Tuesday, May 30, 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 Tesla, Inc. (TSLA), TotalEnergies SE (TTE) and Intuitive Surgical, Inc. (ISRG). 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 >>>
Tesla’s shares have outperformed the Zacks Automotive - Domestic industry over the year-to-date period (+56.9% vs. +33.8%). The electric vehicle (EV) giant witnessed record deliveries for Models 3 and Y. The Zacks analyst expects deliveries to see an annualized growth of around 37% in 2023.
Production ramp-up at gigafactory 4 (in Berlin) and 5 (in Austin) and introduction of new models, including Semi and Cybertruck, are set to support long-term deliveries growth. We anticipate automotive revenues to rise 19% this year.
Additionally, Tesla’s energy generation and storage revenues outlook is promising. Falling debt levels is another positive. While inflation and economic concerns could pose near-term challenges, we expect Tesla to deliver outsized returns in the long run on the back of output ramp-up and introduction of new models.
(You can read the full research report on Tesla here >>>)
Shares of TotalEnergies have outperformed the Zacks Oil and Gas - Refining and Marketing industry over the past year (+6.8% vs. -6.8%). The company continues to benefit from startups, well-spread LNG assets and an expanding upstream portfolio that has exposure to fast-growing hydrocarbon-producing regions. Lower exposure to mature assets compared with the other oil and gas majors acts as a tailwind.
TTE streamlines its portfolio through acquisitions, partnerships and divestitures. TTE is making steady investments to expand the renewable operation and aims to achieve net-zero emissions by 2050. Yet, TTE’s production is impacted by the security-related production cuts in some regions.
TTE remains exposed to acquisition-related risks as these assets contribute a sizable volume to production. A natural decline in production and TTE’s withdrawal from Russia might affect profitability.
(You can read the full research report on TotalEnergies here >>>)
Shares of Intuitive Surgical have outperformed the Zacks Medical - Instruments industry over the past year (+34.8% vs. -2.0%). The da Vinci procedure volume continued its recovering trend of 2022 into the first quarter of 2023, which is likely to persist for the rest of the year. Improving procedure volume along with better system placements and services across all markets will drive top-line growth in 2023.
Intuitive Surgical witnessed healthy customer demand for its products in the quarter under review. Its Ion platform has strong growth potential. A stable liquidity position is an added plus.
However, higher component and labor costs, and a strong U.S. dollar continues to hurt gross margin. Stiff competition in the global MedTech space and rising costs remain concerns for Intuitive Surgical.
(You can read the full research report on Intuitive Surgical here >>>)
Other noteworthy reports we are featuring today include Elevance Health, Inc. (ELV), The Charles Schwab Corp. (SCHW) and Monster Beverage Corp. (MNST).
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
Tesla (TSLA) Rides High on Robust Model 3/Y Deliveries
Expanding LNG & Clean Energy Assets Aid TotalEnergies (TTE)
Intuitive Surgical's (ISRG) da Vinci System Helps Offset Risks
Elevance's (ELV) Strategic Buyouts & Product Expansion Aid
Per the Zacks analyst, acquisitions, collaborations and product expansions are helping Elevance Health boost its portfolio, leading to steady revenue growth. Yet, rising costs are denting profits.
Strategic Acquisitions, Higher Rates to Aid Schwab (SCHW)
Per the Zacks analyst, Schwab's inorganic growth efforts will likely keep supporting the top line and market share. Given the high interest rate environment, its margins will be positively impacted.
Solid Carrier & Networking Chip Demand Aid Marvell (MRVL)
Per the Zacks Analyst, Marvell is growing on solid demand for its carrier infrastructure and networking chips from accelerated 5G deployment and increased adoption of cloud-based solutions.
Planned Investments, Permian Basin Focus Aid Occidental (OXY)
Per the Zacks analyst Occidental's investments to strengthen infrastructure and expansion of Permian Basin operation through acquisition of Anadarko will drive its performance over the long run.
Phillips 66 (PSX) to Gain From Higher Distillate Fuel Demand
Phillips 66 is well-poised to benefit from higher distillate fuel demand amid changes in the marine fuel sulfur limits. Yet, its rising costs of producing refined products concerns the Zacks analyst.
Rising Demand Across Several Verticals Aid ANSYS (ANSS)
Per the Zacks analyst, ANSYS' performance benefitted from higher customer demand across aerospace and defense, high-tech and automotive sectors. However, stiff competition is a major headwind.
Aptiv (APTV) Gains From Wind River Buyout, Liquidity Woes Prevail
Per the Zacks analyst, the Wind River acquisition has enhanced Aptiv's position in the automative software solutions market. Decreasing liquidity remains a concern.
Solid Energy Drinks Unit Aids Monster Beverage's (MNST) Sales
Per the Zacks analyst, Monster Beverage continues to gain from strong demand for the energy drinks category as well as new product launches and innovation. This led to sales growth of 11.9% in Q1.
Robust Demand & Expansion Efforts Aid Marriott's (MAR) Prospects
Per the Zacks analyst, Marriott (MAR) benefits from solid demand across all the customer segment. Also, accretive acquisitions & expansion plans adds to the growth.
Haemonetics (HAE) Thrives on Hemostasis Management Growth
The Zacks analyst is impressed with Haemonetics' growth in Hemostasis Management in fiscal fourth quarter driven by strong adoption and utilization of TEG disposables.
Lack of Promising Pipeline Hurts Catalyst (CPRX)
Per the Zacks Analyst, Catalyst's limited pipeline is a major concern, increasing dependency on Firdapse for revenue. Any developmental setback for Firdapse will hurt the stock.
Weakening Memory Chip Demand to Hurt Micron's (MU) Sales
Per the Zacks Analyst, weakening consumer spending on personal computers and smartphones is expected to negatively impact demand for Micron's memory chips in the near term.
Volatile Markets and Rising Costs Ail Northern Trust (NTRS)
Per the Zacks analyst, volatile markets and rising costs are likely to limit Northern Trusts' bottom-line growth in the near term. Also, deteriorating credit quality is concerning.
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