Thursday, February 20, 2025
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 Broadcom Inc. (AVGO), Thermo Fisher Scientific Inc. (TMO) and Aon plc (AON), as well as a micro-cap stock, Massimo Group (MAMO).
These research reports have been hand-picked from roughly 70 reports published by our analyst team today. You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens and attempts to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Steady Jobless Claims, Good Philly Fed, Healthy Q4 Earnings
Today's Featured Research Reports
Broadcom’s shares have outperformed the Zacks Electronics - Semiconductors industry over the past year (+85.3% vs. +47.6%). The Zacks analyst believes that the company is benefiting from strong demand for its networking products and custom AI accelerators (XPUs). Broadcom’s expanding AI portfolio, along with a rich partner base, reflects solid top-line growth potential.
However, a challenging macroeconomic environment and high debt level are major concerns.
(You can read the full research report on Broadcom here >>>)
Thermo Fisher’s shares have underperformed the Zacks Medical – Instruments industry over the past year (-4.0% vs. +4.8%). The Zacks analyst believes that volatile macroeconomic uncertainties can dent Thermo Fisher’s operations. The continuous decline in COVID testing-related demand also adds to the worry.
Yet, the company is braving the ongoing tough economic conditions by utilizing the PPI Business System. Several recent product launches, including a Thermo Scientific Iliad scanning transmission electron microscope and new additions to the Gibco CTS Detachable Dynabeads platform have aided. Its continuous efforts to prioritize its partnership with customers to drive innovation and improve patient care bode well.
(You can read the full research report on Thermo Fisher here >>>)
Shares of Aon have outperformed the Zacks Insurance – Brokerage industry over the past six months (+16.8% vs. +8.4%). Per the Zacks analyst, the company’s bottom line has been growing due to strategic initiatives and strong fundamentals, which have enhanced its capabilities and made it one of the largest insurance brokers.
However, long-term debt has been continuously increasing since 2014. Growing interest expenses are a concern. Its financial results are sensitive to foreign exchange rate fluctuations.
(You can read the full research report on Aon here >>>)
Massimos’ shares have underperformed the Zacks Leisure and Recreation Products industry over the last six months (-10.1% vs. +33.3%). The Zacks analyst believes that the company faces headwinds, including supply chain disruptions due to its reliance on global suppliers, and rising material costs from inflationary pressures. Reliance on a concentrated customer base poses financial risks.
Yet, new product launches, automation investments, and strategic partnerships have benefited the company. Strategic deals with Tractor Supply and Armlogi enhance retail and operational efficiency. Massimo is also entering the EV sector with eco-friendly UTVs and ATVs, aligning with consumer demand for sustainability.
(You can read the full research report on Massimo here >>>)
Other noteworthy reports we are featuring today include Marriott International, Inc. (MAR), Hilton Worldwide Holdings Inc. (HLT) and TC Energy Corp. (TRP).
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>>>
Today's Must Read
Strong Demand for Networking Products Aids Broadcom (AVGO)
End-Market Strength, Olink Buyout Aid Thermo Fisher (TMO)
Aon's (AON) Strategic Acquisitions Aid, Debt Woes Linger
Featured Reports
Investments Aid DTE Energy (DTE) Amid Poor Financial Ratios
Per the Zacks analyst, DTE Energy makes disciplined investment to maintain and upgrade the reliability of its electric utility systems. Yet its poor financial ratios indicate weak solvency position.
EQT's Premium Gas Drilling Locations in the Appalachian Aid
EQT Corporation's untapped premium drilling locations in the core Appalachian Basin secure a robust production outlook. However, its lack of geographical diversity concerns the Zacks analyst.
TC Energy (TRP) to Capitalize on Growing Natural Gas Demand
The Zacks analyst believes that growing natural gas demand driven by LNG exports and data center needs can boost TC Energy's revenue, but, its projected lower 2025 earnings raises concern
United Therapeutics' (UTHR) PAH Portfolio Drives Top Line
The Zacks Analyst believes that demand for United Therapeutics' PAH medicines is strong. Potential approvals for expanded use of Orenitram and Tyvaso and its pipeline can drive long-term growth
Unit Growth Benefits Hilton (HLT), China Performance Hurts
Per the Zacks analyst, Hilton is benefiting from increased leisure, business transient and group travel demand along with its focus on unit expansion and hotel conversion. Yet, softness in China ail.
Solid Expansion Efforts Aid Marriott (MAR), High Debt Ail
Per the Zacks analyst, Marriott benefits from solid leisure demand, solid global booking trends and expansion efforts. However, dismal performance in China and high debt remain a concern.
Lyft (LYFT) Gains From Rideshare Market Amid Rising Expenses
The Zacks Analyst is impressed that an uptick in driver supply boosts Lyft's gross bookings. Escalating operating expenses are likely to hurt the company's bottom line.
New Upgrades
Telephone and Data Systems (TDS) Rides on Solid Broadband Demand
Per the Zacks analyst, solid growth in residential broadband connections will likely boost Telephone and Data Systems' top line. The capital influx from divestitures is fostering network expansion.
Restructuring, Expansion Efforts Aid Hancock Whitney (HWC)
Per the Zacks analyst, business expansion efforts, bond restructuring, solid loan balance, and strong liquidity position alongside relatively high rates will likely aid Hancock Whitney's financials.
Molson Coors (TAP) Sees Strength in Brands & Premiumization
Per the Zacks analyst, Molson Coors boasts a strong portfolio of well-established brands. The company remains committed to expanding its market share through innovation and premiumization.
New Downgrades
Weak NAND Demand Hurts MKS Instruments (MKSI) Prospects
Per the Zacks analyst, MKS Instruments is suffering from ongoing weakness in certain industrial markets, particularly in NAND, and seasonal slowdowns.
Weak Wholesale Footwear Revenues Hurts Steven Madden (SHOO)
Per the Zacks analyst, Steven Madden's wholesale footwear business has been underwhelming. In the third quarter, this segment experienced a 2.2% decline.
Lear Corporation (LEA) Faces Hurdles Amid Weak 2025 Outlook
Per the Zacks analyst, Lear's 2025 outlook remains bleak as lower vehicle production and a concentrated customer base threaten top-line growth, warranting a bearish stance on the stock.
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Marriott International, Inc. (MAR) : Free Stock Analysis Report
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
Aon plc (AON) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
TC Energy Corporation (TRP) : Free Stock Analysis Report
Hilton Worldwide Holdings Inc. (HLT) : Free Stock Analysis Report
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