Monday, October 2, 2023

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Intel Corporation (INTC), Anheuser-Busch InBev SA/NV (BUD) 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 >>>

Intel shares have lagged the Zacks Zacks Semiconductor industry this year (+35.7% vs. +69.1%), but they have handily outperformed the broader (+35.7% vs. +12.9% for the S&P 500 index). The company is focusing on establishing an advanced semiconductor manufacturing ecosystem and has expanded its production capabilities in Germany and Poland under its IDM 2.0 (integrated device manufacturing) strategy.

A concerted focus on increasing market diversification and healthy momentum in data center business are tailwinds. Intel is also expanding its foundry services through partnership with Tower Semiconductor. The launch of its glass substrates for advanced packaging of chips is another positive.

However, contraction in the total addressable market across all CPU market segments is a major headwind. Weak demand trends and sluggish recovery in China are hurting sales in Network and Edge Group. Macroeconomic challenges, inventory adjustments and intense market volatility are straining margins.

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

Shares of Anheuser-Busch have outperformed the Zacks Beverages - Alcohol industry over the past year (+17.9% vs. -4.1%). The company has been benefiting from continued consumer demand for its brand portfolio. The company’s relentless execution, investment in brands and accelerated digital transformation aided top-line growth in second-quarter 2023.

The top line also benefited from strength of the beer category globally. The expansion of the Beyond Beer portfolio, and investments in B2B platforms, e-commerce and digital marketing bode well. For 2023, AB InBev expects EBITDA growth of 4-8%, in line with our estimate of 4%. It anticipates revenue growth to be higher than EBITDA growth, compared to our estimate 6% growth.

However, shares of AB InBev lagged the industry year to date. The stock came under pressure due to dismal earnings in the second quarter. AB InBev’s EBIT margin declined in the second-quarter, driven by higher cost of sales and SG&A expenses.

(You can read the full research report on Anheuser-Busch here >>>)

HCA Healthcare shares have outperformed the Zacks Medical - Hospital industry over the past year (+28.4% vs. +23.7%). The company’s revenues remain on an uptick on the back of a surge in admissions, outpatient surgeries and other procedures. Significant growth in its Managed Medicare operations is expected to drive its performance.

Multiple buyouts aided it in increasing patient volumes, enabled network expansion and added hospitals to its portfolio. It has been gaining from its telemedicine business line on the back of the rising digitization trend. HCA Healthcare resorts to prudent capital deployment via share buybacks and dividend payments.

However, the company's escalating operating expenses have been weighing on the margins. A high debt level induces rise in interest expenses. 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 Exelon Corporation (EXC), Moderna, Inc. (MRNA) and DuPont de Nemours, Inc. (DD).

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>>>