Wednesday, September 16, 2020
The Zacks Research Daily presents the best research output of our analyst team. Today’s Research Daily features new research reports on 12 major stocks, including Comcast (CMCSA), NextEra Energy (NEE) and Royal Dutch Shell (RDS.A). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Comcast shares have underperformed the Zacks Cable Television industry in the year-to-date period (+3.3% vs. +8%). The Zacks analyst believes that Comcast is benefiting from solid high-speed Internet customer wins.
Its strategy to provide high-speed Internet at an affordable price plays a pivotal role in providing connectivity and improving customer experience. Moreover, coronavirus-led increased media consumption, work-from-home and online-learning wave bode well for Comcast. Peacock’s launch has been a key catalyst.
However, Comcast persistently suffers video-subscriber attrition due to cord cutting. Theme-park revenues are expected to suffer from lower footfall and indefinite closure of Hollywood park. Further, Sky’s third and fourth quarter EBITDA on a combined basis is expected to decline roughly 60% year over year. Weakness in film business is also a headwind. Moreover, a leveraged balance sheet is a concern.
Shares of NextEra have gained +33.1% over the past year against the Zacks Electric Power industry’s fall of -10.8%. The Zacks analyst believes that NextEra Energy is poised to benefit from its long-term investment plans through 2022, aimed at strengthening infrastructure. The Gulf Power acquisition has strengthened the company’s operations in Florida.
NextEra Energy has increased financial expectations for 2021 and 2022, and is extending long-term growth outlook through 2023, courtesy of persistent renewable asset additions to the generation portfolio and execution across all business segments.
The company has continued with capital projects amid this crisis. However, its nature of business is subject to complex and comprehensive federal, state and other regulations. If the planned nuclear plant outages last longer or an unplanned outage occurs, the company’s operations and profitability might be hampered.
Royal Dutch Shell shares have gained +8.5% over the past six months against the Zacks International Integrated Oil industry’s rise of +10.2%. The Zacks analyst believes that Royal Dutch Shell’s trading business was instrumental in helping the supermajor partly cushion the impact of oil price slump and report better-than-expected Q2 earnings.
In particular, the Anglo-Dutch multinational company’s position as a key supplier of LNG should benefit its long-term cash flow growth on the back of attractive growth opportunities.
It is also making solid progress toward the transition to a renewable energy-focused future. Europe’s largest oil company hasn’t been immune to the coronavirus-induced downturn and is also facing some headwinds on the production front.
Other noteworthy reports we are featuring today include Norfolk Southern (NSC), The Interpublic Group of Companies (IPG) and iRobot (IRBT).
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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
The Zacks analyst is worried about the overall tepid volumes (down 19% in first-half 2020). Efforts to save costs are, however, praiseworthy.
The Zacks analyst is impressed by Interpublic’s strategy to expand its portfolio, global presence and top line with the help of multiple acquisitions.
Per a Zacks analyst, iRobot (IRBT) is gaining from a solid product portfolio, including Roomba and Braava, as well as from manufacturing diversification.
Per the Zacks analyst, Corcept’s Cushing’s syndrome drug Korlym shows a steady progress. However, heavy dependence on Korlym for growth is a worry.
Per the Zacks analyst, NETGEAR is well poised to benefit from robust demand for networking solutions driven by continuous investments in R&D activities.
Per the Zacks analyst, decent loan growth and efforts to improve fee income will likely aid BankUnited’s top line. Its strategy to increase low-cost deposits is expected to further support revenues.
Per the Zacks analyst, a number of buyouts have aided Markel to achieve profitable growth in insurance operations, expand its reinsurance product offerings, and boost its surety capabilities.
Per the Zacks analyst, uncertainties revolving around Boeing’s 737 Max aircraft may hamper the stock’s growth. Further, prolonged delays in Asco acquisition may further escalate its costs.
According to the Zacks analyst, lower global nitrogen prices due to higher supply availability will weigh on CF Industries’ sales and margins.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.