The Zacks Analyst Blog Highlights: Microsoft, American Express, Fidelity National Information Services, Goldman Sachs and Southern

Zacks Equity Research

For Immediate Release

Chicago, IL – January 20, 2020 – 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 MSFT, American Express AXP, Fidelity National Information Services FIS, Goldman Sachs GS and Southern SO.

Here are highlights from Friday’s Analyst Blog:

Top Stock Analyst Reports for Microsoft, American Express and Others

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, American Express and Fidelity National Information Services. 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 >>>

Microsoft’s shares have outperformed the S&P 500 over the past year (+54.3% vs. +23.3%) and the Zacks analyst expects this momentum continuing on the back of a growing user base of its different applications like Office 365 commercial, Dynamics, Outlook mobile and Teams.

Moreover, Azure’s expanding customer base is a key catalyst. Microsoft’s gaming segment is performing well, primarily driven by a combination of Xbox Live, Game Pass subscriptions and Mixer, which are driving user engagement. Further, acquisitions like PlayFab and GitHub expand Microsoft’s total addressable market (TAM) and penetration. Additionally, latest contract wins from the Department of Defense remain notable.

However, projections of a moderating growth rate in commercial cloud gross margin, and OEM Pro and Windows commercial businesses is a headwind. Moreover, stiff competition from the likes of Google, Apple, and Sony is a woe.

Shares of American Express have gained +11.8% in the past three months against the Zacks Financial Miscellaneous Services industry's rise of +9.1%. The Zacks analyst believes that its expanding presence in the business-to-business market and investment in technology should drive long-term growth. 

Its revenue growth is driven by a strong brand, continued efforts toward building business in new growth verticals, shift toward digital, focus on initiatives and a strong economy, which are driving consumer spending. Its strong capital position and disciplined capital management by way of share buyback and dividend payouts are impressive.

However, the company's reward expenses have been increasing over the past many quarters, which weigh on margins. Cost of card member services has been increasing over the years, indicating higher engagement level across its premium travel services.

Fidelity National Information Services’ shares have gained +11.3% over the past six months against the Financial Transaction Services industry's rise of +10%. The Zacks analyst believes that the company remains well positioned for growth backed by attractive core business with a recurring revenue model and several ongoing strategic initiatives.

Acquisition of Worldpay is likely to accelerate its growth by boosting presence in faster growing markets. Also, the deal will provide synergies of $700 million from revenue and cost savings over next three years. However, the company remains exposed to consolidation in the banking sector and significant competition from new entrants. Also, unsustainable capital deployment activities remain a concern.

Other noteworthy reports we are featuring today include Goldman Sachs and Southern.

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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/performancefor information about the performance numbers displayed in this press release.


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Southern Company (The) (SO) : Free Stock Analysis Report
 
Microsoft Corporation (MSFT) : Free Stock Analysis Report
 
The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
 
American Express Company (AXP) : Free Stock Analysis Report
 
Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report
 
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