Thursday, December 21, 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 Alphabet Inc. (GOOGL), Comcast Corp. (CMCSA) and NextEra Energy, Inc. (NEE). 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 >>>

Shares of Alphabet have gained +56.8% over the year-to-date period against the Zacks Internet - Services industry’s gain of +57.5%. The company’s strong cloud division is aiding substantial revenue growth. Moreover, expanding data centers will continue to bolster its presence in the cloud space.

Further, major updates in its search segment are enhancing results in that space. Also, a strong focus on innovation of AI techniques and the home automation space should aid business growth in the long term. Further, its deepening focus on wearables category remains a tailwind.

Alphabet’s expanding presence in the autonomous driving space is contributing well. Its growing efforts to gain foothold in the healthcare industry are other positives. However, sluggishness in the company’s Network advertisement business remains a headwind. Additionally, its growing litigation issues and increasing expenses are concerns.

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

Comcast’s shares have outperformed the Zacks Cable Television industry over the year-to-date period (+30.1% vs. +16.1%). The company is benefiting from a growing wireless subscriber base as witnessed in the third quarter. Broadband user base increased in the reported quarter.

Comcast’s plan to transition to DOCSIS 4.0 is noteworthy. The technology will help the company expand much faster and at a lower cost compared with competitors. Recovery in the park and movie business bodes well for the company’s profitability. Its streaming service,

Peacock, is a key catalyst in driving broadband sales. Strong free cash flow generation ability is noteworthy. However, the company persistently suffers from video-subscriber attrition due to cord-cutting. Moreover, broadband prospects are suffering from increasing competition from fixed wireless as well as fiber. Additionally, a leveraged balance sheet is a major concern.

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

Shares of NextEra Energy have underperformed the Zacks Utility - Electric Power industry over the year-to-date period (-26.4% vs. -8.9%). Due to the nature of its business, the company is subject to complex regulations. Risks in operating nuclear units, unfavorable weather conditions and increasing supply costs adversely impact earnings.

Nevertheless, NextEra Energy continues to expand its operations through organic projects and acquisitions. The company has many renewable projects in its backlog and continues to enhance its renewable energy generation capacity. NextEra’s subsidiary FPL’s customer base is expanding as Florida’s economy improves.

The company has ample liquidity to meet its near-term debt obligations. It is expanding its operations in the water space through acquisitions. NextEra Energy decided to sell its gas assets in Florida to focus on its core business.

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

Other noteworthy reports we are featuring today include Sanofi (SNY), Vertex Pharmaceuticals Inc. (VRTX) and Eni S.p.A. (E).

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>>>