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Research Daily

Thursday, September 7, 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 Humana Inc. (HUM), Cintas Corp. (CTAS) and Biogen Inc. (BIIB). 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 Humana have declined -8.9% over the year-to-date period against the Medical - HMOs industry’s decline of -10.8%. The companies escalating operating costs are affecting profits. A debt-laden balance sheet induces a rise in interest expenses. As such, the stock warrants a cautious stance.

Nevertheless, Humana's Medicaid business benefits from several contract wins and renewals thereby contributing to top line. Strategic buyouts and alliances place it well for growth in the future.

Solid contributions from the Insurance and CenterWell segments bode well. Management estimates adjusted 2023 EPS to be at least $28.25, reflecting minimum growth of 12% year over year. It has been deploying excess capital through share buybacks and dividend payments on balance sheet strength.

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

Cintas’ shares have outperformed the Zacks Uniform and Related industry over the year-to-date period (+10.6% vs. +9.2%). Strong segmental performances have been aiding the company. Increased productivity level and new product launches are boosting the Uniform Rental and Facility Services segment’s performances.

Strength in the health and wellness businesses and high customer retention levels are driving the growth of the First Aid and Safety Services segment. The company's focus on enhancement of its product portfolio holds promise. Cintas’ efforts to reward shareholders are impressive.

However, the rising cost of sales, and increasing selling and administrative expenses pose a threat to the company’s bottom line. High tax rate is an added concern for Cintas. Also, foreign currency headwinds are weighing on the company's top line.

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

Shares of Biogen have outperformed the Zacks Medical - Biomedical and Genetics industry over the past year (+26.8% vs. -10.8%). The company’s potential new products like Leqembi in Alzheimer’s disease, Qalsody in ALS and zuranolone in depression can help revive growth. With Leqembi receiving traditional approval and broader CMS coverage in the United States, it has the potential to generate blockbuster sales.

Biogen is exploring both early to mid-stage assets and late-stage assets to build its pipeline. However, Biogen’s has a high-risk pipeline. Sales of Leqembi are expected to be slow in 2023.  

It is also facing multiple challenges at present like the generic erosion of Tecfidera, competitive pressure for Spinraza, declining profit share of Rituxan in the United States and the failure of Aduhelm. Most of its key drugs are facing declining sales.

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

Other noteworthy reports we are featuring today include American Water Works Company, Inc. (AWK), Royal Caribbean Cruises Ltd. (RCL) and Markel Group Inc. (MKL).

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>>>

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