Monday, December 2, 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 Toyota Motor Corp. (TM), RTX Corp. (RTX) and Micron Technology, Inc. (MU). 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 >>>

Toyota’s shares have outperformed the Zacks Automotive – Foreign industry over the past two years (+19.2% vs. +0.6%). The Zacks analyst believes that Toyota is taking strategic steps, including restoring production, optimizing inventory to manage incentives and reducing complexity to streamline operations and improve efficiency. It is also ramping up investment in electrification with solid-state batteries and an expanding lineup.

However, high R&D expenses on advanced technologies and alternative fuels for the development of electric and autonomous vehicles are causing some pain in the near term.

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

RTX’s shares have outperformed the Zacks Aerospace - Defense industry over the past year (+46.6% vs. -3.9%). The Zacks analyst believes that the company continues to receive ample orders for its wide range of combat-proven defense products from the Pentagon and its foreign allies. Improving commercial air traffic has also been bolstering the company.

Yet, rising crude prices tend to put cost pressure on airlines that may impact commercial OEM producers like RTX. The company may also be affected if China enforces its announced sanctions against its missile and defense unit. Supply-chain challenges also pose a threat.

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

Shares of Micron have underperformed the Zacks Computer – Integrated Systems industry over the last six months (-23.6% vs. -0.3%). Per the Zacks analyst, the U.S./China trade war poses a major threat to the company. Also, Micron’s near-term prospects look gloomy as weakening consumer spending is negatively impacting demand for memory chips used in personal computers and smartphones.

However, improved market conditions, strong sales executions, robust growth across multiple business units, positive impact of inventory improvement in the data center and stabilization in other end-markets have benefited the company.

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

Other noteworthy reports we are featuring today include Intercontinental Exchange, Inc. (ICE), Cadence Design Systems, Inc. (CDNS) and Barclays PLC (BCS).

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

Supply Stabilization, Higher AI Spending Aid Micron (MU)

Robust Vehicle Lineup Aids Toyota (TM) Amid High Expenses

RTX Gains From Steady Order Growth, Amid Supply Chain Issues

Featured Reports

Biogen's (BIIB) New Drugs Skyclarys & Others Can Revive Growth
Sales of multiple sclerosis drugs and Spinraza are declining due to competitive pressure. The Zacks analyst believes Biogen's new products like Leqembi, Skyclarys and Zurzuvae can help revive growth.

Buyout Strategy Benefits Interpublic (IPG), Seasonality Ails
Per the Zacks analyst, Interpublic's acquisition strategy enables it to expand its product portfolio and tackle the dynamic market services. Seasonality in business is an overhang.

Cadence (CDNS) Benefits from Diversified Product Portfolio
Per the Zacks analyst, Cadence's performance is gaining from solid demand for the company's diversified product portfolio. Stiff competition and uncertain macroeconomic conditions remain concerns.

Restructuring Efforts Aid Barclays (BCS) Amid Weak Top-Line
Per the Zacks analyst, acquisitions, a solid balance sheet and restructuring efforts to boost efficiency will aid Barclays' financials. Yet, high credit impairment costs and subdued revenues are woes.

Strength in Global Data Services Aid Intercontinental (ICE)
Per the Zacks analyst, Intercontinental is set to grow on solid portfolio, wide range of risk management services, cost synergies and solid capital position. Yet, rising expenses might weigh on margin

Lennar (LEN) Banks on Operating Strategy, Inflation Hurts
Per the Zacks analyst, Lennar is benefiting from its solid operating strategy of focusing on consistent production and sales pace. Yet, higher building materials, land and labor costs are concerning.

Insmed (INSM) Rides on Upbeat Bronchiectasis Drug Study Data
The Zacks Analyst is encouraged by Insmed's recently reported data from a phase III study on brensocatib in treating bronchiectasis. Based on the results, a commercial launch is planned for mid-2025.

New Upgrades

Wolverine's (WWW) Product Initiatives to Boost Market Share
Per the Zacks analyst, Wolverine is actively pursuing a comprehensive strategy to enhance brand portfolio, focusing on Merrell and Saucony brands. These efforts are expected to help gain market share.

Deckers' (DECK) Omni-Channel Efforts Likely to Boost Sales
Per the Zacks analyst, Deckers' focus on expanding brand assortments, bringing an innovative line of products and optimizing omni-channel distribution are likely to propel top line.

First American (FAF) Rides on Buyouts, Financial Flexibility
Per the Zacks analyst, a number of buyouts have helped First American to boost its core business, expand valuation and data business. Moreover, a solid balance sheet provides financial flexibility.

New Downgrades

Rising Jet Fuel Price, Labor Strike to Hurt Boeing (BA)
Per the Zacks analyst, increased jet fuel price can put cost pressure on airlines, which may reduce orders for new jets from Boeing. Labor strikes may hurt the company's future operating results

Liberty Energy (LBRT) Revenue Pressured by Market Softness
The Zacks analyst highlights challenges for Liberty Energy's revenue growth due to ongoing market pressures, including reduced rental rates for fracking schedules and lower completions activity.

Healthcare Industry Regulations Impairs AMN Healthcare (AMN)
The Zacks analyst is worried about AMN Healthcare being subjected to extensive federal laws and regulations. Consolidation of healthcare delivery units is an added concern.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report

Toyota Motor Corporation (TM) : Free Stock Analysis Report

Barclays PLC (BCS) : Free Stock Analysis Report

Micron Technology, Inc. (MU) : Free Stock Analysis Report

Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report

RTX Corporation (RTX) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research