Friday, October 21, 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 AstraZeneca PLC (AZN), Caterpillar Inc. (CAT) and Crown Castle Inc. (CCI). 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 AstraZeneca have underperformed against the Zacks Large Cap Pharmaceuticals industry over the past year (-12.0% vs. +4.6%). The company’s diabetes franchise faces stiff competition while pricing pressure is hurting sales in the respiratory unit. Sales of some cancer medicines are being hurt due to COVID-19. Sales are slowing down in key market, China, due to pricing pressure.

Estimates have gone up slightly ahead of the Q3 earnings release on November 10th. The company has a mixed record of earnings surprises in the recent quarters. However, AstraZeneca’s cancer medicines, Lynparza, Tagrisso and Imfinzi should keep driving revenues.

AstraZeneca has been engaged in external acquisitions and strategic collaborations to boost its pipeline while investing in geographic areas of high growth like emerging markets. The Alexion buyout strengthens its immunology franchise, adding several drugs that can boost its top line.

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

Caterpillar shares have declined -9.3% over the past year against the Zacks Manufacturing - Construction and Mining industry’s decline of -11.7%. The company is facing issues like ongoing supply chain snarls and cost pressures. Nevertheless, its revenues and earnings grew year over year for six straight quarters thanks to its cost-saving actions, strong end-market demand and pricing actions.

The Zacks analyst expect the company’s adjusted earnings per share for 2022 to grow 11.6%, while revenues are predicted to rise 11.2%. The Construction Industries segment is expected to benefit from the rising construction activities in the United States and other parts of the world.

Backed by demand for commodities fueled by the energy-transition trend, a thriving mining sector will aid the Resource Industries segment. Its dividend yield and payout ratio are higher than its peers. A strong liquidity position, investments in expanding services and digital initiatives will help Caterpillar deliver outsized returns.

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

Crown Castle shares have underperformed against the Zacks REIT and Equity Trust - Other industry over the past year (-29.7% vs. -28.0%). The consolidation in the wireless industry will likely affect the company’s top line while higher interest rates are expected to add to expenses and make borrowings to fund development costlier. Also, customer concentration is a woe.

However, given the increase in mobile data usage, spectrum availability and high network investments by wireless carriers to deploy 5G networks, Crown Castle is poised to gain from this upbeat trend in the upcoming period.

Its efforts to double small-cell deployments in 2023 will likely act as a tailwind. The company hiked its quarterly dividend payment by 6.5% on the back of expected strong cashflows.

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

Other noteworthy reports we are featuring today include Cheniere Energy, Inc. (LNG), Nasdaq, Inc. (NDAQ), and American Water Works Company, Inc. (AWK).

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>>>