Yahoo Finance Top Stock Reports for Enbridge, U.S. Bancorp & HCA Healthcare
Thursday, March 9, 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 Enbridge Inc. (ENB), U.S. Bancorp (USB) 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 >>>
Shares of Enbridge have underperformed the Zacks Oil and Gas - Production and Pipelines industry over the past year (-13.6% vs. -4.6%). The company’s significant debt exposure is concerning.
ENB reported weak fourth-quarter results due to lower contributions from the Renewable Power Generation segment. Also, it has mostly been yielding lower dividends than the industry. As such, the stock warrants a cautious stance.
However, Enbridge has the longest and most sophisticated oil and liquids pipeline system in the world, which spreads across 17,809 miles. Hence, a significant portion of the midstream operator’s earnings is generated from transportation operations, driven by a string of long-term contracts.
ENB sanctioned C$8 billion of organic growth projects in 2022, bringing its total backlog to C$18 billion. The firm expects to put more than C$10 billion growth projects into service in 2024 and beyond. This is expected to generate significant EBITDA growth in the coming years.
(You can read the full research report on Enbridge here >>>)
Shares of U.S. Bancorp have underperformed the Zacks Banks - Major Regional industry over the past year (-14.2% vs. -9.6%). The company’s rising expenses might weigh on its bottom line in the upcoming quarters. Further, a concentrated loan portfolio and legal hassles are other key headwinds.
Nevertheless, U.S. Bancorp third-quarter results reflect a rise in revenues, supported by higher interest rates and margins. The bank has received all required regulatory approvals for the acquisition of MUFG Union Bank’s core regional banking franchise.
A solid business model and diverse revenue streams are likely to aid its financials. The company’s strong loan and deposit balances are positives. Its decent liquidity position is likely to support capital-deployment plans.
(You can read the full research report on U.S. Bankcorp here >>>)
HCA Healthcare’s shares have outperformed the Zacks Medical - Hospital industry over the past six months (+13.1% vs. +8.7%). The company’s revenues remain on an uptick on the back of a surge in admissions, outpatient surgeries and other procedures.
Multiple buyouts aided it in increasing patient volumes, enabled network expansion, added hospitals to its portfolio and boosted business scale. The company has been gaining from its telemedicine business line. As of Dec 31, 2022, it had $1.6 billion left under its buyback authorization.
However, the company's escalating operating expenses have been weighing on the margins. Declining cash flows indicates weaknesses in operations. 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 The Hershey Company (HSY), American International Group, Inc. (AIG) and PACCAR Inc (PCAR).
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
Enbridge (ENB) to Gain From $8B Midstream Growth Projects
Strategic Buyouts Aid U.S. Bancorp (USB), Cost Woes Remain
Improving Top Line, Acquisitions Aid HCA Healthcare (HCA)
Featured Reports
AIG Benefits From Strong Commercial Business, High Costs Hurt
Per the Zacks analyst, rate increases and new business growth aids its Commercial lines growth. However, elevated expenses might strain margins.
PACCAR's (PCAR) Next-Gen Vehicle Offerings to Boost Sales
While the Zacks analyst is optimistic of PACCAR's innovative technologies and accelerated efforts toward electrification and connected vehicle services, high capex needs might play spoilsport.
eBay (EBAY) Benefits from Strength in Advertising Business
Per the Zacks analyst, growing momentum across eBay's first-party advertising products on the back of its strong Promoted Listings, is driving growth in its advertising business.
Product Launches Aid Catalent (CTLT) Amid Stiff Competition
The Zacks analyst is upbeat about Catalent actively launching products and services over the past few months despite its operation in a highly competitive market.
Infrastructural Moves Aid AECOM (ACM) Amid Uncertainties
Per the Zacks analyst, AECOM banks on robust backlog, domestic infrastructural efforts, digital initiatives and growing global footprint. However, economic downturns hurt.
Solid Demand for Grocery-Anchored Assets Aids Regency (REG)
Per the Zacks Analyst, Regency to benefit from solid retail demand for its premium portfolio of grocery-anchored shopping centers. However, e-commerce adoption and higher interest rates are worrisome.
Maturing Markets and Competition Hurts Liberty Global (LBTYA)
Per the Zacks analyst, Liberty Global's top line is weighed down by the maturing Western European operations, which account for a majority of the company's total revenues besides rising competition.
New Upgrades
Hershey (HSY) Benefits From Prudent Buyouts & Solid Pricing
Per the Zacks analyst, contributions from buyouts and higher prices are driving growth for Hershey. In the fourth quarter, net sales included a 3.6-point benefit from the Pretzels and Dot's buyouts.
Strong Pricing Actions Aids Post Holdings, Inc (POST).
Per the Zacks analyst, Post Holdings, Inc.'s sales are benefiting from pricing actions in every segment. The company's sales increased 17.1% in first quarter of fiscal 2023
Rosy Demand Scenario & Expansion Initiatives Aid ICF (ICFI)
The Zacks analyst is positive about the increased demand for ICF's advisory services. Also, focus on expansion of its commercial businesses is a tailwind.
New Downgrades
Cogent (CCOI) Plagued by High Infrastructure Operating Costs
Per the Zacks analyst, Cogent is likely to be plagued by high operating costs to maintain its network infrastructure, while stiff competition and multiple disruptions erode its profitability.
High Infrastructure Investments Mar CommScope (COMM) Margins
Per the Zacks analyst, CommScope is likely to be weighed down by high infrastructure investments for adequate rural coverage and wireless densification, eroding its short-term profitability.
High Inflation & Challenging Toy Market Hurt Hasbro (HAS)
Per the Zacks analyst, increased inflationary pressures, challenging toy market demand and price sensitivity among customers impact Hasbro's growth prospects.
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American International Group, Inc. (AIG) : Free Stock Analysis Report
Hershey Company (The) (HSY) : Free Stock Analysis Report
U.S. Bancorp (USB) : Free Stock Analysis Report
PACCAR Inc. (PCAR) : Free Stock Analysis Report
Enbridge Inc (ENB) : Free Stock Analysis Report
HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report
