Today's Must Read
Thermo Fisher (TMO) Thrives on Strong End Market Growth
Liquidity, Investments Drive BHP Group (BHP) Amid Price Woes
Tuesday, August 31, 2021
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 Adobe Inc. (ADBE), Thermo Fisher Scientific Inc. (TMO), and BHP Group (BHP). 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 Adobe have modestly outperformed the Zacks Software industry in the year to date period (+33.1% vs. +32.5%) as the company continues to benefit from strong demand for its cloud products. The company’s Creative Cloud, Document Cloud and Adobe Experience Cloud products have been supporting its top-line growth.
Rising subscription revenues and solid momentum across the mobile apps remain major positives. Growth in emerging markets, robust online video creation demand, strong Acrobat adoption and improving average revenue per user remain tailwinds. Lower end-market demand and high acquisition expenses remain major overhangs though.
Thermo Fisher shares have gained +20.8% over the last six months against the Zacks Medical Instruments industry’s gain of +10.1%. The Zacks analyst believes that it has been expanding its inorganic growth profile on the back of several takeovers.
The company witnessed strong end market growth in the second quarter on the back of robust fundamentals in the life sciences, strong economic activity globally and strong pandemic response. Its second-quarter 2021 COVID-19 response revenues, however, declined to $1.9 billion from the prior quarter’s $2.9 billion. Foreign currency fluctuations and competitive landscape are other major threats to the company.
Shares of BHP Group have lost -13.2% in the past three months against the Zacks Mining - Miscellaneous industry’s loss of -9.9%, however, BHP Group’s fiscal 2021 revenues and underlying attributable profit improved year over year.
The Zacks analyst believes that strong cash generation, investment in growth projects and higher operational efficacy, as well as solid long-term outlook for metal prices bode well for BHP Group. Exit of petroleum business, investment in growth projects and decision to unify its dual-listed structure will aid growth as well. The spread of the Delta variant is likely to play a spoil sport for the company. Higher input costs and the recent drop in iron ore prices also remain concerns.
Other noteworthy reports we are featuring today include Philip Morris International Inc. (PM), Atlassian Corporation Plc (TEAM) and Chubb Limited (CB).
Director of Research
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>>>