Yahoo Finance Top Analyst Reports for AstraZeneca, QUALCOMM & FedEx
Thursday, May 3, 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 AstraZeneca PLC (AZN), QUALCOMM Incorporated (QCOM) and FedEx Corporation (FDX). 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 AstraZeneca have gained +4.1% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +20.4%. The company’s key drugs like Lynparza, Tagrisso, Imfinzi, Fasenra, Ultomiris and Farxiga should keep driving revenues. AstraZeneca’s pipeline is strong.
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. Backed by its new products and pipeline drugs, AstraZeneca believes it can post industry-leading top-line growth in the 2025-2030 period.
However, AstraZeneca’s diabetes franchise faces stiff competition while pricing pressure hurts sales in the respiratory unit. Estimates are stable ahead of the Q1 earnings release. The company has a mixed record of earnings surprises in the recent quarters.
(You can read the full research report on AstraZeneca here >>>)
QUALCOMM shares have outperformed the Zacks Wireless Equipment industry over the past year (+73.3% vs. +35.2%). The company reported relatively healthy second-quarter fiscal 2024 results, with the bottom and top lines beating the respective Zacks Consensus Estimate, driven by healthy demand trends in Android handsets and automotive businesses.
QUALCOMM is likely to benefit from the launch of Snapdragon 7 Gen 3 chipsets with advanced AI features for mid-range smartphones and Snapdragon 8s Gen 3 mobile platform for Android flagship smartphones. Healthy 5G traction and Snapdragon Digital Chassis platform are tailwinds. It is focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor firm for the intelligent edge.
However, soft demand trends and elevated inventory levels are concerns. Rising geopolitical conflicts and high debt burden are other headwinds. Softness in IoT business is another challenge.
(You can read the full research report on Qualcomm here >>>)
Shares of FedEx have outperformed the Zacks Transportation - Air Freight and Cargo industry over the past year (+18.1% vs. -3.3%). The company’s efforts to reward shareholders through dividends and buybacks are encouraging. FDX looks to repurchase $2.5 billion of common stock and pay $1.3 billion in dividends during fiscal 2024. FDX's liquidity position is also impressive.
However, it continues to struggle due to the normalization of volume and pricing trends in the post-COVID era. To navigate the weak business environment, FDX is cutting costs. Driven by its cost-saving plan, which is expected to accelerate going forward, operating expenses are declining.
DRIVE initiatives are likely to result in $4 billion cost savings by 2025. For fiscal 2024, FedEx expects revenues to decline in the low single digits from fiscal 2023 actuals due to weakness pertaining to package volumes.
(You can read the full research report on FedEx here >>>)
Other noteworthy reports we are featuring today include American International Group, Inc. (AIG), Halliburton Company (HAL) and Baker Hughes Company (BKR).
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
Key Drugs Aid AstraZeneca (AZN) Sales; Pipeline Strong
Qualcomm (QCOM) Rides on Healthy Automotive, Handset Demand
FedEx (FDX) Rides on Dividends Amid Shipping Volume Woes
Featured Reports
AIG Benefits From Divestitures and Cost Control Measures
Per the Zacks Analyst, business streamlining by selling low-returning businesses and focusing on high-growth businesses enhances operational capacities. Cost-control measures are aiding margins.
Halliburton (HAL) to Benefit from International Growth
The Zacks analyst believes that Halliburton's strong growth at its international business, coupled with margin expansion, positions the company to capitalize on emerging opportunities worldwide.
Major International Gas Projects Aid Baker Hughes (BKR)
Baker Hughes' recent gas technology project awards in Saudi Arabia and Canada should boost the company's revenues. However, increasing total costs and expenses concern the Zacks analyst.
Robust Strategic Gains Aid Labcorp (LH), Rising Debt Worries
Per the Zacks Analyst, Labcorp's strategic wins as a preferred partner, new tests launches and advancements in science and technology should drive top-line growth. Yet, a high debt level is alarming.
Gen Digital (GEN) Rides on Product and Customer Strength
Per the Zacks analyst, Gen Digital is gaining from solid demand for ID theft protection solutions such as dark web monitoring and ID advisor. Continued stabilization of customer count is a positive.
Rising Air Traffic Aid Hexcel (HXL), Rising Fuel Price Ail
Per the Zacks analyst, improving global air traffic has been boosting Hexcel's commercial aerospace business' revenues. Yet rising fuel price may reduce demand for jets thereby impacting Hexcel.
Solid Demand, Pricing Actions Aid Carpenter Technology (CRS)
Per the Zacks analyst, Carpenter Technology is gaining from strong demand across its end-use markets. Cost-reduction initiatives and efforts to preserve liquidity are also driving growth.
New Upgrades
Restructuring Efforts, Acquisitions Aid Morgan Stanley (MS)
Per the Zacks analyst, high rates, strategic alliances, global footprints and Morgan Stanley's focus on less capital-markets dependent operations will keep on aiding financials in the upcoming period.
Growth Projects & Debt Reductions Aid Agnico Eagle (AEM)
Per the Zacks analyst, the company will benefit from investment in growth projects to expand gold production. A lower debt level also enhances its financial flexibility.
Strategic Initiatives Aid Growth at Tenet Healthcare (THC)
Per the Zacks analyst, its solid inorganic growth story on the back of a number of acquisitions and strategic alliances over the past few years has helped Tenet Healthcare grow its scale of business.
New Downgrades
Pipeline Setbacks, HIV Competition Weigh on Gilead (GILD)
Per the Zacks analyst, the recent pipeline setbacks, especially the failure of the lung cancer study on Trodelvy, weigh on Gilead. Competition is stiff in both the HIV market and the oncology space.
Whirlpool's (WHR) Performance Hurt by Multiple Headwinds
Per the Zacks analyst, Whirlpool is grappling with global demand softness and an unfavorable price/mix. This along with a tough market environment has been weighing on the company's performance.
Disappointing Performance in China Hurts Starbucks (SBUX)
Per the Zacks analyst, Starbucks performance continues to be hurt by occasional customers, shifts in holiday patterns, heightened promotional activity and normalization of customer behavior in China.
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AstraZeneca PLC (AZN) : Free Stock Analysis Report
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
Halliburton Company (HAL) : Free Stock Analysis Report
American International Group, Inc. (AIG) : Free Stock Analysis Report
FedEx Corporation (FDX) : Free Stock Analysis Report
Baker Hughes Company (BKR) : Free Stock Analysis Report
