribbean is likely to benefit from robust booking trends, fleet expansion and digital initiatives. Also, strength in consumer onboard spending bodes well.Cheniere (LNG) to Gain from Sustained Gas Export StrengthThe Zacks analyst believes that being one of the few liquefied natural gas exporters of the U.S., Cheniere Energy is set to capitalize on the sustained strength in shipments to Europe and Asia.Zillow Group (ZG) Rides on Healthy Demand, Portfolio StrengthPer the Zacks analyst, solid traction in the Premier Agent business and strong multi-family listings will likely drive Zillow Group's top line. Focus on AI integration is a tailwind.New DowngradesCSX's Prospects Hurt by High Debt Load & Soft Coal MarketThe Zacks analyst is concerned about the weak coal market, which has resulted in below-par coal revenues. CSX's high debt levels are also worrisome.Hershey (HSY) Remains Troubled by Increasing Commodity CostsPer the Zacks analyst, Hershey is seeing higher commodity costs. In Q3, adjusted gross margin contracted 460 basis points due to higher commodity costs and fixed cost deleverage among other reasons.High Costs and Strict Regulation Hurt Franklin (BEN) Growth.Per the Zacks analyst, Franklin's rising cost will hurt the bottom-line growth. Numerous regulations by U.S. and non-U.S. regulators add further complexity to ongoing operations.Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.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 Canadian National Railway Company (CNI): Free Stock Analysis Report Medtronic PLC (MDT): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report Arthur J. Gallagher & Co. (AJG): Free Stock Analysis Report Cato Corporation (The) (CATO): Free Stock Analysis Report Coinbase Global, Inc. (COIN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks