Wednesday, April 24, 2024

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 Danaher Corp. (DHR), Regeneron Pharmaceuticals, Inc. (REGN) and Palo Alto Networks, Inc. (PANW). 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 >>>

Danaher’s shares have outperformed the Zacks Diversified Operations industry over the past year (+24.0% vs. +3.4%). The company’s stable demand in the academic and applied markets is supporting its Life Sciences unit. The segment has been witnessing positive responses toward its new products. The company’s commitment to return value to shareholders is encouraging.

Synergies from the Abcam acquisition bolster the company’s growth. Through its DBS initiatives, it has been able to reduce the impact of supply-chain constraints and inflationary pressures. However, Danaher is plagued by weakness in the Biotechnology unit due to decreased demand in the bioprocessing business.

Softness in the funding environment and lower underlying activity levels are affecting the high-growth markets’ performance. High debt levels may raise its financial obligations and drain its profitability. Given its international exposure, forex woes are weighing on its top line.

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

Shares of Regeneron Pharmaceuticals have outperformed the Zacks Medical - Biomedical and Genetics industry over the past year (+14.9% vs. -15.2%). The company maintains momentum due to stellar performance by Dupixent, driven by growing demand in the approved indications of atopic dermatitis, asthma, chronic rhinosinusitis with nasal polyposis, eosinophilic esophagitis and prurigo nodularis.

The approval of Eylea HD is also noteworthy, generating incremental revenues. The approval of Libtayo has diversified the portfolio, and label expansion in additional indications is likely to boost Regeneron’s sales.

However, a decline in Eylea sales due to competition is a woe as the drug is the largest contributor to the top line.  Pipeline and regulatory setbacks are additional headwinds. Earnings estimates are static ahead of the quarterly results.

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

Palo Alto Networks’ shares have gained +60.8% over the past year against the Zacks Internet - Software industry’s gain of +64.5%. The company has been benefiting from continuous deal wins and the increasing adoption of its next-generation security platforms, attributable to the rise in the hybrid work environment and the heightened need for stronger security.

PANW’s strong back-to-back quarterly performances reflect its sustained focus on product innovation, a shift in its business model to subscription-based services, platform integration and continued investments in the go-to-market strategy. The normalization of the supply chain is also aiding growth across the Products, Services and Subscription segments.

However, softening IT spending amid macroeconomic headwinds might hurt its near-term prospects. Forex headwinds and higher marketing and sales expenses are likely to continue hurting its profitability. Also, high acquisition-related expenses are denting margins.

(You can read the full research report on Palo Alto Networks here >>>)

Other noteworthy reports we are featuring today include GSK plc (GSK), Workday, Inc. (WDAY) and American Electric Power Company, Inc. (AEP).



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 Life Sciences Unit Aids Danaher (DHR), High Debt Ails

Dupixent Profits Fuels Regeneron (REGN), Eylea Decline A Woe

Palo Alto (PANW) Rides on Product Strength, Marketing Effort

Featured Reports

GSK (GSK) Vaccine & HIV Products to Drive Sales Growth
GSK's key products like Dovato, Nucala and Shingrix are driving sales. The Zacks analyst says GSK has some promising new products in Specialty Medicines and Vaccines areas like RSV vaccine, Arexvy.

Workday (WDAY) Rides on Portfolio Strength, Cloud-Based Focus
Per the Zacks analyst, Workday is likely to benefit from solid demand for financial and human capital management solutions driven by robust cloud-based business model and expanding product portfolio.

Capex Aids American Electric (AEP) Amid High Interest Costs
Per the Zacks analyst, solid capital expenditure in transmission and distribution should benefit American Electric. Yet, increasing interest expenses might hurt its bottom-line performance

Strong Oncotype Dx Test Adoption Ail Exact Sciences (EXAS)
The Zacks analyst is impressed with Exact Sciences' receiving Oncotype DX orders from more than 120 countries, with 98% of orders from US oncologists during the fourth quarter.

Solid Underwriting Aid RLI Corp (RLI), Higher Expenses Ail
Per the Zacks analyst, RLI's solid portfolio, business expansion, rate rise, expanded distribution and operational strength drive profitability. Yet, high expenses inducing margin contraction concern.

Signet (SIG) to Keep Gaining From Robust E-commerce Sales
Per the Zacks analyst, Signet's e-commerce channel has been gaining from the company's prudent investment in virtual selling. Online revenues are likely to keep growing and support same store sales.

ManpowerGroup (MAN) Gains From Tingari Buyout, Expenses Ail
Per the Zacks Analyst, the acquisition of Tingari will support ManpowerGroup's objective to achieve full employment in France. Rising expenses remain concerning.

New Upgrades

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.

Prudent Asset-Selection Efforts Aid AGNC Investment (AGNC)
Per the Zacks analyst, prudent asset-selection and portfolio-repositioning moves to hedge interest rate risks support AGNC Investment. investments in agency MBS will drive attractive returns.

Sunoco's (SUN) Robust Motor Fuel Distribution Network Aids
Per the Zacks analyst, Sunoco's long-term contracts with convenience stores across the U.S. and its extensive fuel distribution network spanning 40 states should boost the company's bottom line.

New Downgrades

Foot Locker (FL) Continues to Witness Dismal Gross Margin
Per the Zacks analyst, Foot Locker's gross margin is under pressure due to higher markdowns. Gross margin contracted 350 bps year over year in Q4. Elevated SG&A cost is also a headwind.

Sluggish Data Center Market Hurt Advanced Energy (AEIS)
Per the Zacks Analyst, Advanced Energy is suffering from weakness in Industrial & Medical and Data Center Computing end-markets

Alibaba (BABA) Suffers From Sluggish China Commerce Business
Per the Zacks analyst, Alibaba is suffering from weakening market conditions in China, resulting in softness in its China Commerce business.

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Regeneron Pharmaceuticals, Inc. (REGN):Free Stock Analysis Report

GSK PLC Sponsored ADR (GSK):Free Stock Analysis Report

American Electric Power Company, Inc. (AEP):Free Stock Analysis Report

Danaher Corporation (DHR):Free Stock Analysis Report

Palo Alto Networks, Inc. (PANW):Free Stock Analysis Report

Workday, Inc. (WDAY):Free Stock Analysis Report

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