Yahoo Finance Top Stock Reports for Intel, Anheuser-Busch & HCA Healthcare
Monday, October 2, 2023
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 Intel Corporation (INTC), Anheuser-Busch InBev SA/NV (BUD) and HCA Healthcare, Inc. (HCA). 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 >>>
Intel shares have lagged the Zacks Zacks Semiconductor industry this year (+35.7% vs. +69.1%), but they have handily outperformed the broader (+35.7% vs. +12.9% for the S&P 500 index). The company is focusing on establishing an advanced semiconductor manufacturing ecosystem and has expanded its production capabilities in Germany and Poland under its IDM 2.0 (integrated device manufacturing) strategy.
A concerted focus on increasing market diversification and healthy momentum in data center business are tailwinds. Intel is also expanding its foundry services through partnership with Tower Semiconductor. The launch of its glass substrates for advanced packaging of chips is another positive.
However, contraction in the total addressable market across all CPU market segments is a major headwind. Weak demand trends and sluggish recovery in China are hurting sales in Network and Edge Group. Macroeconomic challenges, inventory adjustments and intense market volatility are straining margins.
(You can read the full research report on Intel here >>>)
Shares of Anheuser-Busch have outperformed the Zacks Beverages - Alcohol industry over the past year (+17.9% vs. -4.1%). The company has been benefiting from continued consumer demand for its brand portfolio. The company’s relentless execution, investment in brands and accelerated digital transformation aided top-line growth in second-quarter 2023.
The top line also benefited from strength of the beer category globally. The expansion of the Beyond Beer portfolio, and investments in B2B platforms, e-commerce and digital marketing bode well. For 2023, AB InBev expects EBITDA growth of 4-8%, in line with our estimate of 4%. It anticipates revenue growth to be higher than EBITDA growth, compared to our estimate 6% growth.
However, shares of AB InBev lagged the industry year to date. The stock came under pressure due to dismal earnings in the second quarter. AB InBev’s EBIT margin declined in the second-quarter, driven by higher cost of sales and SG&A expenses.
(You can read the full research report on Anheuser-Busch here >>>)
HCA Healthcare shares have outperformed the Zacks Medical - Hospital industry over the past year (+28.4% vs. +23.7%). The company’s revenues remain on an uptick on the back of a surge in admissions, outpatient surgeries and other procedures. Significant growth in its Managed Medicare operations is expected to drive its performance.
Multiple buyouts aided it in increasing patient volumes, enabled network expansion and added hospitals to its portfolio. It has been gaining from its telemedicine business line on the back of the rising digitization trend. HCA Healthcare resorts to prudent capital deployment via share buybacks and dividend payments.
However, the company's escalating operating expenses have been weighing on the margins. A high debt level induces rise in interest expenses. As such, the stock warrants a cautious stance.
(You can read the full research report on HCA Healthcare here >>>)
Other noteworthy reports we are featuring today include Exelon Corporation (EXC), Moderna, Inc. (MRNA) and DuPont de Nemours, Inc. (DD).
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
Intel (INTC) Focuses on Advanced Manufacturing Ecosystem
Beyond Beer Expansion to Drive AB InBev's (BUD) Top Line
Improving Top Line, Acquisitions Aid HCA Healthcare (HCA)
Featured Reports
Regulated Investment and Debt Management Aid Exelon (EXC)
Per the Zacks analyst, Exelon's planned $31.3B investment to strengthen transmission and distribution lines and efficient management of outstanding debt are going to boost its performance.
Moderna's (MRNA) New Launches to Reduce COVID Sales Dependency
With COVID vaccine sales declining, Moderna (MRNA) is accelerating development of its non-COVID pipeline. The Zacks Analyst is encouraged by the potential product launches over the next three years.
Productivity Actions, New Products Aid DuPont (DD)
While DuPont faces headwinds from sluggishness in certain markets, it should gain from productivity improvement actions and investment in new product development, per the Zacks analyst.n
Public Spending Aid Martin Marietta (MLM), High Costs Ail
Per the Zacks analyst, increased infrastructure investment, heavy non-residential construction, large-scale energy projects and domestic manufacturing aid Martin Marietta. However, high costs hurt.
Loan Origination Growth Aid Sallie Mae (SLM) Despite High Debt
Per the Zacks analyst, growth trends in the private student lending industry & buyouts will drive loan originations for Sallie Mae. Yet high debt seems unmanageable relative to a smaller cash position
New Upgrades
Lithia (LAD) Benefits From Its Buyout Binge
The Zacks analyst is optimistic about Lithia's strategic acquisitions, which are set to boost its portfolio and sales. The firm has acquired over $3.5 billion in annualized revenues so far this year.
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
Changing Marketplace Conditions Ail AMN Healthcare (AMN)
The Zacks analyst is worried about AMN Healthcare's operation in an evolving healthcare industry characterized by rising alternative modes of healthcare delivery.
Inflationary Pressures Hurt Cracker Barrel's (CBRL) Prospects
Per the Zacks analyst, Cracker Barrel's operations are likely to be affected by commodity and wage inflation and supply chain challenges. Also, decline in traffic from pre-pandemic levels is a concern
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Intel Corporation (INTC) : Free Stock Analysis Report
Exelon Corporation (EXC) : Free Stock Analysis Report
DuPont de Nemours, Inc. (DD) : Free Stock Analysis Report
Moderna, Inc. (MRNA) : Free Stock Analysis Report
Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report
HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report
