Top Stock Reports for Walt Disney, Marathon Petroleum & Moderna

·5 min read

Thursday, March 30, 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 The Walt Disney Co. (DIS), Marathon Petroleum Corp. (MPC), and Moderna, Inc. (MRNA). 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 Walt Disney have gained +11.5% over the year-to-date period against the Zacks Media Conglomerates industry’s gain of +13.5%. The Zacks analyst believes that Disney is benefiting from the growing popularity of Disney+, owing to a strong content portfolio and a cheaper bundle offering. The strong line-up of movies that includes The Little Mermaid; Guardians of the Galaxy: Volume 3; Elemental; Indiana Jones and the Dial of Destiny and Haunted Mansion bodes well for the Media and Entertainment Distribution segment.

Revival in Parks, Experiences and Products businesses is encouraging. Theme Park business is likely to gain from strong demand across both domestic and international parks. However, Disney+’s profitability continues to be negatively impacted by higher programming and production costs across Disney+, ESPN+ and Hulu.

(You can read the full research report on Walt Disney here >>>)

Marathon Petroleum shares have outperformed the Zacks Oil and Gas - Refining and Marketing industry over the past year (+56.8% vs. +8.3%). The Zacks analyst believes that Marathon Petroleum’s sale of its Speedway retail business for $21 billion provided the downstream operator with a much-needed cash infusion. The deal also comes with a 15-year fuel supply agreement per which Marathon Petroleum will supply 7.7 billion gallons of gasoline per year to 7-Eleven, thus ensuring a steady revenue stream.

But while refining fundamentals have certainly brightened from the covid lows, the sector is not out of the woods yet in terms of cash flows that remain anemic and well below the pre-crisis levels. In particular, the weakness in business travel demand remains a complicating factor.

(You can read the full research report on Marathon Petroleum here >>>)

Shares of Moderna have declined -17.2% over the year-to-date period against the Zacks Medical - Biomedical and Genetics industry’s decline of -4.8%. The Zacks analyst believes that lower cases of COVID-19 infections are fueling uncertainty regarding demand for vaccinations, resulting in declining product sales. The launch of COVID vaccines by competitors like Sanofi and Novavax will also likely lead to a loss of product sales.

Currently, Moderna is conducting three ongoing late-stage studies evaluating RSV, CMV, and influenza vaccines. However, these candidates are still years away from commercialization. Nonetheless, Moderna expects to record a minimum of around $5.0 billion from COVID vaccine sales in 2023.

(You can read the full research report on Moderna here >>>)

Other noteworthy reports we are featuring today include Intercontinental Exchange, Inc. (ICE), Nucor Corp. (NUE), and CenterPoint Energy, Inc. (CNP).

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

Disney+ Growth & Revival of Parks Business Aids Disney (DIS)

Marathon (MPC) to Gain from Sale of Speedway Retail Unit

Moderna's (MRNA) Overdependence on COVID Jab Revenues A Woe

Featured Reports

Investments Aid CenterPoint Energy (CNP), Weak Solvency Woes
Per the Zacks analyst, CenterPoint Energy's investment in infrastructure and expansion projects tends to boost its long-term growth prospects. Yet, its weak solvency position remains a bottleneck.

Dividends & Buybacks Buoy GATX, Economic Uncertainty Hurts
The Zacks analyst is impressed by GATX's efforts to reward shareholders through dividends & buybacks. However, economic slowdown, geopolitical tensions, and supply-chain woes are concerning.

Watts Water (WTS) To Benefit From Strong Product Portfolio
Per the Zacks analyst, Watts Water is gaining from a diversified product portfolio, geographic expansion, and efficient cost management. Stiff competition and supply chain woes are headwinds.

Strength in Athleta & Cost Savings to Aid Gap's (GPS) Growth
Per the Zacks analyst, Gap has been witnessing continued strength in Athleta brand. Also, its cost-cutting plans are likely to generate $150 million in annualized savings in the latter half of FY23.

Strategic Buyouts Aid Intercontinental (ICE), Cost Woes Stay
Per the Zacks analyst, a number of acquisitions have helped Intercontinental expand its business, which, in turn, has led to top-line growth. Increasing operating expenses remain a concern.

Expansion Strategies Aid Federated (FHI), Rising Costs Ail
Per the Zacks analyst, focus on acquiring money market assets will drive Federated's (FHI) revenues and asset under management AUM. Yet, rising costs might limit the company's bottom-line growth.

Solid Buyouts Aid Builders FirstSource (BLDR) Amid High Cost
Per the Zacks analyst, accretive acquisitions and digital initiatives bode well for Builders FirstSource. However, high cost and supply-chain risks hurt.

New Upgrades

Murphy USA (MUSA) Gains from Proximity to Walmart Stores
The Zacks analyst likes the proximity of Murphy USA's fuel stations to Walmart supercenters and the consistent traffic that these stores attract, thereby driving above-average fuel sales volume.

Nucor (NUE) Gains on Strong Demand, Expansion Actions
Per the Zacks analyst, Nucor will benefit from strong demand in its major end markets. Efforts to boost production capacity through several growth projects will also drive profitability.

Robust Ticket Sales Boosts Live Nation's (LYV) Prospects
Per the Zacks analyst, Live Nation is likely to benefit from pent-up demand for live events, solid ticket sales, and sponsorship business. Also, focus on strengthening of client base bode well.

New Downgrades

Rising Costs Adversely Impacting Baxter's (BAX) Earnings
Per the Zacks analyst, inflationary pressures and the rising cost of labor are driving the decline in Baxter's earnings. The trend is likely to continue in 2023.

Supply Chain, War and Inflation to Hurt NCR's (NCR) Revenues
Per the Zacks analyst, inflationary pressures along with business disruptions caused by the supply-chain issues and Russia-Ukraine war are likely to negatively impact NCR's revenues in the near term.

Macroeconomic Headwinds to Hurt Perrigo's (PRGO) 2023 Sales
Though Perrigo's (PRGO) has initiated several initiatives to lower its costs and improve margins, sales continue to be hurt due to macroeconomic pressures like currency headwinds and inflation.

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Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report

Nucor Corporation (NUE) : Free Stock Analysis Report

CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report

The Walt Disney Company (DIS) : Free Stock Analysis Report

Moderna, Inc. (MRNA) : Free Stock Analysis Report

Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report

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