For Immediate Release
Chicago, IL – December 8, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Analog Devices, Inc. ADI, The Southern Co. SO, Canadian Pacific Railway Ltd. CP, CME Group Inc. CME and UBS Group AG UBS.
Here are highlights from Wednesday’s Analyst Blog:
Top Stock Reports for Analog Devices, Southern Co. and Canadian Pacific
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 Analog Devices, Inc., The Southern Co. and Canadian Pacific Railway Ltd. 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 >>>
Analog Devices’shares have declined -10.6% over the past year against the Zacks Semiconductor - Analog and Mixed industry’s decline of -18.3%. The company is facing pandemic-induced supply-chain constraints are concerns. Further, geopolitical tensions led by Russia-Ukraine war are major overhangs.
However, strength across communication, consumer, industrial and automotive end-markets drove the results. Solid demand for high-performance analog as well as mixed signal solutions was a tailwind. Strong momentum across the electric vehicle space on the back of robust Battery Management System solutions remains a positive.
Further, growing power design wins are other positives. Solid momentum of HEV platform across cabin electronics ecosystem remains a tailwind. Considering the above-mentioned factors, the Zacks analysts expect first-quarter fiscal 2023 total revenue to rise 15.3% year over year.
(You can read the full research report on Analog Devices here >>>)
Shares of Southern Company have outperformed the Zacks Utility - Electric Power industry over the past year (+5.8% vs. -0.8%). The company is leveraging on the demographics of its operating territories, as in healthy population and job growth, Southern Company has gradually increased its customer base.
With good rate base growth and constructive regulation, the power supplier is expected to generate steady earnings and dividend growth in the coming years.
However, its elevated leverage, along with continued timing and cost overrun issues over its Vogtle project, are major overhangs. While the electric utility holding company’s debt-to-capitalization of 58.7% restricts financial flexibility, its $25-billion Vogtle nuclear plant has already exceeded budget and is years behind schedule. Therefore, Southern Company warrants a cautious stance from the investors.
(You can read the full research report on Southern Company here >>>)
Shares of Canadian Pacific Railway have outperformed the Zacks Transportation - Rail industry over the past year (+9.5% vs. -11.0%). With gradual recovery in freight-market conditions, freight revenues are increasing. Notably, freight revenues, which account for majority of Canadian Pacific's top line, increased 6.7% in the first nine months of 2022. CP's efforts to reward its shareholders through dividends also bode well.
In third-quarter 2022, CP shelled out dividends worth C$177 million, up 39.4% year over year. Partly due to these headwinds, the stock has gained in the past year.
However, high operating expenses (up 12% year over year in the first nine months of 2022) continue to weigh on the company's bottom line. Elevated fuel costs (up 60.7% in the first nine months of 2022) are leading to increased operating expenses. High debt-to-equity ratio also does not bode well for CP as it implies that the company is aggressively financing its growth with debt.
(You can read the full research report on Canadian Pacific Railway here >>>)
Other noteworthy reports we are featuring today include CME Group and UBS Group AG.
Why Haven’t You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Zacks Investment Research
800-767-3771 ext. 9339
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report