雅虎香港財經 Top Analyst Reports for Cisco Systems, NextEra Energy & Moody's
Monday, August 12, 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 Cisco Systems, Inc. (CSCO), NextEra Energy, Inc. (NEE) and Moody's Corporation (MCO). 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 >>>
Shares of Cisco Systems have underperformed the Zacks Tech sector (-10.1% vs. +14.1%) as well as the broader market (-10.1% vs. +11.8% for the S&P 500 index) in the year-to-date period. The company has been suffering from sluggish networking sales, primarily due to lackluster demand from telecommunication and cable services providers, as well as stiff competition.
Cisco’s prospects are further challenged in the AI-driven networking space due to stiffening competition aggravated by Hewlett Packard’s deal to acquire Juniper. Nevertheless, Cisco’s business model has evolved with subscription revenues accounting for more than half of its total revenues. Splunk acquisition enhances its recurring revenue base.
The buyout significantly expands Cisco’s portfolio of software-based solutions, contributing more than $4 billion in ARR and makes it one of the largest software companies in the world. The launch of AI-powered Hypershield, which combines security and networking, strengthened Cisco’s security portfolio.
(You can read the full research report on Cisco Systems here >>>)
NextEra Energy shares have outperformed the Zacks Utility - Electric Power industry over the past year (+12.9% vs. +8.9%). The company continues to expand its operations through organic projects and acquisitions. NextEra Energy will add more renewable projects to its portfolio and has nearly 22.6 GW of renewable projects in its backlog.
Efficient cost management is boosting the company's margins. Florida’s improving economy boosts the company’s subsidiary Florida Power & Light Company’s customer base. NextEra Energy has liquidity to meet its debt obligations.
Yet, due to the nature of NextEra Energy’s business, it is subject to complex rules and regulations. Risks in operating nuclear power-based generation units, unfavorable weather conditions, and increasing supply costs can adversely impact earnings.
(You can read the full research report on NextEra Energy here >>>)
Shares of Moody's have outperformed the Zacks Financial - Miscellaneous Services industry over the past three months (+17.0% vs. -1.3%). The company’s second-quarter 2024 results reflect a gradual revival of global bond issuances. Its dominant position in the credit rating industry, strategic buyouts and restructuring initiatives to achieve revenue diversification and global footprint expansion are likely to bolster the top line.
A strong balance sheet and earnings strength will likely keep its capital distribution activities sustainable. However, macroeconomic uncertainties and a challenging operating backdrop are concerns and will weigh on its financials.
Elevated expenses, primarily due to investments in franchises and acquisitions, are expected to hamper the company’s bottom-line growth. Stiff competition will continue to put some pressure on pricing, which may hurt the company’s profitability.
(You can read the full research report on Moody’s here >>>)
Other noteworthy reports we are featuring today include Ecolab Inc. (ECL), PayPal Holdings, Inc. (PYPL) and Keurig Dr Pepper Inc. (KDP).
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
Cisco (CSCO) Benefits From Strong Security Products Adoption
NextEra (NEE) Gains from Renewable Focus, Steady Investment
Rebound in Bond Issuance Aid Moody's (MCO), Higher Costs Ail
Featured Reports
Ecolab's (ECL) Cost Efficiency Program Offset Higher Prices
Per the Zacks analyst, Ecolab's is estimated to save $175 million in 2024 through its cost efficiency program. This program also helps the company to offset persistent inflationary trends.
Keurig Dr Pepper's (KDP) Brand Strength & Pricing Efforts Aid
Per the Zacks analyst, continued brand strength and significant pricing actions have been driving Keurig Dr Pepper's performance. The U.S. Refreshment Beverages segment also performs well.
Solid Asia Operation Aid Manulife (MFC), High Expenses Ail
Per the Zacks analyst, Manulife is set to grow on strong Asian business as well as expansion of Wealth and Asset Management business. However, increase in expenses weighing on margin concern.
Strategic Initiatives Aid Yum! Brands (YUM), High Costs Hurt
Per the Zacks analyst, Yum! Brands is benefiting from new unit growth, digital initiatives, and other expansion strategies. However, increased costs and expenses and declining comps ail.
ANSYS' (ANSS) Performance Driven by Robust Product Portfolio
Per the Zacks Analyst, higher demand for simulation solutions across verticals like aerospace and high tech is driving ANSYS's performance. Increasing expenses and stiff competition are concerning.
Coterra Energy (CTRA) to Benefit from Low Breakeven Costs
The Zacks analyst believes Coterra Energy's wells have low breakeven costs, ensuring profitability at most commodity prices. However, low gas prices will put pressure on Coterra Energy's margins.
Strong Volume Aids MarketAxess (MKTX), Growing Costs Ail
The Zacks analyst expects MarketAxess to gain from trading volume growth supported by increased trading automation. However, rising costs and benefits will trim its margins.
New Upgrades
PayPal (PYPL) Benefits From Increasing Total Payment Volume
Per the Zacks analyst, PayPal's total payment volume is rising owing to solid adoption of Venmo and merchant services. Further, growing momentum across PayPal Checkout experiences is positive.
Strong Portfolio Aids Take Two (TTWO) Amid Stiff Competition
Per the Zacks analyst, Take-Two's popular franchises including NBA 2K20 and Grand Theft Auto V is helping it to counter stiff competition from the likes of EA and Activision Blizzard.
Rise in Digital Subscribers to Lift NY Times' (NYT) Revenues
Per the Zacks analyst, The New York Times Company benefits from increased digital subscribers. Management anticipates digital-only subscription revenues to rise 12-15% in third quarter of 2024.
New Downgrades
Allegiant (ALGT) Grapples With Rising Expenses, High Debt
The Zacks Analyst is worried about the fact that rising operating expenses are likely to keep ALGT's bottom line under pressure. A debt-laden balance sheet is another concern.
Low COVID Test Volume, High Cost Hurt Walgreens (WBA) Profit
The Zacks analyst is worried about Walgreen Boots witnessing huge decline COVID-19 testing and vaccine volume. Mounting costs and expenses are putting pressure on profitability.
Intellia (NTLA) Banks on Genome Editing Pipeline Amid Rivalry
Per the Zacks analyst, Intellia's lead genome-editing candidate, NTLA-2001 being developed to treat transthyretin (ATTR) amyloidosis, holds promise. Stiff competition in the target market is a concern
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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
Ecolab Inc. (ECL) : Free Stock Analysis Report
Moody's Corporation (MCO) : Free Stock Analysis Report
Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
Keurig Dr Pepper, Inc (KDP) : Free Stock Analysis Report
