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Wednesday, December 4, 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 Amgen Inc. (AMGN), Eaton Corp. plc (ETN) and Sony Group Corp. (SONY), as well as two micro-cap stocks, Moving iMage Technologies, Inc. (MITQ) and Enzo Biochem, Inc. (ENZ). 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 >>>

Amgen’s shares have underperformed the Zacks Medical – Biomedical and Genetics industry over the last six months (-9.4% vs. -2.0%). The Zacks analyst believes that increased pricing headwinds and competitive pressure are hurting sales of many products, including some biosimilars. Weakness in some key brands like Otezla and Lumakras pose potential threat.

However, Evenity, Repatha, Prolia, Tavneos and Tezspire, are driving sales exponentially. The addition of Horizon products boosted revenue growth in the first half of the year. Amgen also has some key pipeline assets in obesity and inflammation, which have a large market opportunity.

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

Eaton’s shares have outperformed the Zacks Manufacturing - Electronics industry over the past year (+65.7% vs. +33.9%). The Zacks analyst believes that the company benefits from research and development work and is aided by rising demand from the new AI data center. Eaton is expanding via acquisitions and strategy to manufacture in the region of its end market has helped the company to reduce expenses.

Yet, Eaton’s global operations expose it to unpredictable currency translation, cyber security threats, changes in tax rates and security breaches, which might impact operations. The shortage of raw materials and supplier insolvencies might impact production and operations.

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

Shares of Sony have outperformed the Zacks Audio Video Production industry over the past year (+18.4% vs. +13.0%). Per the Zacks analyst, steady growth across the G&NS, Music and I&SS segments has been a tailwind for Sony. The G&NS unit is gaining from favorable forex impact, higher sales from network services (PlayStation Plus) and rising sales of non-first-party titles.

However, Sony’s performance is affected by reduced hardware sales, forex volatility and intense competition across major product categories. Continued slowdown across the financial services business and lower series deliveries in Television Productions have also ailed.

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

Moving iMage’s shares have underperformed the Zacks Technology Services industry over the last six months (-35.5% vs. +43.7%). The Zacks analyst believes that supply chain disruptions, competition from OTT platforms and regulatory compliance costs have continued to ail the company. Hollywood strikes earlier this year impacted demand for its products.

Yet, its significant contract win with Alamo Drafthouse Cinema and expansion into high-margin SaaS and subscription-based products like MiTranslator and CineQC show great promise. Also, diversifying into live entertainment and eSports markets mitigates cinema industry cyclicality.

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

Enzo’s shares have underperformed the Zacks Medical – Biomedical and Genetics industry over the past year (-13.7% vs. +1.0%). The Zacks analyst believes that persistent net losses, high operating costs, the exit from clinical labs reducing revenue streams and competitive pressures pose risks for the company. Addressing legal expenses are also crucial for sustained profitability.

Yet, Enzo’s strategic pivot toward becoming a dedicated life sciences tools manufacturer has been effectively executed and is a major plus. Its broad and deep intellectual property (IP) portfolio, with patent coverage across vital enabling technologies also positions the company as a leader in innovation.

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

Other noteworthy reports we are featuring today include Meta Platforms, Inc. (META), Altria Group, Inc. (MO) and General Dynamics Corp. (GD).

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

Amgen (AMGN) Well-Poised for Growth on a Solid Pipeline

New Product Development, Wide Market Reach Aid Eaton (ETN)

Higher Music & G&NS Sales Aid SONY Amid Soft Hardware Sales

Featured Reports

User Growth, Instagram Strength Aids Meta Platforms (META)
Per the Zacks analyst, Meta Platforms is benefiting from a strengthening user base. Improving engagement level for Instagram, Messenger and WhatsApp bode well.

Marathon (MPC) to Gain from Sale of Speedway Retail Unit
The Zacks analyst likes Marathon's sale of Speedway business and the resulting cash infusion but is worried over the execution risk associated with its foray into renewable diesel activities.

Rental Unit Demand Aid Essex Property (ESS) Amid High Supply
Per the Zacks Analyst, Essex Property is likely to gain from the healthy renter demand amid high home ownership costs. However, an elevated supply of apartment units in some of its market ails.

FactSet (FDS) Gains From Idacti Buyout, Competition High
Per the Zacks analyst, the Idacti acquisition supports FactSet's ongoing initiative to digitally revamp its content collection infrastructure. Rising competition from other players is an overhang.

General Dynamics (GD) Gains From Orders, Amid Supply Issues
As per the Zacks analyst, General Dynamics is likely to benefit from increasing defense order growth from the Pentagon and U.S. allies. Yet, supply chain issues result in product delivery delays.

Altria (MO) Benefits From Strategic Pricing Initiatives
Per the Zacks analyst, Altria is benefiting from robust pricing actions. During third-quarter 2024, higher pricing strategies aided revenues across the Smokeable Products and Oral Tobacco categories.

Strategic Plans Aid Williams-Sonoma (WSM), High Costs Hurt
Per the Zacks analyst, Williams-Sonoma gains from return to growth strategy, which reflects focus on innovation, improving channel experiences and customer service. Yet, high costs and expenses ail.

New Upgrades

EverQuote (EVER) Boasts Revenue Growth, Solid Balance Sheet
Per the Zacks analyst, consumer traffic, quote request volume and innovative advertiser products and services drive EverQuote revenues. Its strong balance sheet enables it to fulfill debt obligations.

Musculoskeletal Solutions Products Aid Globus Medical (GMED)
The Zacks analyst is impressed with Globus Medical's rising market share in the musculoskeletal solutions space, driven by gains across its product portfolio in expandables, and 3D printed implants.

Enterprise Visibility Unit Aids Zebra Technologies (ZBRA)
Per the Zacks analyst, Zebra Technologies' Enterprise Visibility and Mobility segment is benefiting from solid demand for mobile computing products, data capture solutions and services and software.

New Downgrades

Escalating Costs, High Debt Level Hurts Select Medical (SEM)
Per the Zacks analyst, a rise in Select Medical's expenses due to the higher cost of services might dent the company's margins. Its high leverage remains a concern.

Sluggish Biotech Recovery Ails ICON (ICLR), FX Woes Stay
The Zacks analyst is worried about ICON's Biotech arm witnessing slower decision-making and capital allocation, leading to award delays and slow trial starts. Adverse FX impacts add to the concerns.

NXP Semiconductors (NXPI) Hurt by Sluggish Automotive Market
Per the Zacks analyst, NXP Semiconductors is suffering from softness in the automotive end-market, owing to increased inventory corrections by direct Tier 1 customers.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

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Want the latest recommendations from Zacks Investment Research? Today, you can download 5 Stocks Set to Double. Click to get this free report

General Dynamics Corporation (GD) : Free Stock Analysis Report

Amgen Inc. (AMGN) : Free Stock Analysis Report

Eaton Corporation, PLC (ETN) : Free Stock Analysis Report

Altria Group, Inc. (MO) : Free Stock Analysis Report

Sony Corporation (SONY) : Free Stock Analysis Report

Meta Platforms, Inc. (META) : Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.