Top Research Reports for Thermo Fisher Scientific, Micron Technology & KLA
Friday, August 2, 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 Thermo Fisher Scientific Inc. (TMO), Micron Technology, Inc. (MU) and KLA Corp. (KLAC), as well as micro-cap stock Moving iMage Technologies, Inc. (MITQ). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
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 >>>
Thermo Fisher Scientific’s shares have outperformed the Zacks Medical - Instruments industry over the past year (+11.6% vs. +3.7%). The company is braving the ongoing tough economic conditions by utilizing the (Practical Process Improvement) PPI Business System, resulting in strong financial performance.
Thermo Fisher Scientific’s growth strategy is further bolstered by several new product launches, including Stellar Mass Spectrometer and three new build-for-purpose editions of Orbitrap Ascend Tribrid Mass Spectrometer in the second quarter. The consistent efforts to expand bioproduction purification resin capacity, which is used in the mRNA manufacturing process, look encouraging.
The company’s continuous efforts to prioritize its partnership with customers to drive innovation and improve patient care bode well. A strong solvency position is an added advantage. The raised 2024 EPS outlook also instills optimism. However, the year-over-year decline in revenues in Life Science Solution
(You can read the full research report on Thermo Fisher Scientific here >>>)
Shares of Micron Technology have gained +14.1% over the year-to-date period against the Zacks Semiconductor Memory industry’s gain of +19.0%. The company is benefiting from improved market conditions, robust sales executions and strong growth across multiple business units. The positive impact of inventory improvement in the data center, as well as stabilization in other markets, such as automotive, industrial and others, is contributing to top-line growth.
It anticipates the pricing of DRAM and NAND chips to increase next year, thereby improving its revenues. The pricing benefits should primarily be driven by rising AI servers, causing a scarcity in the availability of cutting-edge DRAM and NAND supply.
Also, 5G adoption in the Internet of Things devices and wireless infrastructure is likely to spur demand for memory and storage. However, the United States and China’s tit-for-tat trade war is a major threat to the company.
(You can read the full research report on Micron Technology here >>>)
KLA’s shares have outperformed the Zacks Electronics - Miscellaneous Products industry over the year-to-date period (+23.8% vs. +4.1%). The company is benefiting from the strong performance of the wafer inspection business owing to rising demand for advanced wafer inspection applications in leading-edge technology development.
KLA is benefiting from the higher volume of wafer manufacturing, more complex designs, larger die and chip size driven by strong AI adoption. Increasing advanced packaging demands which support an increase in process control intensity bodes well for KLA.
Growing investments across multiple nodes and rising capital intensity in Foundry & Logic are driving the top-line growth. KLA's emphasis on the integration of AI into its solutions has driven its outperformance in the semiconductor market.
However, weakness in the PCB, Display and Component Inspection remains a headwind. Softness in memory and leading-edge, logic and foundry investments has been a concern.
(You can read the full research report on KLA here >>>)
Shares of Moving iMage Technologies have underperformed the Zacks Technology Services industry over the past year (-37.4% vs. +29.0%). This microcap company with market capitalization of $6.75 million is winning significant contracts with Alamo Drafthouse Cinema and expansion into high-margin SaaS and subscription-based products like MiTranslator and CineQC promise higher margins and recurring revenues.
Diversifying into live entertainment and esports markets mitigates cinema industry cyclicality. Operating in a growing market, MiT is well-positioned to capitalize on technological advancements and increased demand for high-quality cinema experiences.
Financial stability, as evidenced by $5.9 million in cash, supports growth. However, supply chain disruptions, competition from OTT platforms and regulatory compliance costs pose risks.
(You can read the full research report on Moving iMage Technologies here >>>)
Other noteworthy reports we are featuring today include Meta Platforms, Inc. (META), Starbucks Corporation (SBUX) and Trane Technologies plc (TT).
Mark Vickery
Senior Editor
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
End-Market Strength, Olink Buyout Aid Thermo Fisher (TMO)
Supply Stabilization, Higher AI Spending Aid Micron (MU)
KLA (KLAC) Rides on Strong Wafer Inspection Business
Featured Reports
User Growth, Instagram Strength Aids Meta Platforms (META)
Per the Zacks analyst, Meta Platforms is benefiting from a strengthening user base. Improving engagement level for Instagram, Messenger and WhatsApp bode well.
Starbucks (SBUX) Banks on Menu Innovation, Soft Comps Hurt
Per the Zacks analyst, Starbucks' focus on menu innovation, digital enhancements and new-store builds bode well. However, soft comps owing to macroeconomic challenges and price wars are a concern.
Trane (TT) Benefits From Transformation Amid Competition
Trane Technologies remains focused on improving its business operating system through transformation initiatives. Product and service diversity puts the company in the face of competitors.
Aerospace Market Benefits Howmet (HWM) Amid Rising Costs
Per the Zacks analyst, Howmet is benefiting from strength in commercial and defense aerospace markets, driven by robust demand for its products. However, increasing operating costs remain a concern.
Carlyle (CG) Rides on Rising AUM Balance Amid Cost Woes
Per the Zacks Analyst, rising assets under management and efforts to scale investment platforms are set to drive Carlyle's organic growth amid high compensation-related expenses.
Strategic Agreements Aid BorgWarner (BWA), Rising Costs Ail
Per the Zacks analyst, strategic agreements position BorgWarner as a key player in electrification, promising significant revenues. However, high SG&A costs remain a concern.
Blackbaud (BLKB) Gains from Robust Momentum in Social Sector
Per the Zacks analyst, Blackbaud's performance is positively impacted by strength in social space. The underperformance of the corporate sector remains a concern, notably woes at EVERFI.
New Upgrades
Hess (HES) Stands to Gain From All-Stock Merger With Chevron
Per the Zacks analyst, Hess shareholders stand to gain a premium and benefit from Chevron's integrated model and global presence, owing to Hess' potential merger with energy giant Chevron.
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.
Backlog, Positive Budget to Bolster Huntington Ingalls (HII)
Per the Zacks analyst, solid backlog count for Huntington Ingalls boosts its revenue growth prospects. Also, favorable U.S. budget for shipbuilding is expected to bolster the stock.
New Downgrades
Heavy Dependence on Large Customers to Hurt Liberty (LBRT)
The Zacks analyst believes that with top four customers contributing some 40% to Liberty Energy's revenues, it is susceptible to financial strain from the potential loss of one of these key clients.
Soft Demand & Adverse Price/mix Hurt Whirlpool's (WHR) Sales
Per the Zacks analyst, Whirlpool continues to witness sluggish discretionary demand trends and adverse price/mix, mainly in North America, hurting its top line.
Softness in luxury fashion demand hurts Capri Holdings (CPRI) Margin
Per the Zacks analyst, Capri Holdings' Michael Kors, Jimmy Choo and Versace experienced margin contraction across all three brands driven by full-price sell-through and burden of increased expenses.
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Starbucks Corporation (SBUX) : Free Stock Analysis Report
Micron Technology, Inc. (MU) : Free Stock Analysis Report
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
KLA Corporation (KLAC) : Free Stock Analysis Report
Trane Technologies plc (TT) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
Moving iMage Technologies, Inc. (MITQ): Free Stock Analysis Report