Wednesday, March 23, 2022
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 Corp. (CMCSA), Danaher Corp. (DHR) and Amgen Inc. (AMGN). 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 declined -6.1% in the year-to-date period against the Zacks Cable Television industry’s decline of -7.3%. The Zacks analyst believes that Comcast persistently suffers from video-subscriber attrition due to cord cutting. Moreover, a leveraged balance sheet is a major concern.
However, Comcast is also benefiting from strength in broadband subscriber base and strong momentum in the wireless business. Its strategy to provide high-speed Internet at an affordable price plays a pivotal role in providing connectivity, improving customer wins and experience.
Media consumption and the work-from-home and online-learning waves bode well for Comcast’s Internet business due to the recent pandemic. The company’s streaming service Peacock gained significant traction within a short span and is a key catalyst in driving broadband sales.
(You can
read the full research report on Comcast here >>>
)
Shares of
Danaher
have outperformed the Zacks Diversified Operations industry over the past year (+33.9% vs. -3.4%). The Zacks analyst believes that the company is poised to gain from Danaher Business System (“DBS”), healthy rewards to shareholders, buyout benefits, and product innovation in the quarters ahead. In fourth-quarter 2021, its earnings and sales surpassed estimates by 7.6% and 4.38%, respectively.
The company anticipates year-over-year core revenue growth of 10% for the first quarter of 2022 and mid-single digits for 2022.The impact of COVID-related testing is predicted to boost sales in the low-single digits in the first quarter. However, cost inflation and woes related to supply-chain restrictions might be worrying in the quarters ahead. High debts might inflate financial obligations and forex woes might be concerning.
(You can
read the full research report on Danaher here >>>
)
Shares of
Amgen
have outperformed the Zacks Medical – Biomedical and Genetics industry over the year-to-date period (+5.1% vs. -12.3%). The Zacks analyst believes that Amgen is rapidly advancing its robust pipeline of early and late-stage assets. Several phase III readouts are due in 2022. Lumakras, a first-in-class lung cancer treatment, is off to an excellent start while its label expansion studies are progressing rapidly. Amgen also boasts a strong biosimilars portfolio, which is an important long-term growth driver.
While key drugs like Prolia, Repatha, Xgeva and biosimilars are driving sales, increasing competition for its legacy products is hurting the same. However, pricing and competitive pressure are impacting many of Amgen’s products and franchises. Several of Amgen’s marketed drugs are facing increased pricing headwinds and continued COVID-19 headwinds.
(You can
read the full research report on Amgen here >>>
)
Other noteworthy reports we are featuring today include Chevron Corporation (CVX), The Boeing Company (BA) and Canadian Pacific Railway Limited (CP).
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
Broadband Subscriber Gain Drives Comcast’s (CMCSA) Prospects
Life Sciences Business Drives Danaher (DHR), High Costs Ail
Amgen (AMGN) Rapidly Advancing Pipeline Development
Featured Reports
Military Business Aids Boeing (BA), Supply Chain Issue Woes
Per the Zacks analyst, Boeing boasts $2.6 trillion market opportunity for defense and space, which would bolster its growth. Yet, COVID induced supply chain shortages might hurt the stock’s results.
Moderna (MRNA) Rides High on Success of Coronavirus Vaccine
Per the Zacks analyst, Moderna’s COVID-19 vaccine and booster are approved for emergency use in multiple countries, driving revenues.
Dividends Boost Canadian Pacific (CP) Despite Labor Issues
The Zacks analyst welcomes the company’s efforts to pay out dividends to its shareholders even in such challenging times. However, the current labor troubles are very concerning.
Expanding Customer Base, Strong Execution Aid Splunk (SPLK)
Per the Zacks analyst, Splunk benefits from strong execution across its platform, observability and security businesses as organizations partner with it to secure their business infrastructure.
Organic Growth Supports Carlyle (CG), Increasing Costs Ail
Per the Zacks analyst, Carlyle’s increasing AUM balance and fund management fees support its organic growth. Yet, surging costs and rising competition for investment opportunities are concerning.
IDEXX (IDXX) Rides on Strong CAG Arm Growth Amid Forex Woes
The Zacks analyst is impressed with IDEXX’s sturdy gains in CAG revenues led by double-digit gains across the U.S. and international markets. Yet, foreign exchange woes remain a concern.
The Estee Lauder Companies (EL) Gains on Skin Care Category
Per the Zacks analyst, The Estee Lauder Companies is gaining from solid Skin Care sales for a while now. Sales in the category increased 12% year over year in the second quarter of fiscal 2022.
New Upgrades
Chevron (CVX) Boosts Permian Position with Noble Buy
The Zacks analyst believes that Chevron’s Noble Energy takeover has expanded its footprint in the lucrative Permian Basin along with the addition of cash-generating offshore assets in Israel.
Marriott (MAR) Likely to Gain From Robust Expansion Efforts
Per the Zacks analyst, Marriott continues to focus on expanding its portfolio of luxury and lifestyle brands to drive growth. This along with recovery of business transient and group demand bode well.
Buyouts & Digitization Efforts Aid Group 1’s (GPI) Prospects
The Zacks analyst believes that buyouts of Prime Automotive and Robinson Group will aid Group 1’s revenues. The firm’s e-commerce efforts are also boosting top-line growth.
New Downgrades
Weather Variation & Third Party Failure Ail Clearway (CWEN)
Per the Zacks analyst adverse weather cuts Clearway Energy’s (CWEN) generation from renewables and third-party transmission line failure can disrupt planned delivery, thereby lowering profitability.
Rising Expenses, Growing Competition Ail MercadoLibre (MELI)
Per the Zacks analyst, MercadoLibre is hurt by rising expenses related to warehousing, free shipping subsidies and mPOS discounts. Also, intensifying e-commerce competition poses risk.
Forex Volatility, High Costs Concern Reinsurance Group (RGA)
Per the Zacks analyst, increasing expenses due to higher claims, interest credited and operating costs continues to affect the top line. Forex fluctuation raises financial risk.
Investor Alert: Legal Marijuana Looking for big gains?
Now is the time to get in on a young industry primed to skyrocket from $13.5 billion in 2021 to an expected $70.6 billion by 2028.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could kick start an even greater bonanza for investors. Zacks Investment Research has recently closed pot stocks that have shot up as high as +147.0%.
You’re invited to immediately check out Zacks’
Marijuana Moneymakers: An Investor’s Guide
. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
Today, Download Marijuana Moneymakers FREE >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
