Today's Must Read
Thermo Fisher (TMO) Grows Internationally Amid Forex Woes
Shell (RDS.A) Aided by LNG Demand Amid Production Woes
Monday, September 20, 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 Apple Inc. (AAPL), Thermo Fisher Scientific Inc. (TMO), and Royal Dutch Shell plc (RDS.A). 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 Apple have modestly underperformed the S&P 500 over the past year (+33.5% vs. +38.9%), but things have been improving for the tech giant lately. The Zacks analyst believes that the company has been benefiting from momentum in the Services business, strong adoption of Apple Pay and growing Apple Music subscriber base.
Apple’s near-term prospects remain bright and are driven by new iPhones that support 5G, revamped iPad and Mac line-up of devices, as well as an expanding App Store ecosystem. The company’s ability to attract small developers has been a key catalyst. Foreign exchange woes, lower than expected growth in the Services segment and supply constraints have been limiting the company’s growth though.
Thermo Fisher shares have gained +31.4% in the last six months against the Zacks Medical Instruments industry’s gain of +16.6%. The Zacks analyst believes that several takeovers such as the Advanced Bioprocessing buyout from BD and Patheon have been expanding the company’s growth profile.
Thermo Fisher experienced strong end market growth in the second quarter, driven by robust fundamentals in the life sciences, and strong pandemic response. The company also raised 2021 guidance, which buoys optimism. Unfavorable macroeconomic conditions, a competitive landscape and currency fluctuations remain major headwinds though.
Shares of Royal Dutch Shell have gained +0.9% in the past three months against the Zacks International Integrated Oil industry’s fall of -2.8%. The Zacks analyst believes that Royal Dutch Shell is poised for capital appreciation based on a slew of tailwinds. The BG acquisition has made Shell the largest liquefied natural gas producer in the world.
Shell’s announcement of the launch of a $2 billion stock buyback program reflects its steadily improving earnings. It is also making solid progress toward the transition to a renewable energy-focused future. The company is, however, facing some headwinds on the production front, which is evident from the amount of hydrocarbon it pumped in the first half. Its dismal reserve replacement ratio might restrict its production growth potential.
Other noteworthy reports we are featuring today include Microsoft Corporation (MSFT), QUALCOMM Incorporated (QCOM) and The Estée Lauder Companies Inc. (EL).
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>>>