Wednesday, December 11, 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 Netflix, Inc. (NFLX), BP p.l.c. (BP) and Constellation Energy Corp. (CEG), as well as two micro-cap stocks, Tucows Inc. (TCX) and Bridger Aerospace Group Holdings, Inc. (BAER). 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 >>>

Netflix’s shares have outperformed the Zacks Broadcast Radio and Television industry over the past year (+97.3% vs. +61.5%). The Zacks analyst believes that Netflix is benefiting from its growing subscriber base, thanks to a robust content portfolio and healthy engagement levels with about two hours of viewing per member per day, indicating strong member retention. The planned launch of an in-house ad tech platform in 2025 also bodes well.

However, stiff competition in the streaming space from the likes of Apple, Amazon Prime Video and Disney+ is a headwind.

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

BP’s shares have underperformed the Zacks Oil and Gas – Integrated - International industry over the past year (-13.4% vs. +8.5%). The Zacks analyst believes that BP's high debt-to-capital ratio and recent asset impairments reflect balance sheet vulnerabilities. Refining margins face pressure, signaling possible profit declines in BP’s downstream segment.

Yet, the company’s robust upstream portfolio is primed for growth, with new projects like Seagull and Coconut set to boost production. BP’s recent acquisition of Lightsource BP underscores its renewable energy expansion, ensuring resilience as energy transitions accelerate.

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

Shares of Constellation Energy have outperformed the Zacks  Alternative Energy - Other industry over the past year (+102.9% vs. +62.0%). Per the Zacks analyst, the company’s strategic investment plans and its focus on continuing to expand its renewable portfolio drive its earnings performance. It expects to increase nuclear output and implement plans to upgrade plants to achieve more output with no incremental operation and maintenance (O&M) expenses.

However, Constellation Energy is subject to risks related to non-performance by its suppliers and fluctuation in weather conditions. The company’s retail business is subject to strong competition. The supply markets for nuclear fuel, natural gas and oil are subject to price fluctuations.

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

Tucows’shares have underperformed the Zacks Internet - Content industry over the last six months (-14.2% vs. +1.5%). The Zacks analyst believes that rising debt and liquidity concerns due to declining cash raise risks for the company. Depreciation costs and challenges in customer acquisition add pressure as Ting competes with larger ISPs. Continued pressure in this stable business could affect the overall performance. Slower fiber network expansion and increasing competition can hinder growth.

Yet, Tucows' Ting fiber internet service continues to see strong subscriber growth. The company witnessed cost management and efficiency gains and completed a major asset-backed securitization, helping fund its fiber expansion while reducing capital risk.

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

Bridger’s shares have underperformed the Zacks Aerospace - Defense industry over the last six months (-57.9% vs. -8.5%). The Zacks analyst believes that high leverage and debt servicing pressures, seasonal revenue dependence, ongoing losses and execution risks in international expansion pose significant challenges.

Yet, the company's fleet, including CL-415EAF "Super Scoopers" and advanced surveillance aircraft, secures its strong market position and ensures a stable income. The acquisition of FMS Aerospace aids. The expansion into international markets also offers growth potential.

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

Other noteworthy reports we are featuring today include Tesla, Inc. (TSLA), GSK plc (GSK) and The Travelers Companies, Inc. (TRV).

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

Subscriber Addition, Content Strength Drives Netflix (NFLX)

BP's Robust Upstream Portfolio To Boost Production Capacity

Strong Nuclear Fleet, Investments Aid Constellation (CEG)

Featured Reports

GSK (GSK) Specialty Medicines Unit Strong; Vaccines Weak
GSK is witnessing increased sales growth of the Specialty Medicines unit. However, slowing sales in the Vaccines unit concerns the Zacks analyst

Ross Stores' (ROST) Expansion & Other Plans Seem Encouraging
Per the Zacks analyst, Ross Stores has been consistent with the store-related endeavors, as it concluded the store-expansion plans for fiscal 2024 by introducing 47 stores this September and October.

Las Vegas Sands (LVS) Banks on Macau Business Amid High Debt
Per the Zacks analyst, Las Vegas Sands' planned investment in new capital projects in Macau and improving visitations are likely to drive growth. Yet high debt remains a concern.

Phillips 66 (PSX) Rides on Renewable Fuel Market Growth
Per the Zacks analysts, Phillips 66's diverse operations and focus on renewables position it well for future growth. However, elevated crude prices could affect its refining margins.

Travelers (TRV) Rides on Auto & Homeowners, Cat Loss Hurts
Per the Zacks analyst, Travelers is set to grow on the continued progress and growth at the profitable agency auto and homeowners business. However, exposure to cat loss induces earnings volatility.

Job Growth Drives UDR's Rental Units Demand Amid High Supply
Per the Zacks Analyst, job growth has spurred healthy renter demand for UDR. Technological enhancements aid operational efficiency. However, an elevated supply of units in some markets ails.

Organic Growth Aids Cencora (COR) Amid Competition
Per the Zacks analyst, Cencora should benefit from continued solid organic revenue growth, World Courier unit and Specialty distribution business amid cutthroat competition in the Medtech space.

New Upgrades

Tesla (TSLA) Set to Benefit From Trump's Win and AV Strides
Under a Trump administration favoring deregulation, Tesla's autonomous ambitions and robotaxi plans are likely to gain traction, making the Zacks analyst bullish on the stock.

Ubiquiti (UI) Rides on Strength in Enterprise Technology Segment
Per the Zacks analyst, healthy traction in the Enterprise Technology segment driven by the growing proliferation of IoT devices across industries will likely drive Ubiquiti's top line.

CACI International (CACI) Rides on Contract Wins, Buyouts
Per the Zacks analyst, CACI International is benefiting from new contracts supporting IT modernization. Moreover, strategic acquisitions like Applied Insight and Azure Summit bode well for growth.

New Downgrades

Competition & Lack of Control on Some Assets Ail Devon (DVN)
Per the Zacks analyst, Devon (DVN) results are likely to be impacted by competition it faces to secure drilling rights. Limited stake in certain properties creates uncertainty for future development.

Challenges in DIY Segment & Rising Capex Ail Advance Auto (AAP)
Per the Zacks analyst, the financial strain on consumers is resulting in fewer discretionary purchases in Advance Auto's DIY segment. Increasing capital expenditure also remains a concern.

Macroeconomic Woes, Industry Risks Ail Avanos Medical (AVNS)
Per the Zacks analyst, ongoing macroeconomic volatilities are escalating Avanos Medical's operating costs, putting its profits at risk. Uncertain healthcare policies may dent demand for its products.

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

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

BP p.l.c. (BP) : Free Stock Analysis Report

Constellation Energy Corporation (CEG) : Free Stock Analysis Report

Netflix, Inc. (NFLX) : Free Stock Analysis Report

The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report

Tesla, Inc. (TSLA) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research