Thursday, March 9, 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 Enbridge Inc. (ENB), U.S. Bancorp (USB) and HCA Healthcare, Inc. (HCA). 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 Enbridge have underperformed the Zacks Oil and Gas - Production and Pipelines industry over the past year (-13.6% vs. -4.6%). The company’s significant debt exposure is concerning.

ENB reported weak fourth-quarter results due to lower contributions from the Renewable Power Generation segment. Also, it has mostly been yielding lower dividends than the industry. As such, the stock warrants a cautious stance.

However, Enbridge has the longest and most sophisticated oil and liquids pipeline system in the world, which spreads across 17,809 miles. Hence, a significant portion of the midstream operator’s earnings is generated from transportation operations, driven by a string of long-term contracts.

ENB sanctioned C$8 billion of organic growth projects in 2022, bringing its total backlog to C$18 billion. The firm expects to put more than C$10 billion growth projects into service in 2024 and beyond. This is expected to generate significant EBITDA growth in the coming years.

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

Shares of U.S. Bancorp have underperformed the Zacks Banks - Major Regional industry over the past year (-14.2% vs. -9.6%). The company’s rising expenses might weigh on its bottom line in the upcoming quarters. Further, a concentrated loan portfolio and legal hassles are other key headwinds.

Nevertheless, U.S. Bancorp third-quarter results reflect a rise in revenues, supported by higher interest rates and margins. The bank has received all required regulatory approvals for the acquisition of MUFG Union Bank’s core regional banking franchise.

A solid business model and diverse revenue streams are likely to aid its financials. The company’s strong loan and deposit balances are positives. Its decent liquidity position is likely to support capital-deployment plans.

(You can read the full research report on U.S. Bankcorp here >>>)

HCA Healthcare’s shares have outperformed the Zacks Medical - Hospital industry over the past six months (+13.1% vs. +8.7%). The company’s revenues remain on an uptick on the back of a surge in admissions, outpatient surgeries and other procedures.

Multiple buyouts aided it in increasing patient volumes, enabled network expansion, added hospitals to its portfolio and boosted business scale. The company has been gaining from its telemedicine business line. As of Dec 31, 2022, it had $1.6 billion left under its buyback authorization.

However, the company's escalating operating expenses have been weighing on the margins. Declining cash flows indicates weaknesses in operations. As such, the stock warrants a cautious stance.

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

Other noteworthy reports we are featuring today include The Hershey Company (HSY), American International Group, Inc. (AIG) and PACCAR Inc (PCAR).

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>>>