Yahoo Finance Top Analyst Reports for AstraZeneca, NextEra Energy & Boeing Company
Monday, January 23, 2023
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 AstraZeneca PLC (AZN), NextEra Energy, Inc. (NEE) and The Boeing Company (BA). 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 >>>
AstraZeneca shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+21.4% vs. +16.2%). The company’s key drugs, mainly cancer medicines, Lynparza, Tagrisso and Imfinzi should keep driving revenues. Its pipeline is strong with several phase III data readouts lined up.
AstraZeneca has also been engaged in external acquisitions and strategic collaborations to boost its pipeline while investing in geographic areas of high growth like emerging markets. The Alexion buyout strengthens its immunology franchise, adding several drugs that are boosting its top line.
However, AstraZeneca’s diabetes franchise faces stiff competition while pricing pressure hurts sales in the respiratory unit. Sales are slowing down in its key market, China. Estimate movement is mixed ahead of the Q4 earnings release. The company has a positive record of earnings surprises in the recent quarters.
(You can read the full research report on AstraZeneca here >>>)
NextEra Energy shares have outperformed the Zacks Utility - Electric Power industry over the past six months (+1.0% vs. -2.3%). The company continues to expand its operations through the efficient execution of organic projects and acquisitions. The company currently has many renewable projects in its backlog and their completion will ensure reduced emissions.
The merger of Gulf Power and FPL strengthens NextEra’s position in Florida.FPL’s customer base is expanding as Florida’s economy improves and its services become more reliable. Expanding customer base continues to boost demand for its services. NextEra has ample liquidity to meet its near-term debt obligations.
However, the nature of its business is subject to complex federal, state and other regulations. Risk in operating nuclear units, unfavorable weather conditions and an increase in supply costs adversely impact earnings.
(You can read the full research report on NextEra Energy here >>>)
Shares Boeing Company have outperformed the Zacks Aerospace - Defense industry over the past year (+1.2% vs. -8.8%). The company remains the largest aircraft manufacturer in the United States in terms of revenue, orders and deliveries. Lately, the company has been witnessing solid recovery in its commercial business, particularly in domestic air traffic.
The outlook for its defense business also remains optimistic, buoyed by solid U.S. budgetary amendments. It also holds a strong solvency position in the near term. However, the 737 MAX is yet to return to service in China thus impacting its expectation of delivery timing and future gradual production rate increases.
Boeing continues to face production quality issues for its 787 program. Boeing incurred cumulative abnormal costs of $1.4 billion through September 2022 and expects to incur nearly $2 billion for the 787 program.
(You can read the full research report on Boeing Company here >>>)
Other noteworthy reports we are featuring today include BP p.l.c. (BP), The PNC Financial Services Group, Inc. (PNC) and Centene Corporation (CNC).
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. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Cancer Drugs Aid AstraZeneca (AZN) Sales Amid China Impact
Steady Investment & Renewable Focus Aid NextEra Energy (NEE)
Military Business Aids Boeing (BA), Supply Chain Issue Woes
Featured Reports
BP to Benefit From Renewable Energy Project in Australia
Per the Zacks analyst, BP is well-poised to gain from Australia's renewable energy project. The project can be the world's leading producer of green hydrogen. Yet, its rising debt level is concerning.
PNC Financial (PNC) Rides on From Higher Net Interest Income
Per the Zacks analyst, PNC Financial is riding on growing interest income. The company is well-poised to grow on the back of its diverse revenue mix.
Centene (CNC) Rides on Growing Revenues Amid Rising Costs
Per the Zacks analyst, solid Medicaid business, several contract wins and acquisitions continue to drive the company's revenues. However, elevated expenses remain a concern.
Expansion Efforts to Aid Restaurant Brands (QSR), Costs High
Per the Zacks analyst, Restaurant Brands is likely to benefit from unit expansion efforts, menu innovation and loyalty program. However, labor challenges and inflation pressures are a concern.
Veeva Systems (VEEV) Rides on a Slew of Product Launches
The Zacks analyst is upbeat about Veeva Systems introducing few products in the market over the past few months despite its operation in a highly competitive market.
Kellogg (K) Benefits From Price/Mix Amid High Input Costs
Per the Zacks analyst, Kellogg is gaining on solid price/mix, which increased across all regions in third quarter. This works well for the company amid input cost inflation that is likely to persist.
Solid Liquidity Boost Booz Allen (BAH) Despite High Capex
Per the Zacks analyst, increasing current ratio is desirable as it indicates that Booz Allen is able to meet its short-term obligations. However, high expenses remain concerns.
New Upgrades
Acquisitions and Expansion Moves Aid Steel Dynamics (STLD)
Per the Zacks analysts, acquisitions will expand the company's product portfolio and shipping capabilities. Expansion actions should also add to its capacity and boost profitability.
Loan Originations, Earnings Strength Aid Ares Capital (ARCC)
Per the Zacks analyst, driven by a rise in demand for customized financing, Ares Capital is poised for investment income growth. Given its earnings strength, its capital deployments seem sustainable.
NETGEAR (NTGR) To Benefit from Strong Product Portfolio
Per the Zacks analyst, NETGEAR's performance is gaining from continued strength premium in Wi-Fi mesh systems. Also, frequent product launches like Orbi 860 Series are tailwinds.
New Downgrades
Moderna's (MRNA) Overdependence on COVID Jab Revenues A Woe
Though Moderna's COVID vaccine sales have significantly boosted its cash resources, the Zacks Analyst is concerned since the company's other pipeline candidates are years away from commercialization.
Tight Inventory & Falling Used Car Prices Ail Group 1 (GPI)
The Zacks analyst believes that low inventory levels in the new vehicle segment are likely to limit Group 1's top line. Declining average selling prices of used vehicles may further clip margins.
GRAIL Buyout Complications Dent Illumina's (ILMN) Profit
The Zacks Analyst is worried about Illumina's unceasing battle with the European Commission on the GRAIL buyout. These snags are raising legal and goodwill expenses thereby building margin pressure.
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The Boeing Company (BA) : Free Stock Analysis Report
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
AstraZeneca PLC (AZN) : Free Stock Analysis Report
BP p.l.c. (BP) : Free Stock Analysis Report
The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report
Centene Corporation (CNC) : Free Stock Analysis Report
