Monday, July 8, 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 Thermo Fisher Scientific Inc. (TMO), Eaton Corporation plc (ETN) and Palo AltoNetworks, Inc. (PANW). 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 >>>
Thermo Fisher shares have outperformed the Zacks Medical – Instruments industry over the past year (+4.5% vs. +0.6%). The Zacks analyst believes that by utilizing the PPI Business System, by expanding bioproduction purification resin capacity and through introduction of the Axiom PangenomiX Array, Thermo Fisher has been showing strong financial results. Innovation and improvement in patient care and a strong solvency position have also boosted the company’s position.
Yet, year-over-year decline in revenues in Life Science Solutions and Laboratory Products and Biopharma Services have ailed.
(You can read the full research report on Thermo Fisher here >>>)
Eaton shares have outperformed the Zacks Manufacturing – Electronics industry over the past year (+56.3% vs. +23.8%). The Zacks analyst believes that expansion via mergers and acquisitions, rising demand from the new AI data center and reduction in production costs have been benefitting the company.
However unpredictable currency translation, cyber security threats, changes in tax rates and security breaches remain major headwinds. The shortage of raw materials and supplier insolvencies might impact production and operations.
(You can read the full research report on Eaton here >>>)
Shares of Palo Alto have underperformed the Zacks Internet – Software industry over the last six months (+13.9% vs. +20.2%). Per the Zacks analyst, the company’s high acquisition-related expenses are denting its margins. Softening IT spending amid macroeconomic headwinds might also hurt its near-term prospects. Forex headwinds and higher marketing and sales expenses are likely to continue hurting its profitability.
Yet, continuous deal wins and the increasing adoption of its next-generation security platforms, sustained focus on product innovation, the shift to subscription-based services and normalization of its supply chain across platforms are going to boost the company’s prospects.
(You can read the full research report on Palo Alto here >>>)
Other noteworthy reports we are featuring today include Manulife Financial Corporation (MFC), Keurig Dr Pepper Inc. (KDP) and Yum! Brands, Inc. (YUM).
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.
Today’s Must Read
Wide Market Reach, New Product Development Aid Eaton (ETN)
New Product Rollouts, PPI Upgrades Aid Thermo Fisher (TMO)
Palo Alto (PANW) Rides on Product Strength, Marketing Effort
Featured Reports
Xenon (XENE) Lead Candidate Progressing Well, Dependency a Woe
Per the Zacks’s Analyst, Xenon’s clinical studies on azetukalner for treating epilepsy and other neuro disorders are progressing well. However, the lack of other candidates in its pipeline is a woe.
Air Lease (AL) Rides on Fleet Growth, Rising Expenses Ail
The Zacks Analyst is impressed with the fact that fleet growth is aiding Air Lease’s top line. However, rising operating expenses might weigh on its bottom line.
Gap’s (GPS) Cost-Control & Other Initiatives Seem Promising
Solid Asia Operation Aid Manulife (MFC), High Expenses Ail
Per the Zacks analyst, Manulife is set to grow on strong Asian business as well as expansion of Wealth and Asset Management business. However, increase in expenses weighing on margin concern.
Strategic Initiatives Aid Acuity Brands (AYI), High Costs Ail
Per the Zacks analyst, Acuity Brands is benefiting from cost-savings and product innovation initiatives. However, high employee-related and production costs, and soft ABL segment’s sales ail.
Keurig Dr Pepper (KDP) Gains From Brand Strength & Pricing
Per the Zacks analyst, Keurig Dr Pepper is benefiting from brand strength and pricing actions. Continued momentum in the Refreshment Beverages segment has been contributing to its results.
Unit Expansion Aid Yum! Brands (YUM), Dismal Comps Hurt
Per the Zacks analyst, Yum! Brands benefit from focus on unit development commitments, menu innovation and deployment of proprietary digital and AI-powered platforms. However, dismal comps hurt.
New Upgrades
Investments, Appalachian Assets Aid National Fuel Gas (NFG)
Per the Zacks analyst, National Fuel Gas’ systematic investment to further strengthen its midstream operations and strong presence in the Appalachian region will boost its performance.
Telephone and Data Systems (TDS) Rides on Solid Fiber Growth
Per the Zacks analyst, strong growth in residential broadband connections, backed by significant investment in fiber network infrastructure, will likely drive Telephone and Data Systems’ top line.
Rising Auto Loans Demand To Aid Credit Acceptance (CACC)
Per the Zacks analyst, Credit Acceptance will continue to benefit from a boost in auto loan demand and a rise in net finance charges. Also, a solid balance sheet keeps share repurchases sustainable.
New Downgrades
High Input Costs to Hurt Phillips 66’s (PSX) Refining Margin
Phillips 66’s refining business may face reduced profitability due to higher crude oil prices and volatile feedstock costs. Its significant exposure to debt capital also concerns the Zacks analyst.
Lower Industry Demand & Rising Debt Ail CNH Industrial (CNH)
Per the Zacks analyst, a downward revision in the agricultural segment outlook due to lower demand might hit CNH Industrial’s top-line growth. The rising debt level also remains a concern.
Macro Headwinds to Hurt Yelp’s (YELP) Advertising Revenues
Per the Zacks analyst, Yelp’s near-term prospects look gloomy as macroeconomic challenges including higher inflation and interest rates are expected to hurt customers’ ad spending in the near term.
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
Eaton Corporation, PLC (ETN) : Free Stock Analysis Report
Yum! Brands, Inc. (YUM) : Free Stock Analysis Report
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
Manulife Financial Corp (MFC) : Free Stock Analysis Report
Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
Keurig Dr Pepper, Inc (KDP) : Free Stock Analysis Report