The Zacks Analyst Blog Highlights Caterpillar, Equinor, GSK, Sysco and AmerisourceBergen
For Immediate Release
Chicago, IL – January 9, 2023 – 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: Caterpillar Inc. CAT, Equinor ASA EQNR, GSK plc GSK, Sysco Corp. SYY and AmerisourceBergen Corp. ABC.
Here are highlights from Friday’s Analyst Blog:
Top Research Reports for Caterpillar, Equinor and GlaxoSmithKline
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 Caterpillar Inc., Equinor ASA and GSK plc. 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 >>>
Caterpillarshares have been standout performers lately, handily outperforming the broader market over the past year (+10.7% vs. -19.8% for the S&P 500 index). The company’s cost-saving actions, strong end-market demand and pricing actions has offset the impact of the supply chain snarls and cost pressures. The Zacks analyst expect Caterpillar's adjusted earnings per share for 2022 to grow at 29.2% and revenues are predicted to rise 13.5%.
The Construction Industries segment is expected to benefit from the rising construction activities in the United States and other parts of the world. Backed by demand for commodities fueled by the energy-transition trend, a thriving mining sector will aid the Resource Industries segment.
Its dividend yield and payout ratio are higher than its peers. A strong liquidity position, investments in expanding services and digital initiatives will help Caterpillar deliver outsized returns.
(You can read the full research report on Caterpillar here >>>)
Shares of Equinor have gained +16.1% over the past year against the Zacks Oil and Gas - Refining and Marketing industry’s gain of +25.3%. This company is one of the premier integrated energy companies, with operations spreading across 30 countries. In 2021, the company completed 21 exploration wells, with 8 commercial discoveries.
The company stated its production growth expectations at 1% for 2022. To combat climate change, the company is actively investing in renewable energy projects, comprising power generation from solar and wind energy. Also, the company’s board increased the extraordinary cash dividend to 70 cents per share from 50 cents per share for the third quarter of 2022.
However, the company’s balance sheet has significant debt exposure as compared to the composite stocks in the industry. Also, the company is not being able to capture the potential profit growth from commodity prices that have reached record highs. As such, the stock warrants a cautious stance.
(You can read the full research report on Equinor here >>>)
Shares of GSK have underperformed the Zacks Medical - Biomedical and Genetics industry over the past year (-37.1% vs. -16.4%). The company is facing generic competition for key drug, Advair is hampering sales of GSK’s respiratory products, which we believe may not be compensated by new respiratory drugs. Competitive pressure on HIV drugs has risen.
According to the analysts' estimates the GSK’s top line suggests a CAGR decline of around 3.5% over the next three years. Estimate movements have been stable ahead of Q4 results. However, GSK’s specialty products like Dovato, Nucala, Trelegy Ellipta, Shingrix, Juluca are driving sales, making up for a decline in Established Pharmaceuticals due to generic erosion.
The continued recovery in Shingrix sales is encouraging. GSK has made significant progress in its pipeline. Several pipeline readouts are expected in the near term. The spin-off of the Consumer unit this year has allowed it to focus on drug development.
(You can read the full research report on GSK here >>>)
Other noteworthy reports we are featuring today include Sysco Corp. and AmerisourceBergen Corp.
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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.
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GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report
Caterpillar Inc. (CAT) : Free Stock Analysis Report
AmerisourceBergen Corporation (ABC) : Free Stock Analysis Report
Sysco Corporation (SYY) : Free Stock Analysis Report
Equinor ASA (EQNR) : Free Stock Analysis Report
