Top research reports for Microsoft, Amgen and Honeywell
Tuesday, June 14, 2022
Zacks Research Daily features top research results from our team of analysts. Today’s Research Daily features new research reports on 16 major stocks, including Microsoft Corporation (MSFT), Amgen Inc. (AMGN) and Honeywell International Inc. (HON). These research reports have been handpicked from the approximately 70 reports published today by our team of analysts.
You can see all research reports from today here >>>
Microsoft stocks have held up better than the broader tech sector in the current market boundary (-19.6% decline year-to-date vs. -24.2% decline for the Zacks Tech sector), reflecting the company’s well-established position in space. But the stock nonetheless lagged the broader market as investors reassessed the risks associated with a faster-growing software player in a rising interest rate environment. Nevertheless, Microsoft’s performance benefits from the strength of its Azure cloud platform in the context of accelerated global digital transformation. Teams user growth is benefiting from continued remote working and widespread adoption of the hybrid/flexible working model.
The recovery in advertising and the job market boosted LinkedIn and search revenue. Solid adoption of new Xbox consoles is contributing to the performance of the gaming segment. The company is witnessing a growth in the user base of its various applications, including the Microsoft 365 suite, Dynamics and Power Platform. Microsoft expects Surface revenue to grow in the mid-teens, driven by strong demand for high-end devices.
(You can read the full Microsoft research report here >>>)
Amgen Shares have outperformed the Zacks Medical – Biomedical & Genetics sector over the past year (+2.1% vs -45.5%) thanks to a strong portfolio of early and late stage assets. Multiple Phase III readouts are expected in 2022. Lumakras, a first-in-class lung cancer treatment, is off to a strong start as its label expansion studies progress rapidly. Amgen has a strong biosimilar pipeline with potential new products that should drive long-term growth.
However, pricing and competitive pressure impact many Amgen products and franchises. Several of the drugs marketed by Amgen are facing price headwinds. The IRS tax dispute is an overhang on Amgen shares. Additionally, growing competition for its legacy products is hurting sales.
(You can read the full research report on Amgen here >>>)
Honeywell the shares performed better than the peer group as well as the broader market during the ongoing market weakness, reflecting the company’s operational excellence and favorable outlook for its key end markets.
The Zacks analyst believes the company will benefit from strength in productivity solutions and services, advanced sensing technologies and gas detection businesses. For 2022, the company expects organic revenue to grow 4-7% year-over-year. It is likely to benefit from acquisitions made over time. Additionally, the company’s ability to generate strong cash flow adds to its strength. It generously rewards shareholders through dividends and share buybacks.
(You can read the full Honeywell research report here >>>)
Other noteworthy reports we feature today include Booking Holdings Inc. (BKNG), Chubb Limited (CB) and Stryker Corporation (SYK).
Director of Research
Note: Sheraz Mian leads the equity research department at Zacks and is a well-known expert on overall earnings. He is frequently quoted in the written and electronic press and publishes the weekly Earnings Trends and Earnings Overview reports. If you would like to receive an email notification whenever Sheraz publishes a new article, please click here>>>
To read today
Adoption of Cloud & Office 365 Strength Aid Microsoft (MSFT)
Amgen (AMGN) is rapidly advancing pipeline development
Strong demand helps Honeywell (HON), Warehouse Automation Ails
Booking Holdings (BKNG) bets on improving customer bookings
According to the Zacks analyst, Booking Holdings is benefiting from increased customer bookings due to the ongoing vaccination campaign and the removal of travel restrictions around the world.
Better prices, new business growth drive Chubb Limited (CB)
According to the Zacks analyst, Chubb is expected to grow on the back of better pricing, new business growth and high renewal rates. Still, Cat Loss Exposure Induces Underwriting Volatility While Rising Costs Pressure Margin
MedSurg Central Unit Aids Stryker (SYK), Price Pressure Ails
According to the Zacks analyst, Stryker continues to benefit from the strong prospects of its mainline MedSurg. However, price pressure remains a problem.
TC Energy’s (TRP) C$25 billion growth plans to boost profits
The Zacks analyst believes TC Energy’s C$25 billion growth plans should support its earnings and dividend payouts, but worries about massive C$37 billion in debt.
BCE will benefit from increased demand for 5G and wireless networks
According to the Zacks analyst, BCE will benefit from increased demand for 5G and wireless networks as people work remotely. Pandemic-induced supply chain constraints remain a concern.
Hershey’s Top Line (HSY) enjoys robust pricing power
Zacks analyst says Hershey benefited from its pricing power, which is expected to remain strong in 2022. Net price realization boosted Hershey’s first-quarter revenue 6.9 points .
American Water (AWK) Operation Investment and Expansion Assistance
According to the Zacks analyst, American Water’s planned investment to strengthen infrastructure and expand operations through acquisitions and organic means will boost its performance.
Upbeat air travel demand bodes well for Alaska Air (ALK)
Improving air travel demand, particularly on the leisure front, is driving Alaska Air Group’s revenue. The carrier’s fleet modernization efforts are also encouraging.
Strong demand and pricing actions to boost Greif (GEF)
The Zacks analyst believes Greif will benefit from strong demand in many of its key markets as well as from its pricing actions and restructuring activities.
Pilgrim’s Pride (PPC) benefits from strong operations in the United States
According to the Zacks analyst, Pilgrim’s Pride is benefiting from rising sales in the United States for a while. During the first quarter of 2022, sales in the region jumped 29.1% year-over-year.
Lower volumes and transactional activity on eBay (EBAY)
Weakening online shopping momentum due to normalization to pre-pandemic levels is hurting eBay’s gross merchandise volume and transactional activity on its platform, the Zacks analyst said.
Rising operating expenses hurt Invesco’s profitability (IVZ)
The Zacks analyst said high costs from Invesco’s inorganic growth efforts and higher compensation costs will hurt earnings. The presence of high levels of goodwill on the balance sheet is unfortunate.
Softness in oil and gas unit, Ail MasTec (MTZ) project delays
According to the Zacks analyst, MasTec has witnessed a significant decline in Oil & Gas revenue, as well as major project schedule and regulatory delays.
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Microsoft Corporation (MSFT): Free Stock Analysis Report
Honeywell International Inc. (HON): Free Stock Analysis Report
Amgen Inc. (AMGN): Free Stock Analysis Report
Stryker Corporation (SYK): Free Stock Analysis Report
Chubb Limited (CB): Free Stock Analysis Report
Booking Holdings Inc. (BKNG): Free Stock Analysis Report
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