Thursday, August 17, 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 Accenture plc (ACN), Elevance Health, Inc. (ELV) and Analog Devices, Inc. (ADI). 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 >>>

Accenture shares have performed roughly in-line with the Zacks Consulting Services industry as well as the broader market over the year-to-date period (+15.4% vs. +15.1% vs. +16.1% for the S&P 500 index). The company has been steadily gaining traction in its outsourcing and consulting businesses backed by high demand for services that can improve operating efficiencies and save costs.

Accenture has been strategically enhancing its cloud and digital marketing suite through buyouts and partnerships. The company’s strong operating cash flow has helped it reward its shareholders in the form of dividend payments and share repurchases, and pursue opportunities in areas that show true potential. Partly due to these tailwinds,

However, on the flip side, pricing pressure due to significant competition from strong companies like Genpact, Cognizant and Infosys, remains a concern. Global presence exposes it to foreign currency exchange rate fluctuations. Buyout-related integration risks continues to remain a concern.

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

Shares of Elevance Health have declined -4.3% over the past year against the Zacks Medical Services industry’s decline of -15.3%. The company's rising expenses continue to put pressure on margins. Our estimate for the 2023 cost of products sold indicates a nearly 12% year-over-year jump. It expects cash flow to decline this year.

Its balance sheet with a rising debt level can affect financial flexibility. As such, the stock warrants a cautious stance. Nevertheless, Elevance Health's improving top line can be attributed to premium rate increases and higher memberships. Acquisitions and collaborations have enabled the firm to strengthen its business portfolio.

The company’s well-performing Medicare and Medicaid businesses, coupled with several contract wins, are expected to drive its membership going ahead. The company's growing Carelon business is a major positive. It utilizes excess capital to boost shareholder value.

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

Shares of Analog Devices have gained +6.4% over the past year against the Zacks Semiconductor - Analog and Mixed industry’s gain of +7.3%. The company is riding on the strength across industrial and automotive markets. Solid demand for high-performance analog as well as mixed signal solutions is a tailwind.

Strong momentum across electric vehicle space on the back of its robust Battery Management System solutions is a positive. Increasing power design wins are other positives. Solid momentum of HEV platform across cabin electronics ecosystem is a tailwind. The company also remains optimistic about the growth prospects related to 5G.

However, weak momentum across major applications and leveraged balance sheet are concerns. Softness in communications and consumer markets is an overhang.

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

Other noteworthy reports we are featuring today include Monster Beverage Corporation (MNST), L3Harris Technologies, Inc. (LHX) and West Pharmaceutical Services, Inc. (WST).

Director of Research

Sheraz Mian

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>>>