Wednesday, November 27, 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 Abbott Laboratories (ABT), BlackRock, Inc. (BLK) and ConocoPhillips (COP), as well as two micro-cap stocks, NetSol Technologies, Inc. (NTWK) and Optex Systems Holdings, Inc (OPXS). These research reports have been hand-picked from roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Abbott shares have outperformed the Zacks Medical sector (+7.2% vs. +0.5%) this year, but have lagged the S&P 500 index over the same time period (+7.2% vs. +26.5%). 

The Zacks analyst believes that Alinity, the company’s next-generation suite of systems, is a key driver in the core lab diagnostics business. EPD's impressive performance stems from the company’s unique business model. Freestyle Libre CGM device is also on a great trajectory. Within Nutrition, despite softness in global pediatric arm, Abbott is regaining market share banking on strong Adult Nutrition business.

However, the significant runoff of COVID-19 testing-related sales is hurting Abbott’s Diagnostics growth. Tough macro conditions also remain a headwind.

(You can read the full research report on Abbott here >>>)

BlackRock shares have underperformed the Zacks Financial - Investment Management industry over the past year (+39.3% vs. +59.7%). The Zacks analyst believes that high operating expenses have been hurting BlackRock’s profitability. Its reliance on overseas revenues exposes it to geopolitical tensions, different regulatory/economic environments and exchange rate fluctuation.

Yet, efforts to restructure active equity business and strengthen private markets capabilities are expected to support top-line growth. The planned acquisition of Preqin, along with the buyouts of Global Infrastructure Partners and a stake in SpiderRock should also aid.

(You can read the full research report on BlackRock here >>>)

Shares of ConocoPhillips have underperformed the Zacks Oil and Gas – Integrated – United States industry over the past year (-7.1% vs. -5.7%). Per the Zacks analyst, the company’s significant dependence on crude oil makes it vulnerable to market fluctuations. Additionally, inflationary pressures contributed to a significant increase in production and operating expenses in the last quarter, thereby squeezing margins.

However, the impending acquisition of Marathon Oil Corporation should expand its regional footprint. ConocoPhillips is also strategically increasing its presence in the liquefied natural gas market to meet growing energy transition demands.

(You can read the full research report on ConocoPhillips here >>>)

Shares of NetSol have outperformed the Zacks Computer – Software industry over the past year (+22.6% vs. +16.6%). Per the Zacks analyst, rebranding of the company’s product platform under the Transcend umbrella, and incorporation of advanced AI and machine learning capabilities have benefited the company. Also, NetSol has been aided by the renewal of a five-year support contract in China and a new agreement with a U.K.-based finance company.

Yet, costs of the development of products and services and global macroeconomic headwinds remain a concern.

(You can read the full research report on NetSol here >>>)

Optex’s shares have underperformed the Zacks Aerospace – Defense Equipment industry over the past year (-84.6% vs. +63.4%). The Zacks analyst believes that risks include margin compression due to inflationary pressures, contract concentration and competition from larger defense contractors have ailed the company.

However, strategic contract wins bolster its positioning in the defense sector, where it aligns well with the growing demand for optical sighting systems and assemblies.

(You can read the full research report on Optex here >>>)

Other noteworthy reports we are featuring today include Philip Morris International Inc. (PM), TotalEnergies SE (TTE) and Illinois Tool Works Inc. (ITW).

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

Robust Diagnostics Business, EPD Gains Aid Abbott (ABT)

Buyouts, AUM, Enhanced Capabilities Support BlackRock (BLK)

ConocoPhillips' (COP) Low-Cost & Diverse Upstream Assets Aid

Featured Reports

TEVA's New Drugs & Generic Stability Are Reviving Growth
The Zacks analyst believes newer drugs, Austedo and Ajovy as well as a stable generics business are reviving its top-line growth.

Expanding LNG & Clean Energy Assets Aid TotalEnergies (TTE)
Per the Zacks analyst TotalEnergies' presence in entire LNG value chain and expansion of clean energy generation through joint venture and acquisition will boost its performance.

Corpay (CPAY) Grows Organically, High Interest Expense Ail
Per the Zacks analyst, Corpay's organic growth is fueled by rise in volume and revenues per transaction in its payment programs. Rising interest expense affects bottom-line.

Cards, Rates Support Capital One (COF), Asset Quality Weak
Per the Zacks analyst, strength in credit card business, relatively high interest rates, decent loan demand and strategic buyouts will aid Capital One amid poor asset quality and rising expenses.

Philip Morris (PM) Benefits from Strong Smoke-free Revenues
Per the Zacks analyst, Philip Morris' smoke-free transition keeps it well-positioned for growth. Smoke-free products generated about 38% of the company's net revenues in the third quarter of 2024.

Investment & Expanding Operation Aid American Water (AWK)
Per the Zacks analyst American Water's planned long-term investment to strengthen infrastructure and expanding operation through acquisition and organic means are going to drive its performance.

Automotive OEM Unit Aids Illinois Tool (ITW) Amid Forex Woes
Per the Zacks analyst, Illinois Tool is benefiting from its Automotive OEM unit, driven by strength in the electric vehicle and Chinese OEM markets. However, forex woes are an added concern.

New Upgrades

Solid Demand & Investments Aid Packaging Corporation (PKG)
Per the Zacks analyst, Packaging Corp will gain on strong packaging demand driven by e-commerce and the need for food, beverages and medicines and its ongoing investments to boost production.

Synchrony's (SYF) Strategic Buyouts and Collaborations Aid
Per the Zacks analyst, Synchrony's acquisitions will strengthen its digital capabilities & diversify the business. Also, its CareCredit platform demonstrates strong growth potential.

Digital Transformation, Product Strength Aids Nutanix (NTNX)
Per the Zacks analyst, Nutanix is benefiting from higher investments by clients in digital transformation, as well as frequent product refreshes which help it gain new customers.

New Downgrades

Soft Traffic at NIKE Digital & China Hurt NIKE's (NKE) Sales
Per the Zacks analyst, pronounced traffic softness at NIKE Digital and its partner stores in Greater China, led to lower-than-planned retail sales for NIKE, including wholesale partners.

Sluggish Construction Market Hurts Sensata's (ST) Prospects
Per the Zacks analyst, a soft housing construction market affects the Sensing Solutions unit's sales. Loss of market share to local OEMs in the Chinese market is a woe.

Pricing & Sales Mix, Higher Fixed Costs Hurt Watsco (WSO)
Per the Zacks analyst, negative impact of pricing and sales mix for HVAC equipment as well as increase in fixed cost hurt Watsco's margin.

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Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report

Abbott Laboratories (ABT) : Free Stock Analysis Report

ConocoPhillips (COP) : Free Stock Analysis Report

BlackRock, Inc. (BLK) : Free Stock Analysis Report

Philip Morris International Inc. (PM) : Free Stock Analysis Report

TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report

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