Today's Must Read
NextEra (NEE) Gains from Steady Investment, Renewable Focus
Sanofi (SNY) Relies on Dupixent and Vaccines to Drive Growth
Wednesday, May 31, 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 Fomento Económico Mexicano, S.A.B. de C.V. (FMX), NextEra Energy, Inc. (NEE) and Sanofi (SNY). 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 Fomento Económico Mexicano (aka FEMSA) have outperformed the Zacks Beverages - Soft drinks industry over the past year (+33.6% vs. +10.3%). The company is witnessing continued strength at OXXO Mexico, driven by solid traffic, led to a double-digit same-store sales increase. Also, OXXO Gas performed well owing to increased volume recovery and strong operating leverage.
The company’s digital initiatives and business expansion endeavors have also been aiding results. Its efforts to expand in the U.S. specialized distribution segment bodes well.
The company displays strong financial flexibility. However, FEMSA continued to witness gross margin declines due to inflationary pressures.
(You can read the full research report on Formento Economico Mexicano here >>>)
Shares of NextEra Energy have declined -2.4% over the past year against the Zacks Utility - Electric Power industry’s decline of -14.3%. The company’s nature of business is subject to complex regulations. Risks in operating nuclear units, unfavorable weather conditions and an increase in supply costs adversely impact earnings.
Nevertheless, NextEra Energy continues to expand its operations through organic projects and strategic acquisitions. NextEra has many renewable projects in its backlog and their completion will reduce emissions. The merger of Gulf Power and FPL strengthens NextEra’s position in Florida.
FPL’s customer base is expanding as Florida’s economy improves and continues to boost demand for its services. NextEra has ample liquidity to meet its near-term debt obligations and efficient debt management acts as a tailwind. NEE is expanding its operation in water space through acquisition.
(You can read the full research report on NextEra Energy here >>>)
Sanofi’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past six months (+13.0% vs. +0.5%). The company’s Specialty Care unit is on a strong footing, particularly with the regular label expansion of Dupixent, which has become the key top-line driver for Sanofi.
With outside U.S. revenues accelerating and multiple approvals for new indications, its sales are expected to be higher. Sanofi possesses a leading vaccine portfolio, which has become the primary top-line driver. Its R&D pipeline is strong. Several data readouts are expected in 2023.
The company has also launched several new drugs in the past couple of years and is expanding its pipeline through M&A deals. However, headwinds include the weak performance of diabetes drugs and recent negative pipeline developments.
(You can read the full research report on Sanofi here >>>)
Other noteworthy reports we are featuring today include NVIDIA Corp. (NVDA), Gilead Sciences, Inc. (GILD) and Enbridge Inc. (ENB).
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>>>