Top Research Reports for American Express, Enbridge & Micron Technology
Friday, April 28, 2023
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 American Express Co. (AXP), Enbridge Inc. (ENB) and Micron Technology, Inc. (MU). 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 American Express have outperformed the Zacks Financial - Miscellaneous Services industry over the past six months (+7.6% vs. -2.5%). The company has adopted several growth initiatives, such as launching new products, reaching new agreements and forging alliances, are boosting its revenues. We expect the top line at $60.8 billion in 2023.
Consumer spending on T&E, which carry higher margins for AmEx, is advancing well. Its balance sheet looks strong with manageable debt. Solid cash-generation abilities enable the pursuit of business investments and capital deployment.
However, with higher utilization of the company’s cards, expenses in the form of card member services and card member rewards are likely to strain the margins. Also, marketing and business development expense is expected to rise. As such, the stock warrants a cautious stance.
(You can read the full research report on American Express here >>>)
Enbridge’s shares have outperformed the Zacks Oil and Gas - Production and Pipelines industry over the past six months (+4.3% vs. +4.1%). The company has the longest and most sophisticated oil and liquids pipeline system in the world, which spreads across 17,809 miles. Hence, a significant portion of the midstream operator’s earnings is generated from transportation operations, driven by a string of long-term contracts.
ENB sanctioned C$8 billion of organic growth projects in 2022, bringing its total backlog to C$17 billion. The firm expects to put more than C$10 billion growth projects into service in 2024 and beyond. This is expected to generate significant EBITDA growth in the coming years.
However, ENB’s significant debt exposure is concerning. ENB reported weak fourth-quarter results due to lower contributions from the Renewable Power Generation segment. Also, it has mostly been yielding lower dividends than the industry. As such, the stock warrants a cautious stance.
(You can read the full research report on Enbridge here >>>)
Shares of Micron Technology have outperformed the Zacks Semiconductor Memory industry over the past six months (+17.0% vs. +14.9%). The company is witnessing growing demand for memory chips from cloud-computing providers and acceleration in 5G (fifth-generation) cellular network adoptions.
Rising mix of high-value solutions, 5G adoption in Internet of Things devices and wireless infrastructure, enhancement in customer engagement and improvement in cost structure are growth drivers.
Nonetheless, Micron near-term prospect looks gloomy as weakening consumer spending is negatively impacting demand for memory chips used in personal computers (PCs) and smartphones. Bit shipments for the DRAM and NAND memory chips may decline in the near-term as PC makers are adjusting their inventory due to weakened demand.
(You can read the full research report on Micron Technology here >>>)
Other noteworthy reports we are featuring today include Old Dominion Freight Line, Inc. (ODFL), The AES Corp. (AES) and Nordson Corp. (NDSN).
Mark Vickery
Senor 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
Strong Consumer Spending Aids Revenue Growth at AmEx (AXP)
Enbridge (ENB) to Gain From $8B Midstream Growth Projects
Rising High-Value Solution Mix Aids Micron Technology (MU)
Featured Reports
Old Dominion (ODFL) Rides on Dividends & Buyback, Expenses Ail
The Zacks analyst likes the shareholder-friendly measures adopted by Old Dominion. However, rising operating expenses are concerning as they are likely to keep the bottom line under pressure.
Investments Aid AES Corp (AES) Amid the Rising Inflation
Per the Zacks Analyst, increased investments in renewables bolsters AES Corporation earnings growth prospects. Yet, the rising inflation resulting in increased expenses remains a bottleneck.
Strength in End Market Aids Nordson (NDSN) Amid Forex Woes
Per the Zacks analyst, Nordson will benefit from strength across its packaging and product assembly end markets in the Americas and Europe. However, forex woes are concerning for the company.
New Products to Aid Wix.com (WIX) Amid Stiff Competition
er the Zacks analyst, Wix's performance is gaining from robust uptake of Wix Payments and other new e-commerce applications. However, stiff competition is a headwind.
CRISPR's (CRSP) Dependence on Collaboration Revenues A Woe
While CRISPR Therapeutics' pipeline progress is impressive, the Zacks Analyst is concerned about a lack of stable stream of income as the company has no marketed drugs in its portfolio.
New Upgrades
Sports Betting Expansion to Boost Boyd Gaming (BYD) Prospects
Per the Zacks analyst, Boyd Gaming is likely to benefit from its interactive gaming platform, FanDuel partnership and expansion initiatives. Also, strength in Las Vegas business bode well.
NuVasive (NUVA) Rides on Robust International Business
The Zacks analyst is impressed with NuVasive's robust growth in international business in Q4 led by the continued return of MAGEC and PRECICE titanium products.
New Downgrades
Zumiez (ZUMZ) Witnesses Inflationary and Other Headwinds
Per the Zacks analyst, Zumiez's performance has been hurt by a tough operating environment, including inflationary pressures, a promotional landscape, increased costs and foreign currency headwinds.
Rising Material Cost Hurts IPG Photonics' (IPGP) Prospects
Per the Zacks analyst, IPG Photonics is suffering from inflationary pressure on input costs. Increasing lead time for certain components is a significant headwind.
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American Express Company (AXP) : Free Stock Analysis Report
Micron Technology, Inc. (MU) : Free Stock Analysis Report
The AES Corporation (AES) : Free Stock Analysis Report
Enbridge Inc (ENB) : Free Stock Analysis Report
Old Dominion Freight Line, Inc. (ODFL) : Free Stock Analysis Report
Nordson Corporation (NDSN) : Free Stock Analysis Report
