Top Analyst Reports for Humana, Cintas & Biogen
Thursday, September 7, 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 Humana Inc. (HUM), Cintas Corp. (CTAS) and Biogen Inc. (BIIB). 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 Humana have declined -8.9% over the year-to-date period against the Medical - HMOs industry’s decline of -10.8%. The companies escalating operating costs are affecting profits. A debt-laden balance sheet induces a rise in interest expenses. As such, the stock warrants a cautious stance.
Nevertheless, Humana's Medicaid business benefits from several contract wins and renewals thereby contributing to top line. Strategic buyouts and alliances place it well for growth in the future.
Solid contributions from the Insurance and CenterWell segments bode well. Management estimates adjusted 2023 EPS to be at least $28.25, reflecting minimum growth of 12% year over year. It has been deploying excess capital through share buybacks and dividend payments on balance sheet strength.
(You can read the full research report on Humana here >>>)
Cintas’ shares have outperformed the Zacks Uniform and Related industry over the year-to-date period (+10.6% vs. +9.2%). Strong segmental performances have been aiding the company. Increased productivity level and new product launches are boosting the Uniform Rental and Facility Services segment’s performances.
Strength in the health and wellness businesses and high customer retention levels are driving the growth of the First Aid and Safety Services segment. The company's focus on enhancement of its product portfolio holds promise. Cintas’ efforts to reward shareholders are impressive.
However, the rising cost of sales, and increasing selling and administrative expenses pose a threat to the company’s bottom line. High tax rate is an added concern for Cintas. Also, foreign currency headwinds are weighing on the company's top line.
(You can read the full research report on Cintas here >>>)
Shares of Biogen have outperformed the Zacks Medical - Biomedical and Genetics industry over the past year (+26.8% vs. -10.8%). The company’s potential new products like Leqembi in Alzheimer’s disease, Qalsody in ALS and zuranolone in depression can help revive growth. With Leqembi receiving traditional approval and broader CMS coverage in the United States, it has the potential to generate blockbuster sales.
Biogen is exploring both early to mid-stage assets and late-stage assets to build its pipeline. However, Biogen’s has a high-risk pipeline. Sales of Leqembi are expected to be slow in 2023.
It is also facing multiple challenges at present like the generic erosion of Tecfidera, competitive pressure for Spinraza, declining profit share of Rituxan in the United States and the failure of Aduhelm. Most of its key drugs are facing declining sales.
(You can read the full research report on Biogen here >>>)
Other noteworthy reports we are featuring today include American Water Works Company, Inc. (AWK), Royal Caribbean Cruises Ltd. (RCL) and Markel Group Inc. (MKL).
Mark Vickery
Senior Editor
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
Humana (HUM) Strong on Brisk Medicaid Business & Buyouts
Uniform Rental Unit Aids Cintas (CTAS) Amid Rising Costs
Biogen's (BIIB) New Drugs Can Help Revive Growth
Featured Reports
Investment & Expanding Operation Aid American Water (AWK)
Per the Zacks analyst American Water's planned investment to strengthen infrastructure and expanding operation through acquisition and organic means are going to drive its performance.
Markel (MKL) Continues to Gain From Strategic Acquisitions
Per the Zacks analyst, strategic acquisitions have aided Markel to achieve profitable growth in insurance operations, expand its reinsurance product offerings and boost its surety capabilities.
NetApp (NTAP) Performance Gains From New Product Launches
Per the Zacks analyst, NetApp's performance gains from frequent product launches amid data-driven digital and cloud transformations. Weak IT spending amid macroeconomic weakness remains an overhang.
Rising Revenues Aid Northern Trust (NTRS), Rising Costs Ail
Per Zacks analyst, Northern Trust's revenue growth due to rising interest rates and focus on expanding client base reflect strong organic growth. Yet, investment in technology keep costs high.
Snap-On's (SNA) RCI Program Aids Sales & Margins Growth
Per the Zacks analyst, Snap-On's focus on the rapid continuous improvement (RCI) program, designed to enhance organizational effectiveness and minimize costs, has boosted sales, margins and savings.
Strong Application & Commerce Business Aids GoDaddy (GDDY)
Per the Zacks analyst, GoDaddy is benefiting from strong momentum across the Applications & Commerce business and expanding global footprint.
Brinker (EAT) Banks on Expansion Initiatives, High Costs Ail
Per the Zacks analyst, Brinker's focus on expansion plans and sales building efforts bode well. However, uncertain macro environment and inflationary pressures are concerns.
New Upgrades
Strong Booking Trends Aid Royal Caribbean's (RCL) Prospects
Per the Zacks analyst Royal Caribbean is benefiting from solid bookings with respect to North America and European sailings. Also, strong pricing and solid onboard spending bodes well.
Brand Strength to Drive Abercrombie & Fitch's (ANF) Top Line
Per the Zacks analyst, Abercrombie & Fitch is gaining from continued strength in the Abercrombie brand and sequential improvement in the Hollister brand. It expects FY23 sales growth of 10%.
USA Compression (USAC) to Gain from Strong Gas Demand
The Zacks analyst believes that the equipment supplied by USA Compression Partners is an integral part of natural gas pipelines, helping the partnership to earn stable future cash flows.
New Downgrades
Knight-Swift (KNX) Grapples With Challenging Freight Market
Per the Zacks analyst, softness in freight demand hurt Knight-Swift's first-quarter 2023 results. Management lowered the 2023 earnings per share guidance mainly due to freight weakness.
Poor Asset Quality, High Rates Hurt Ally Financial (ALLY)
Per the Zacks analyst, weak asset quality amid deteriorating macroeconomic outlook is major headwind for Ally Financial. Steadily rising expenses and high interest rates are other major headwinds.
Macroeconomic Volatility, Stiff Competition Ail Accuray (ARAY)
The Zacks analyst is worried about Accuray's operation in a tough competitive space. The possibility of Accuray's business being affected by global market conditions is an added issue.
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Biogen Inc. (BIIB) : Free Stock Analysis Report
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Humana Inc. (HUM) : Free Stock Analysis Report
Cintas Corporation (CTAS) : Free Stock Analysis Report
Markel Group Inc. (MKL) : Free Stock Analysis Report
American Water Works Company, Inc. (AWK) : Free Stock Analysis Report
