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Research Daily

Sheraz Mian

Top Stock Reports for PepsiCo, Thermo Fisher Scientific & Canadian National Railway


Trades from $3

Friday, October 7, 2022

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 PepsiCo, Inc. (PEP), Thermo Fisher Scientific Inc. (TMO) and Canadian National Railway Company (CNI). 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 >>>

PepsiCo shares have handily outperformed the S&P 500 index this year (-6.9% vs. -22%), though they have done only modestly better than rival Coke's -7.6% decline. We will see if performance momentum can be sustained following the company's quarterly results next week.

PepsiCo benefits from the resilience and strength of global beverage and convenient food businesses. It expects to benefit by delivering convenience, variety and value proposition to customers through its brands. It raised its revenue view for 2022.

However, it witnessed margin pressures in the second quarter driven by impacts of supply-chain disruptions and inflationary labor, transportation and commodity costs. PEP anticipates incremental input cost inflation for the balance of 2022. Adverse currency rates also remain headwinds.

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

Thermo Fisher Scientific's shares have declined -7.3% over the past year against the Zacks Medical - Instruments industry’s decline of -32.0%, with the improved performance reflecting favorable outlook for the Analytical Instruments, Laboratory Products and Biopharma Services business lines. The company’s strategic acquisitions of PPD, Inc. and PeproTech raise investors’ confidence.

Thermo Fisher’s accelerated investments to expand bioproduction capacity also buoy optimism. The upbeat guidance for 2022 is indicative that this growth momentum will continue.

(You can read the full research report on Thermo Fisher Scientific here >>>)

Canadian National Railway's shares have declined -4.0% over the past year against the Zacks Transportation - Rail industry’s decline of -9.1%. The company is facing supply chain disruptions, network fluidity challenges and weak Canadian grain crops are hurting the company’s volumes. Escalating fuel prices amid the Russia-Ukraine war pose a threat to Canadian National's bottom line. The company’s weak liquidity position is an added concern.

However, In January, Canadian National Railway has announced a 19% dividend hike. Canadian National is also active on the share buyback front. Strong cash flow generating-ability supports Canadian National's shareholder-friendly activities.

The company is benefiting from strong freight demand and solid pricing. With this, management expects adjusted earnings to increase 15-20% year over year in the current year.

(You can read the full research report on Canadian National Railway here >>>)

Other noteworthy reports we are featuring today include Occidental Petroleum Corporation (OXY), CME Group Inc. (CME), and Truist Financial Corporation (TFC).

Sheraz Mian
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>>>

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