Tuesday, December 12, 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 The Home Depot, Inc. (HD), Advanced Micro Devices, Inc. (AMD) and Pfizer Inc. (PFE). 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 >>>
Home Depot shares have done modestly better than rival Lowe’s this year (+5.7% vs. +4.1%), but both have lagged the S&P 500 index’s +21% gain in the year-to-date period.
The Zacks analyst believes that the “One Home Depot” investment plan, which focuses on expanding supply chain facilities and technological enhancement to the digital experience have been a major aid. Also, the closely connected retail strategy and underlying technology infrastructure have boosted web traffic.
Yet, a decrease in lumber prices and pressures in several big-ticket discretionary categories have pressured the company’s top and bottom line.
(You can read the full research report on Home Depot here >>>)
Advanced Micro Devices shares have outperformed the Zacks Electronics – Semiconductors industry over the past year (+87.6% vs. +47.0%). The Zacks analyst believes that strong adoption of Ryzen and fourth-gen EPYC CPU have been driving the company’s data center and client revenues.
However, weak Gaming and embedded revenues have weigh down on the company. Gaming declined due to lower semi-custom revenues, while the embedded segment suffered from lower performance in the communications market.
(You can read the full research report on Advanced Micro Devices here >>>)
Shares of Pfizer have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-46.1% vs. +3.7%). Per the Zacks analyst, there are concerns about the company’s growth drivers beyond its COVID related products because of stiff competition. Also, Comirnaty vaccine and Paxlovid oral pill, two of its flagship COVID-19 products have witnessed low demand.
However, new launches like Abrysvo, Velsipity, Penbraya, Zavzpret and new acquisitions provide sufficient diversification in its product portfolio currently. Huge profits from its COVID products have strengthened its cash position, which is being used to make such acquisitions, increase dividends, buy back shares and reduce debt.
(You can read the full research report on Pfizer here >>>)
Other noteworthy reports we are featuring today include The Cigna Group (CI), MPLX LP (MPLX) and Live Nation Entertainment, Inc. (LYV).
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
Home Depot’s (HD) Interconnected Strategy to Boost Sales
AMD Rides on Strong Adoption of EPYC & Ryzen Processors
Pfizer’s (PFE) New Products Can Drive Long Term Sales Growth
QIAGEN (QGEN) Rides on Growth Pillars, Macro Woes Stay
The Zacks analyst is impressed with QIAGEN gaining from its key pillars of growth, including the Sample technologies, QuantiFERON and the QIAcuity digital PCR system. Yet, macro woes are a worry.
MPLX Poised to Gain From Growing Midstream Asset Demand
Per the Zacks analyst, MPLX is well-poised to capitalize on the growing demand for midstream assets to support increasing volumes of crude oil, gas and NGLs in the prolific U.S. shale plays.
Fire & Safety Segment to Drive IDEX (IEX), High Costs Ail
Per the Zacks analyst, IDEX will benefit from strength in Fire & Safety/Diversified Products segment, led by strong momentum in the fire and rescue businesses. However, high costs remain concerning.
Qorvo (QRVO) Poised to Benefit from Solid Growth Dynamics
Per the Zacks analyst, Qorvo is likely to benefit from healthy demand trends driven by the accelerated 5G deployment, increasing adoption of ultra-wideband and the transition to Wi-Fi 6E and Wi-Fi 7.
Cigna (CI) Benefits from Growing Membership, High Costs Hurt
Per the Zacks analyst, Cigna gains from improving membership and solid performances of Evernorth Health Services and Cigna Healthcare businesses. However, rising costs are a concern.
Recurring Revenues Benefit Navient (NAVI), Low Liquidity Ails
Per the Zacks analyst, Navient’s position as a leading student-loan provider and recurring revenue business model aid its top-line growth. Yet, limited growth opportunities and low liquidity are woes.
Light & Wonder (LNW) Rides on Holistic Growth Strategy
Per the Zacks analyst, Light & Wonder is likely to gain from the holistic growth strategy to expand in high-return markets and strategic adjacencies that generate strong long-term cash-based returns.
Solid International Footprint Aid JAKKS Pacific (JAKK)
Per the Zacks analyst, JAKKS Pacific’s solid international footprint, strategic acquisitions, focus on innovation and collaborations with popular brands and movie franchisees bode well.
Robust Ticket Sales Boosts Live Nation’s (LYV) Prospects
Per the Zacks analyst, Live Nation is likely to benefit from pent-up demand for live events, solid ticket sales and sponsorship business. Also, focus on strengthening of client base bodes well.
Gap’s (GPS) Power Plan 2023 & Cost-Control Efforts Bode Well
Per Zacks analyst, Gap’s Power Plan 2023 strategy is encouraging, which focuses on opening Old Navy and Athleta stores while closing Gap and Banana Republic stores. Its cost savings also bode well.
Air Transport Services (ATSG) Sees Soft Airfreight Demand
The Zacks analyst is worried about the weakness in demand for cargo aircraft. High operating expenses represent another headwind.
Weak Demand Hurts Microchip’s (MCHP) Top-Line Prospects
Per the Zacks analyst, Microchip is suffering weakening demand and challenging macroeconomic environment. Persistent inflation and high-interest rates hurt prospects.
Foreign Currency Risks & Poor Demand Ail SolarEdge (SEDG)
Per the Zacks analyst SolarEdge’s performance will be adversely impacted by weak demand in the United States and Europe. Foreign currency exchange risks exposure can impact company’s profitability.
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