Top Analyst Reports for BHP Group, AstraZeneca & Boeing
Friday, July 7, 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 BHP Group Limited (BHP), AstraZeneca PLC (AZN) and The Boeing Company (BA). 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 BHP Group have outperformed the Zacks Mining - Miscellaneous industry over the past year (+19.1% vs. +6.3%) as the company's leverage to the prospect of Chinese fiscal stimulus through its iron ore production outlook.
The company’s iron ore production guidance for fiscal 2023 is 249-260 Mt, indicating 1% year-over-year growth at the midpoint. Iron ore prices had earlier lost steam on weak demand in China due to the slump in property investment while supply prospects remained strong.
However, the possibility that the Chinese government will provide stimulus measures for its construction sector has helped lift up iron ore prices lately. Going forward, iron ore prices are expected to be supported by demand in the automotive sector, infrastructure and housing market.
Copper and nickel prices will also be fueled by growing demand for electric vehicles. BHP’s investment in growth projects with focus on commodities like copper, nickel and potash will aid growth. Its efforts to make operations more efficient through technology adoption will drive earnings.
(You can read the full research report on BHP Group here >>>)
AstraZeneca shares have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-0.4% vs. +8.6%). The company’s diabetes franchise faces stiff competition while pricing pressure hurts sales in the respiratory unit. Sales are slowing down in its key market, China. Estimate movements have been mixed ahead of Q2 results.
Nevertheless, AstraZeneca has reported impressive earnings surprise in recent quarters. Its key drugs, mainly cancer medicines, Lynparza, Tagrisso and Imfinzi should keep driving revenues. Its pipeline is strong with several phase III data readouts lined up for 2023.
It has also been engaged in external acquisitions and strategic collaborations to boost its pipeline while investing in geographic areas of high growth like emerging markets. Cost-cutting efforts should drive earnings. The Alexion buyout strengthened its immunology franchise, adding several drugs that are boosting its top line.
(You can read the full research report on AstraZeneca here >>>)
Shares of Boeing have outperformed the Zacks Aerospace - Defense industry over the past year (+53.2% vs. +0.7%). The company remains the largest aircraft manufacturer in the United States, in terms of revenues, orders and deliveries. Lately, the company has been witnessing a solid recovery in its commercial business.
During the first quarter, the company booked 107 net commercial airplane orders. The U.S. government’s inclination toward strengthening the nation’s defense system should also boost Boeing’s growth. The company holds a strong solvency position in the near term.
However, its 737 MAX program remains a cause of concern in China, thereby impacting its expectation of delivery timing and future gradual production rate increases. Boeing continues to incur notable abnormal production cost in relation to production quality issues for 787 jets, which may hurt its future results.
(You can read the full research report on Boeing here >>>)
Other noteworthy reports we are featuring today include Diageo plc (DEO), Arthur J. Gallagher & Co. (AJG) and General Mills, Inc. (GIS).
Director of Research
Sheraz Mian
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
BHP Group (BHP) Bets on Operation Efficiency Amid High Costs
Cancer Drugs Aid AstraZeneca (AZN) Sales; Pipeline Strong
Military Business Aids Boeing (BA), 787 Program Issue Woes
Featured Reports
Diageo's (DEO) Robust Pricing & Premiumization Aid Margins
Per the Zacks analyst, Diageo has been witnessing robust margin trends driven by its premiumization efforts and pricing actions. It expects continued organic operating margin growth in FY23.
Arthur J. Gallagher (AJG) Buyouts Aid, Cost Woes Linger
Per the Zacks analyst, a number of acquisitions have helped Arthur J. Gallagher to enhance its capabilities and drive growth. However, elevated expenses remain an overhang.
General Mills (GIS) Gains From Focus on Accelerate Strategy
Per the Zacks analyst, General Mills is gaining from its Accelerate strategy, as part of which it is competing efficiently via brand building, investing in saving initiatives and reshaping portfolio.
Momentum in Cash App & Square Ecosystems Benefits Block (SQ)
Per the Zacks analyst, Block is benefiting from strong Cash App engagement and its growing active customer base. Further, the company's growing momentum across Square Ecosystem remains a positive.
Electronic Focus Aid Interactive Brokers (IBKR), Costs a Woe
Per the Zacks analyst, development of proprietary software and focus on the Electronic Brokerage segment will aid Interactive Brokers. Higher costs due to technology upgrades will likely hurt profits.
Schneider (SNDR) Rides on Dividends Amid Rising Expenses
The Zacks analyst likes the shareholder-friendly measures adopted by Schneider. However, rising capital expenditures are concerning as they are likely to keep the bottom line under pressure.
Tandem (TNDM) Gains from Expansion Efforts, Rising Costs Ail
The Zacks analyst is impressed with Tandem's (TNDM) efforts to undertake innovation and develop products to cater to consumers' and clinical needs globally. Yet, mounting expenses pose concerns.
New Upgrades
Jabil (JBL) Rides on Solid Demand Trends, Concerted AI Focus
Per the Zacks analyst, Jabil will likely gain from solid momentum in automotive, health care and industrial business. Efficient working capital management and AI integration are tailwinds.
Build-To-Order Model & Expansion Efforts Aid Toll Brothers (TOL)
Per the Zacks analyst, Toll Brothers is likely to benefit from its Build-To-Order model and expansion efforts. Also, limited competition in the luxury housing market is added positive.
Cost-Cutting Actions, Solid Order Trends Aid Apogee (APOG)
Per the Zacks analyst, Apogee's efforts to cut costs, and improve productivity and efficiency will drive its growth. Strong project pipeline and order trends will continue to boost revenues.
New Downgrades
Rising Rates, Seasonality of Business Ail MDU Resources (MDU)
Per the Zacks analyst, MDU Resources' margins can be impacted by rising interest rates. Seasonality of business operations may significantly reduce demand and adversely impact its overall performance.
Upstream Budget Tightness to Hurt Helmerich & Payne (HP)
The Zacks analyst believes that the tightness in the upstream companies' investment budget is likely to continue through this year, which is expected to weigh on Helmerich & Payne's revenues.
Sluggish Ad Demand & Stiff Competition Hurt Paramount (PARA)
Per the Zacks analyst, sluggishness in advertising demand is hurting Paramount Global and stiff competition from Netflix, Disney+, HBO Max and Peacock are expected to hurt prospects in the near term.
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The Boeing Company (BA) : Free Stock Analysis Report
AstraZeneca PLC (AZN) : Free Stock Analysis Report
BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report
General Mills, Inc. (GIS) : Free Stock Analysis Report
Diageo plc (DEO) : Free Stock Analysis Report
Arthur J. Gallagher & Co. (AJG) : Free Stock Analysis Report
