Friday, September 1, 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 Comcast Corporation (CMCSA), Linde plc (LIN) and Marsh & McLennan Companies, Inc. (MMC). 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 >>>

Comcast shares have outperformed the Zacks Cable Television industry over the year-to-date period (+36.7% vs. +24.1%). The company is benefiting from a growing wireless subscriber base as witnessed in the second quarter of 2023. The technology will help it in expanding much faster and at a lower cost compared to competitors.

Recovery in park and movie business bodes well for Comcast’s profitability. Its streaming service Peacock is a key catalyst in driving broadband sales. Strong free cash flow generation ability is noteworthy.

However, Comcast persistently suffers from video-subscriber attrition due to cord cutting. Moreover, broadband prospects are suffering from increased competition from fixed wireless as well as fiber. Additionally, a leveraged balance sheet is a major concern.

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

Shares of Linde have outperformed the Zacks Chemical - Specialty industry over the year-to-date (+19.5% vs. +11.3%). With a wide range of applications for its industrial gases, Linde is making the world more productive by the day. The company’s primary products in industrial gases include oxygen, which is used as life support in hospitals.

Linde has long-term contracts with on-site customers backed by minimum purchase requirements, thereby securing stable cashflows. In the profitable industrial gas market, the merger of Praxair and Linde has created an efficient player with considerable size advantages. Linde reported strong second quarter earnings aided by higher pricing from its Americas segment.

However, increasing competition for new projects and developments in emerging markets is concerning. The firm is extremely vulnerable to uncertainty associated with the slowdown of economic growth, as this could hurt demand for its industrial gases.

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

Marsh & McLennan’s shares have outperformed the Zacks Insurance - Brokerage industry over the year-to-date period (+19.1% vs. +14.4%). The company is well-poised to grow on the back of acquisitions made within its operating units, the launch of new products and branching out into new businesses.

Revenues have been increasing thanks to a wide geographic presence and strong client retention. The Risk and Insurance Services unit has been contributing to revenue growth for a while. Solid cash flows enable business investments. MMC had around $3.7 billion left under authorization as of Jun 30, 2023.

However, escalating operating costs might weigh on the margins. The metric jumped 6.1% y/y in 1H23. A debt-laden balance sheet is a concern. Its valuation remains stretched at the current level. As such, the stock warrants a cautious stance.

(You can read the full research report on Marsh & McLennan here >>>)

Other noteworthy reports we are featuring today Alphabet Inc. (GOOGL), UBS Group AG (UBS) and Motorola Solutions, Inc. (MSI).

Director of Research

Sheraz Mian

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>>>