Top Research Reports for Accenture, Elevance Health & Analog Devices
Thursday, August 17, 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 Accenture plc (ACN), Elevance Health, Inc. (ELV) and Analog Devices, Inc. (ADI). 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 >>>
Accenture shares have performed roughly in-line with the Zacks Consulting Services industry as well as the broader market over the year-to-date period (+15.4% vs. +15.1% vs. +16.1% for the S&P 500 index). The company has been steadily gaining traction in its outsourcing and consulting businesses backed by high demand for services that can improve operating efficiencies and save costs.
Accenture has been strategically enhancing its cloud and digital marketing suite through buyouts and partnerships. The company’s strong operating cash flow has helped it reward its shareholders in the form of dividend payments and share repurchases, and pursue opportunities in areas that show true potential. Partly due to these tailwinds,
However, on the flip side, pricing pressure due to significant competition from strong companies like Genpact, Cognizant and Infosys, remains a concern. Global presence exposes it to foreign currency exchange rate fluctuations. Buyout-related integration risks continues to remain a concern.
(You can read the full research report on Accenture here >>>)
Shares of Elevance Health have declined -4.3% over the past year against the Zacks Medical Services industry’s decline of -15.3%. The company's rising expenses continue to put pressure on margins. Our estimate for the 2023 cost of products sold indicates a nearly 12% year-over-year jump. It expects cash flow to decline this year.
Its balance sheet with a rising debt level can affect financial flexibility. As such, the stock warrants a cautious stance. Nevertheless, Elevance Health's improving top line can be attributed to premium rate increases and higher memberships. Acquisitions and collaborations have enabled the firm to strengthen its business portfolio.
The company’s well-performing Medicare and Medicaid businesses, coupled with several contract wins, are expected to drive its membership going ahead. The company's growing Carelon business is a major positive. It utilizes excess capital to boost shareholder value.
(You can read the full research report on Elevance Health here >>>)
Shares of Analog Devices have gained +6.4% over the past year against the Zacks Semiconductor - Analog and Mixed industry’s gain of +7.3%. The company is riding on the strength across industrial and automotive markets. Solid demand for high-performance analog as well as mixed signal solutions is a tailwind.
Strong momentum across electric vehicle space on the back of its robust Battery Management System solutions is a positive. Increasing power design wins are other positives. Solid momentum of HEV platform across cabin electronics ecosystem is a tailwind. The company also remains optimistic about the growth prospects related to 5G.
However, weak momentum across major applications and leveraged balance sheet are concerns. Softness in communications and consumer markets is an overhang.
(You can read the full research report on Analog Devices here >>>)
Other noteworthy reports we are featuring today include Monster Beverage Corporation (MNST), L3Harris Technologies, Inc. (LHX) and West Pharmaceutical Services, Inc. (WST).
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
Accenture (ACN) Gains From Service Demand Amid Talent Cost
Elevance's (ELV) Strategic Buyouts & Product Expansion Aid
Battery Management System Solutions Aid Analog Devices (ADI)
Featured Reports
Solid Energy Drinks Unit Aids Monster Beverage's (MNST) Sales
Per the Zacks analyst, Monster Beverage continues to gain from strong demand for the energy drinks category as well as new product launches and innovation. This led to sales growth of 12% in Q2.
Favorable Budget Aids L3Harris (LHX), Higher Cost May Hit
Per the Zacks analyst, increased budgetary provision for defense spending boost growth prospects for L3Harris Technologies. Yet tight labor market induced cost hike for airlines may hurt the stock.
Robust Product Sales Aids West Pharmaceuticals' (WST) Prospects
Per the Zacks analyst, continued strength in West Pharmaceuticals' proprietary products segment will drive prospects amid uncertainty in global economy, which include recession or slow economic growth
Growing Regulated Base, Investments Aid FirstEnergy (FE)
Per the Zacks analyst FirstEnergy's investment of $18 billion through 2025, will strengthen its existing operations. Energizing the Future program will boost its regulated transmission capabilities.
Match Group (MTCH) Rides on Solid Tinder Adoption, Debt High
Per the Zacks analyst, Match Group is benefiting from increase in its average subscriber base, driven primarily by solid contribution from Tinder. However, highly leveraged balance sheet is a concern.
Revenues Aid Credit Acceptance (CACC), Asset Quality Ails
Per the Zacks analyst, decent demand for auto loans will keep supporting Credit Acceptance's top line growth. Worsening asset quality, high debt level and mounting expenses are major headwinds.
Intellia's (NTLA) Pipeline Progresses Markets Competitive
The Zacks analyst is encouraged by Intellia's pipeline progress with its in vivo genome-editing candidate NTLA-2001 for treating ATTR amyloidosis. However, this market faces stiff competition.
New Upgrades
Flowserve (FLS) Rides on Strong MRO & Aftermarket Activity
The Zacks analyst is optimistic about Flowserve's solid booking levels owing to strong MRO and aftermarket activity. The company recorded bookings of over $1 billion for six consecutive quarters.
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.
Sonos (SONO) Performance Gains From Solid Demand for Speakers
Per the Zacks analyst, Sonos' performance is gaining from the robust uptake of Era 100 and Era 300 speakers. Also, frequent product launch is a tailwind.
New Downgrades
United Parcel Service (UPS) Reels Under Revenue & Cost Woes
The Zacks analyst is worried about the weakness pertaining to total revenues due to a weak demand-scenario. Disruptions due to the labor negotiations and high costs are concerns.
Weak Cutting & Marking Hurts IPG Photonics' (IPGP) Prospects
Per the Zacks analyst, IPG Photonics is expected to suffer from weakness in cutting and marking applications amid challenging macroeconomic conditions and stiff competition.
Lower Demand & High Costs Ail Leggett's (LEG) Performance
Per the Zacks analyst, weak demand in Bedding Products and Furniture, Flooring & Textile Products segments have been hurting Leggett. Also, high costs and supply-chain owes are added concerns.
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Analog Devices, Inc. (ADI) : Free Stock Analysis Report
Accenture PLC (ACN) : Free Stock Analysis Report
Monster Beverage Corporation (MNST) : Free Stock Analysis Report
West Pharmaceutical Services, Inc. (WST) : Free Stock Analysis Report
L3Harris Technologies Inc (LHX) : Free Stock Analysis Report
Elevance Health, Inc. (ELV) : Free Stock Analysis Report
