Wednesday, January 4, 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 NextEra Energy, Inc. (NEE), BlackRock, Inc. (BLK) and The TJX Companies, Inc. (TJX). 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 >>>

NextEra Energy’s shares have outperformed the Zacks Utility - Electric Power industry over the past six months (+6.0% vs. +0.4%). The company is expanding operations through the efficient execution of organic projects and acquisitions. The company currently has many renewable projects in its backlog and their completion will ensure reduced emissions.

The merger of Gulf Power and FPL strengthens NextEra’s position in Florida. FPL’s customer base is expanding as Florida’s economy improves and its services become more reliable. NextEra has ample liquidity to meet its near-term debt obligations.

However, the nature of its business is subject to complex federal, state and other regulations. Risk in operating nuclear units, unfavorable weather conditions and an increase in supply costs adversely impact earnings.

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

Shares of BlackRock have outperformed the Zacks Financial - Investment Management industry over the past six months (+14.8% vs. +9.8%). The company continues to restructure the equity business, which, along with strategic acquisitions, will likely keep supporting revenue growth, and help expand market share and footprints globally.

Robust assets under management (AUM) balance will further support the company's top line. Though our estimates for revenues reflect year-over-year declines in 2022 and 2023, these will increase in 2024 as the operating backdrop becomes more favorable. BLK's capital deployments reflect a solid liquidity position.

However, elevated expenses (mainly owing to higher administration costs) are expected to hurt the company’s profits. Its high dependence on overseas revenues is worrisome. The rise in equity market volatility and a fall in asset prices make us apprehensive.

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

Shares of TJX have outperformed the Zacks Retail - Discount Stores industry over the past year (+5.2% vs. -12.2%). The company’s off-price business model, strategic store locations, impressive brands and fashion products and supply-chain management have been working well. The TJX Companies is benefiting from its solid store and e-commerce growth efforts.

TJX is registered an improved pretax profit margin in the third quarter of fiscal 2023. Management is optimistic about its capabilities to provide impressive brands and gifts to its stores and online during the holiday season.

However, the company has been grappling with increased freight costs. In addition, the company saw additional wage costs in the fiscal third quarter. Management is projecting nearly 130 basis points (bps) of incremental freight expense and 70 bps of wage costs for fiscal 2023.

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

Other noteworthy reports we are featuring today include Analog Devices, Inc. (ADI), Southern Copper Corp. (SCCO) and Parker-Hannifin Corp. (PH).

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>>>