Yahoo Finance Top Analyst Reports for Comcast, Linde and Marsh & McLennan
Friday, September 1, 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 Comcast Corporation (CMCSA), Linde plc (LIN) and Marsh & McLennan Companies, Inc. (MMC). 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 >>>
Comcast shares have outperformed the Zacks Cable Television industry over the year-to-date period (+36.7% vs. +24.1%). The company is benefiting from a growing wireless subscriber base as witnessed in the second quarter of 2023. The technology will help it in expanding much faster and at a lower cost compared to competitors.
Recovery in park and movie business bodes well for Comcast’s profitability. Its streaming service Peacock is a key catalyst in driving broadband sales. Strong free cash flow generation ability is noteworthy.
However, Comcast persistently suffers from video-subscriber attrition due to cord cutting. Moreover, broadband prospects are suffering from increased competition from fixed wireless as well as fiber. Additionally, a leveraged balance sheet is a major concern.
(You can read the full research report on Comcast here >>>)
Shares of Linde have outperformed the Zacks Chemical - Specialty industry over the year-to-date (+19.5% vs. +11.3%). With a wide range of applications for its industrial gases, Linde is making the world more productive by the day. The company’s primary products in industrial gases include oxygen, which is used as life support in hospitals.
Linde has long-term contracts with on-site customers backed by minimum purchase requirements, thereby securing stable cashflows. In the profitable industrial gas market, the merger of Praxair and Linde has created an efficient player with considerable size advantages. Linde reported strong second quarter earnings aided by higher pricing from its Americas segment.
However, increasing competition for new projects and developments in emerging markets is concerning. The firm is extremely vulnerable to uncertainty associated with the slowdown of economic growth, as this could hurt demand for its industrial gases.
(You can read the full research report on Linde here >>>)
Marsh & McLennan’s shares have outperformed the Zacks Insurance - Brokerage industry over the year-to-date period (+19.1% vs. +14.4%). The company is well-poised to grow on the back of acquisitions made within its operating units, the launch of new products and branching out into new businesses.
Revenues have been increasing thanks to a wide geographic presence and strong client retention. The Risk and Insurance Services unit has been contributing to revenue growth for a while. Solid cash flows enable business investments. MMC had around $3.7 billion left under authorization as of Jun 30, 2023.
However, escalating operating costs might weigh on the margins. The metric jumped 6.1% y/y in 1H23. A debt-laden balance sheet is a concern. Its valuation remains stretched at the current level. As such, the stock warrants a cautious stance.
(You can read the full research report on Marsh & McLennan here >>>)
Other noteworthy reports we are featuring today Alphabet Inc. (GOOGL), UBS Group AG (UBS) and Motorola Solutions, Inc. (MSI).
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
Wireless Subscriber Gain Drives Comcast's (CMCSA) Prospects
Linde's (LIN) Long-Term Contracts With Minimum Volume Aids
Marsh & McLennan (MMC) Strategic Buyouts Aid, Expenses High
Featured Reports
Solid Momentum in Cloud Business Benefits Alphabet (GOOGL)
Per the Zacks analyst, Alphabet's cloud arm is riding on expanding data center network and growing number of regions. Also, strengthening cloud computing solutions portfolio is a positive.
Credit Card Business Aids Capital One (COF) Amid Cost Woes
Per the Zacks analyst, Capital One's solid card and online banking business, along with its inorganic growth efforts will aid revenues. Elevated costs due to rise in marketing costs will hurt profits.
Targa (TRGP) To Benefit From Mont Belvieu Fractionator
The Zacks analyst believes that Mont Belvieu's ownership, strategic location, infrastructure, and proximity to end markets are advantages for TRP but is worried about the high debt burden.
Diversified Portfolio Aids Omnicom (OMC) Amid Currency Risks
Per the Zacks analyst, Omnicom's diverse industry presence ensures revenue stability and agility in navigating the market's evolving landscape. Global presence exposes it to forex risk.
Acquisitions, Diverse Customer Base Aid NRG Energy (NRG)
Per the Zacks analyst NRG Energy's organic and inorganic acquisitions, is likely to boost its results. Its diverse customer base and retention of customers increases earnings predictability.
Product Innovation Aid UFP Industries (UFPI), High Costs Ail
Per the Zacks analyst, UFP Industries benefits from new product innovations. Also, focus on acquisition bodes well. However, high operational costs and ongoing economic uncertainties are concerns.
Exparel Sales Continue to Boost Pacira (PCRX), Overdepence A Woe
Per the Zacks Analyst, Exparel sales are expected to boost Pacira in the upcoming quarters as its customer base expands. However, Pacira's overdependence on Exparel sales is a concern.
New Upgrades
Credit Suisse Buyout, Digitization to Aid UBS Group AG (UBS)
Per the Zacks analyst, UBS Group AG's solid capital position, acquisition of Credit Suisse and other partnerships will support its financials. Digitalization of services will enhance market share.
Motorola (MSI) Rides on Solid Demand Trends, Holistic Growth
Per the Zacks analyst, Motorola is likely to benefit from healthy demand trends in video security, command center software and land mobile radio services driven by its holistic growth initiatives.
Wix.com (WIX) Benefits From Diversified Product Portfolio
Per the Zacks analyst, Wix's performance is gaining from robust uptake of Wix Studio and other new artificial intelligence applications. Increasing B2B partnerships is a tailwind.
New Downgrades
Danaher (DHR) Hurt by Lower COVID-Related Products Sale
The Zacks analyst is concerned about weakness in the Biotechnology and Diagnostics segments due to lower demand for COVID-19 testing, vaccines and therapeutics.
Cost Headwinds to Weigh on Advance Auto's (AAP) Margins
High SG&A expenses and supply chain costs are expected to hurt Advance Auto's near-term margins amid expansion efforts, labor inflation and development of digital initiatives, per the Zacks analyst.
Low COVID Test Volume, High Cost Hurt Walgreens (WBA) Profit
The Zacks analyst is worried about Walgreen Boots witnessing huge decline COVID-19 testing and vaccine volume. Mounting costs and expenses are putting pressure on profitability.
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Comcast Corporation (CMCSA) : Free Stock Analysis Report
UBS Group AG (UBS) : Free Stock Analysis Report
Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report
Motorola Solutions, Inc. (MSI) : Free Stock Analysis Report
Linde PLC (LIN) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
