Top Research Reports for Alibaba, NextEra Energy & Texas Instruments

Friday, October 14, 2022

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Alibaba Group Holding Limited (BABA), NextEra Energy, Inc. (NEE) and Texas Instruments Incorporated (TXN). 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 >>>

Alibaba shares have underperformed the Zacks Internet - Commerce industry over the past year (-55.4% vs. -43.0%). The company is facing the rising COVID-19 cases in China which continues to remain a serious headwind. We note that the pandemic-led disruptions are likely to persist as concerns for Alibaba’s domestic businesses.

However, solid momentum across China and International wholesale businesses is benefiting its China and International commerce businesses, respectively. We expect China commerce and international commerce to be up 6.5% and 8.6% in fiscal 2023 year over year, respectively.

Further, strength across the local consumer services, cloud computing business and Cainiao logistics services is contributing well to the top-line growth. Also, well-performing direct sales businesses like Alibaba Health and Freshippo remain tailwinds. Considering these factors, our estimates suggest that the top-line is likely to witness a 2.7% rise in fiscal 2023 from fiscal 2022.

(You can read the full research report on Alibaba here >>>)

NextEra Energy shares have held up very well relative to the turmoil in the broader market, but they modestly underperformed the Zacks Utility - Electric Power industry over the past year (-10.5% vs. -7.6%). The nature of its business is subject to complex federal, state and other regulations. Unfavorable weather conditions and an increase in supply costs adversely impact earnings as well.

Nevertheless, through the proper execution of organic projects and strategic acquisitions, is expanding its operations. NextEra Energy currently has a lot of renewable projects in its backlog and renewable project backlog is rising every quarter, which is aiding the company in cutting emissions.

The merger of Gulf Power and FPL strengthens NextEra Energy’s position in Florida. Improving Florida economy and FPL’s reliable services are expanding its customer volume every quarter. NextEra Energy has ample liquidity to meet its near-term debt obligations.

(You can read the full research report on NextEra Energy here >>>)

Texas Instruments’ shares have declined -16.5% over the past year against the Zacks Semiconductor - General industry’s decline of -20.9%. The company is facing weakness in the personal electronics market remains a headwind. Further, intensifying market competition and coronavirus related uncertainties are concerns.

However, Texas Instruments is benefiting from solid rebound in the automotive market. Further, solid demand environment in the industrial, communication equipment and enterprise systems markets is a major positive. Additionally, solid momentum across Analog segment owing to robust signal chain and power product lines, is contributing well to the top line.

Also, robust Embedded Processing segment is contributing well. Notably, solid investments in new growth avenues and competitive advantages remain tailwinds. The company’s portfolio of long-lived products and efficient manufacturing strategies are other positives.

(You can read the full research report on Texas Instrument here >>>)

Other noteworthy reports we are featuring today include Honeywell International Inc. (HON), Dominion Energy, Inc. (D), and Archer-Daniels-Midland Company (ADM).

Sheraz Mian
 
Director of Research

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

Wholesale & Cloud Businesses Momentum Aids Alibaba (BABA)

Steady Investment & Renewable Focus Aid NextEra Energy (NEE)

Automotive & Industrial Growth Aids Texas Instruments (TXN)

Featured Reports

Aerospace Unit Drives Honeywell (HON) Amid Supply Chain Woes
Per the Zacks analyst, strength in Honeywell's Aerospace Segment, driven by recovery in commercial flight hours will lend momentum to the company. However, supply chain woes are a concern.

Investment on Infrastructure & Clean Assets Aid Dominion (D)
Per the Zacks analyst, Dominion's investment of $37 billion through 2026 to enhance clean electricity generation and strengthen its infrastructure will boost its profitability.

Nutrition Segment to Drive Archer Daniel's (ADM) Growth
Per the Zacks analyst, Archer Daniels gains from strength in the Nutrition unit on growth in human and animal nutrition businesses. It expects operating profit growth of 20% in 2022 for this unit.

Strong Renewal Rate Change, Retention Aid Travelers (TRV)
Per the Zacks analyst, Travelers is set to gain from continued strong renewal rate change and retention and increase in new business. Yet, exposure to cat loss inducing underwriting volatility ails.

High-Quality Eagle Ford Acreage to Aid Magnolia (MGY)
The Zacks analyst believes that Magnolia Oil and Gas' high-quality acreage in the Eagle Ford provides it with attractive economics but is worried over lack of geographic diversification.

HealthEquity (HQY) Rides on a Unique Investment Platform
The Zacks analyst is upbeat about HealthEquity offering multiple cloud-based platforms despite its operation in a highly competitive Medical Services market.

United Airlines (UAL) Rides on Air Travel Demand, Costs Ail
The Zacks Analyst is impressed with the fact that increased air-travel demand is aiding United Airlines' top-line performance. However, rising fuel costs continues to weigh on the bottom line.

New Upgrades

Jazz's (JAZZ) Addition of Cannabidiol Drugs Fuels Revenues
While Jazz's (JAZZ) sleep disorder portfolio has exhibited strong demand, the Zacks Analyst is impressed with the company's newly added drugs which are expected to generate 65% of revenues in 2022.

Growing Demand For Flash Storage Aid Pure Storage (PSTG)
Per the Zacks analyst, Pure Storage is expected to benefit from robust demand for FlashArray and FlashBlade business segment. Synergies from recent acquisitions also bode well.

Iridium's (IRDM) Performance Gains from Increasing Subscribers
Per the Zacks analyst, Iridium's performance is gaining from increasing subscribers. Ongoing activations and solid uptake of the company's broadband services are further tailwinds.

New Downgrades

Soft Comps Performance to Hurt Five Below's (FIVE) Sales
Per the Zacks analyst, soft comparable sales performance may hurt Five Below's top line. The metric slid 5.8% in the second quarter. Management expects 7-9% decline in third-quarter comparable sales.

Elevated Expenses, Tough Backdrop to Hurt State Street (STT)
Per the Zacks analyst, persistently rising costs due to continuous investments in franchise will likely hurt State Street's bottom line. A challenging operating backdrop is another major headwind.

Supply-Chain Woes Play Spoilsport for Leggett's (LEG) Volume
Per the Zacks analyst, the supply chain disruptions are constraining volume growth for Leggett. It has been witnessing weak demand in the U.S. bedding market.

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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
 
Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
 
Honeywell International Inc. (HON) : Free Stock Analysis Report
 
Archer Daniels Midland Company (ADM) : Free Stock Analysis Report
 
Dominion Energy Inc. (D) : Free Stock Analysis Report
 
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
 
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