Top Research Reports for Thermo Fisher Scientific, AMD & BP
Monday, October 9, 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 Thermo Fisher Scientific Inc. (TMO), Advanced Micro Devices, Inc. (AMD) and BP p.l.c. (BP). 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 Thermo Fisher Scientific have declined -9.3% over the year-to-date period against the Zacks Medical - Instruments industry’s decline of -10.4%. The company’s overall business growth is dented by lower economic activity in China and cautious spending across its customer base globally, particularly in biotech. Declining COVID-19 testing revenues impede the company’s growth. The contraction of margins, due to escalating costs remain a concern.
However, on a positive note, strong execution of proven growth strategy, launching a range of high-impact, innovative new products are likely to aid the company’s growth in coming quarters. The company strengthened its commercial engine and trusted partner status with the opening of a customer center of excellence in Milan.
(You can read the full research report on Thermo Fisher Scientific here >>>)
AMD shares have outperformed the Zacks Electronics - Semiconductors industry over the year-to-date period (+65.6% vs. +42.0%). The company is benefiting from the growing adoption of fourth-generation EPYC. Genoa adoption has been strong in the second quarter of 2023, with deployments from the likes of Microsoft, AWS, Alibaba and Oracle.
Availability of Bergamo is crucial as a number of server providers like Dell, HPE, Lenovo and Supermicro are set to launch their new Bergamo-based platforms in the third quarter. AMD continues to benefit from acquisitions, including Xilinx and Pensando, which has diversified its business.
However, weakness in the Gaming and Embedded segment revenues are expected to hurt top-line growth. For 2023, our estimate for the Gaming segment is pegged at $6.55 billion, indicating a decline of 3.8% year over year.
(You can read the full research report on AMD here >>>)
Shares of BP have outperformed the Zacks Oil and Gas - Integrated - International industry over the year-to-date period (+10.2% vs. +1.7%). The company has cleared the huge litigation expenses related to the oil spill incident of 2010, it had to divest some of its best operating properties. The asset divestments might hinder BP’s future cash generating opportunities going forward.
BP’s balance sheet is more levered than most peers, limiting its financial flexibility. Thus, the integrated energy company is more vulnerable to economic downturn than its peers. While crude oil prices are currently on an upward trend, the broader commodity pricing environment is not as robust as it was a year ago.
As a result, the Zacks analyst anticipates that the leading integrated energy company's revenue to decrease in 2023. Also, we project that exploration expenses will rise by 47% this year, impacting the company’s bottom line. Given these headwinds, it's advisable to avoid BP stock for now.
(You can read the full research report on BP here >>>)
Other noteworthy reports we are featuring today include Medtronic plc (MDT), Marsh & McLennan Companies, Inc. (MMC) and Palo Alto Networks, Inc. (PANW).
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
Strategic Buyout Aids Thermo Fisher (TMO) Amid Forex Woes
Robust Product Portfolio & Partnerships Aid AMD's Prospects
BP's Robust Upstream Project Portfolio & Transition Plan Aid
Featured Reports
Medtronic (MDT) Gains in Market Share, Global Growth Robust
The Zacks analyst is impressed that despite macro-economic issues, Medtronic is reporting market share gains across core businesses. Non-U.S. developed and emerging markets expansions remain strong.
Strategic Buyouts Aid Marsh & McLennan (MMC), Expenses Hurt
Per the Zacks analyst, strategic acquisitions help Marsh & McLennan expand geographically, boost current segments and develop new businesses. However, rising expenses remain a concern.
Cadence (CDNS) Benefits from Diversified Product Portfolio
Per the Zacks analyst, Cadence's performance is gaining from solid demand for the company's diversified product portfolio. Stiff competition and uncertain macroeconomic conditions remain concerns.
Order Flow Aids General Dynamics (GD) Amid Supply Challenges
Per the Zacks Analyst, solid order flow for its products bolsters General Dynamics' revenue growth prospects. Yet COVID-19 led supply chain challenges may impact its revenues.
Chipotle (CMG) Banks on Digital Initiatives, High Costs Ail
Per the Zacks analyst, Chipotle's consistent strength in digital sales, rise in menu prices and new restaurant openings bode well. However, commodity and wage inflation are a concern.
Store Expansion Aids AutoZone (AZO), High Debt Pile Ails
While store expansion efforts in both domestic and internal markets are set to boost AutoZone's prospects, a high debt-to-capital ratio of 2.41 concerns the Zacks analyst.
High Demand Aids SBA Communications' (SBAC) Amid 5G Hype
Per the Zacks Analyst, SBA Communications to benefit from the high demand for its wireless infrastructure assets amid 5G deployment efforts by carriers. However, customer concentration is a key woe.
New Upgrades
Palo Alto (PANW) Rides on Product Strength, Marketing Effort
Per the Zacks analyst, Palo Alto Networks is gaining from solid contributions of its growth-oriented products including Strata, Prisma and Cortex. Increasing marketing efforts are also positive.
Lamb Weston (LW) Benefits From Strategic Pricing Actions
Per the Zacks analyst, Lamb Weston is gaining on robust pricing actions. In the fiscal first quarter, price/mix increased 23%, reflecting gains from strategic pricing in both business units.
Dillard's (DDS) Inventory Management Efforts Aid Performance
Per the Zacks analyst, Dillard's has been witnessing improved inventory levels and consumer demand. Its ongoing inventory management efforts have led to reduced inventory in Q2.
New Downgrades
Cenovus (CVE) Likely to Suffer From Rising Input Expenses
Per the Zacks analyst, higher oil and gas prices can lead to increased input costs for Cenovus, which can put pressure on the company's profit margins.
Delta Air Lines (DAL) Reels Under High Operating Expenses
The Zacks analyst is worried about the elevated fuel costs. High non-fuel unit costs represent another headwind.
Sluggishness in LSAG Segment Hurts Agilent Technologies (A)
Per the Zacks analyst, Agilent Technologies is suffering from weak Life Sciences & Applied Markets Group (LSAG) segment owing to soft market conditions in China and a sluggish pharma market.
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Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
BP p.l.c. (BP) : Free Stock Analysis Report
Medtronic PLC (MDT) : Free Stock Analysis Report
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report
Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
