Wednesday, October 25, 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 Netflix, Inc. (NFLX), Honeywell International Inc. (HON) and RTX Corp. (RTX). 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 >>>

Netflix shares have outperformed the Zacks Broadcast Radio and Television industry over the year-to-date period (+41.1% vs. +17.4%). The company added 1.88 million paid subscribers globally in third-quarter 2023 compared with 1.43 million paid subscribers added in the year-ago quarter.

Netflix continues to dominate the streaming space, courtesy of its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized and foreign-language content. Crackdown on password-sharing and the introduction of paid sharing in more than 100 countries, is also expected to aid growth.

The average revenue per membership declined as Netflix continues to face stiff competition in the streaming space from the likes of Apple, Amazon Prime Video, Disney+, Peacock and Paramount+. Netflix’s leveraged balance sheet and higher streaming obligation are also concerns.

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

Shares of Honeywell International have underperformed the Diversified Operations industry over the past year (-3.7% vs. -0.1%). The company is witnessing supply-chain issues. Weakness in the Safety and Productivity Solutions unit due to lower warehouse, and workflow and productivity solutions volumes is worrisome. Raw material cost inflation and adverse foreign currency movements are other concerns.

Nevertheless, Recovery in commercial flight hours, strength in process solutions and UOP businesses augur well for Honeywell. Solid operational execution, pricing actions and cost-control measures continue to drive the company’s top line. HON’s bullish forecast for 2023 holds promise.

Handsome rewards to shareholders add to the stock’s appeal. HON’s recent acquisition of Compressor Controls enhances its expertise in industrial control, automation and process solutions.

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

Shares of RTX have underperformed the Aerospace - Defense industry over the year-to-date period (-20.4% vs. -14.7%). The appreciating U.S. dollar has been burdening airlines, which may hurt the stock. Also, removals and inspections of engines from A32neo might increase costs for RTX. It may also be affected if China enforces its announced sanctions against RTX’s missile and defense unit.

Nevertheless, thanks to its wide range of combat-proven defense products, RTX continues to receive ample orders from the Pentagon and its foreign allies, which, in turn, bolsters its backlog count.

A steady recovery in commercial air traffic is boosting commercial OEM as well as commercial aftermarket sales for RTX. The stock holds a solid solvency position.

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

Other noteworthy reports we are featuring today include Medtronic plc (MDT), Marsh & McLennan Companies, Inc. (MMC) and Eaton Corp. plc (ETN).

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>>>