Friday, November 11, 2022
Zacks Research Daily features the best research from our team of analysts. Today’s Research Daily features new research reports on 16 major stocks, including Amazon.com, Inc. (AMZN), Sanofi (SNY) and Target Corporation (TGT). These research reports are handpicked from nearly 70 reports published today by our team of analysts.
You can do it Click here for today’s report >>>
shares of Amazon.co.jp Zacks Internet – Down -45.2% over the past year compared to a -48.6% drop in the Commerce industry and a -17.1% drop in the S&P 500 Index.
Crushing Amazon’s near-term outlook is the view that the company’s strong growth during Covid is the result of earnings drawn from future periods that need to be accounted for over the next few quarters. It is also believed to have overhired during the pandemic, resulting in a significantly increased cost base.
These short-term headwinds aside, Prime is gaining momentum with its ultra-fast delivery service and strong content portfolio. Strengthening relationships with third-party sellers is another plus.
It’s also helped by the momentum we’re seeing across Amazon Music. In addition, the high adoption rate of AWS supports the company’s cloud dominance. The expansion of AWS’ service portfolio continues to help Amazon gain more momentum among its customers.
Plus, a strong Alexa skill and an expanding smart home product portfolio is a plus. In addition, the company’s strong global presence and solid momentum in SMEs continue to be a tailwind. Considering the above facts, Zacks’ analysts expect 2022 earnings to grow 11% from 2021.
(You can do it Read the full Amazon.com research report here >>>)
Sanofi’s The stock has underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-12.7% vs +10.7%). The company faces headwinds, including poor performance of diabetes drugs and generic competition for many drugs. However, Sanofi’s Specialty Care division remains strong, especially with his Dupixent’s regular label expansion.
Dupixent has become Sanofi’s main top-line driver. Revenue outside the United States is accelerating and is expected to increase due to multiple approvals for new indications expected in the near future. Sanofi has a major vaccine portfolio, which is a key top-line driver. Its R&D pipeline is strong.
Some data is expected to be read in 2022. Sanofi has also launched several new drugs over the past few years and has expanded its pipeline through M&A deals.
(You can do it Read the full Sanofi research report here >>>)
of the target Shares have fallen -24.7% this year, compared with a -1.5% decline for Walmart and a -18.2% decline for the S&P 500 Index. The market was unwilling to give Target credit for the inventory buildup issues revealed in May’s April quarterly report. If that turns out to be a relatively favorable setup for equities.
Target has deployed resources to enhance its omnichannel capabilities, come up with new brands, renovate stores and expand its same-day delivery options to provide customers with a seamless shopping experience.
Target has made multiple changes to its business model to adapt to the dynamic retail environment and remain relevant. These are contributing to the top line. With demand skewing toward consumer essentials and away from discretionary categories, we believe Target’s attempt to right-size its inventory is a step in the right direction.
However, this puts the company in a better position to capture market share, although it has depressed margins as seen in the second quarter of fiscal 2022. Analysts at Zacks expect third- and fourth-quarter sales to grow 3% and he 4.2% respectively. In the second half of the year, we expect the operating margin to improve gradually.
(You can do it Read the full Target research report here >>>)
Other notable reports featured today include Humana Inc. (HUM), General Dynamics Corporation (GD), and PNC Financial Services Group, Inc. (PNC).
Director of Research
Note: Sheraz Mian is the head of Zacks Equity Research and a recognized total return expert. He is frequently cited in print and electronic media and publishes a weekly magazine. Performance trends When Earnings preview report. If you would like to receive an email notification whenever Sheraz publishes a new article, click here >>>
today’s must read
Amazon (AMZN) Embarks on Prime’s Strengths and Growing AWS Adoption
Increase sales with Target (TGT) omni-channel and store expansion
Sanofi (SNY) relies on Dupixent and vaccines to drive growth
Order flow assists general dynamics (GD) in supply challenges
Strong order flow for the company’s products is boosting General Dynamics’ earnings growth prospects, according to Zacks analysts.But supply chain challenges caused by the Russia-Ukraine conflict could undermine that growth
Inorganic Growth Supports PNC Financials (PNC), Higher Costs
PNC Financial’s Inorganic will diversify its earnings mix, with strong loans and deposits driving growth, according to analysts at Zacks. However, rising costs and exposure to riskier loan portfolios are concerns.
America Movil (AMX) benefits from growing subscriber base
Analysts at Zacks say America Movil’s earnings are growing as its broadband customer base grows. However, stiff competition and the company’s high leverage remain concerns.
Expansion efforts help ORLY, debt ruins sport
O’Reilly’s earnings are expected to rise from store openings and distribution centers, but analysts at Zacks are concerned about high long-term debt to its 94% capital.
HVAC & Controls Helps Johnson Controls (JCI) Amid Cost Matters
Sachs analysts are encouraged by growth in the Building Solutions North America segment driven by growth in HVAC & Controls. However, commodity cost inflation is a concern for the company.
Helping Kimberly-Clark (KMB) Cut Costs Amid Rising Inflation
Kimberly-Clark is taking strong steps to cut costs amid inflationary pressures, according to Zacks analysts. The company said in the third quarter it saved him $80 million from its FORCE program.
Werner (WERN) Embarks on Segment Growth Amid Rising Expenses
Strengths in both trucking services and logistics segments are driving Werner’s top-line growth, according to Zacks analysts.Rising operating costs are likely to weigh on earnings
Humana (HUM) remains on balance sheet with solid Medicare business
Humana’s Medicare Advantage business remains a top-line driver, according to analysts at Zachs. In addition, its strong balance sheet enables business investments that drive long-term growth.
Marathon (MPC) to benefit from sale of Speedway retail unit
Sachs analysts like Marathon’s sale of its speedway business.
Supporting digital transformation and product strength Nutanix (NTNX)
According to Zacks analysts, Nutanix is benefiting from increased customer investment in digital transformation and frequent product updates, which help attract new customers.
Moderna’s (mRNA) reliance on COVID vaccine revenue is disastrous
Moderna increased its cash resources on the back of strong sales of its COVID vaccine.But Sachs analysts worry the low number of COVID-19 cases is fueling uncertainty in vaccine demand
Poor asset quality and high cost Ails Credit Acceptance (CACC)
Analysts at Zacks said higher expenses and a challenging operating environment could hurt Credit Acceptance’s earnings. Deteriorating credit quality and high levels of debt are other major short-term problems.
Higher mortgage rates and input costs hurt DR Horton (DHI)
Rising mortgage rates, high material costs and ongoing supply chain issues are impacting DR Horton’s orders and backlog, according to Zacks analysts.
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Amazon.com, Inc. (AMZN) : Free Inventory Analysis Report
Sanofi (SNY): Free Stock Analysis Report
General Dynamics Corporation (GD): Free Stock Analysis Report
The PNC Financial Services Group, Inc (PNC) : Free Inventory Analysis Report
Target Corporation (TGT): Free Stock Analysis Report
Humana Inc. (HUM) : Free Stock Analysis Report
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