Top Stock Reports for AstraZeneca, Caterpillar & Crown Castle

Friday, October 21, 2022

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 AstraZeneca PLC (AZN), Caterpillar Inc. (CAT) and Crown Castle Inc. (CCI). 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 AstraZeneca have underperformed against the Zacks Large Cap Pharmaceuticals industry over the past year (-12.0% vs. +4.6%). The company’s diabetes franchise faces stiff competition while pricing pressure is hurting sales in the respiratory unit. Sales of some cancer medicines are being hurt due to COVID-19. Sales are slowing down in key market, China, due to pricing pressure.

Estimates have gone up slightly ahead of the Q3 earnings release on November 10th. The company has a mixed record of earnings surprises in the recent quarters. However, AstraZeneca’s cancer medicines, Lynparza, Tagrisso and Imfinzi should keep driving revenues.

AstraZeneca has been engaged in external acquisitions and strategic collaborations to boost its pipeline while investing in geographic areas of high growth like emerging markets. The Alexion buyout strengthens its immunology franchise, adding several drugs that can boost its top line.

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

Caterpillar shares have declined -9.3% over the past year against the Zacks Manufacturing - Construction and Mining industry’s decline of -11.7%. The company is facing issues like ongoing supply chain snarls and cost pressures. Nevertheless, its revenues and earnings grew year over year for six straight quarters thanks to its cost-saving actions, strong end-market demand and pricing actions.

The Zacks analyst expect the company’s adjusted earnings per share for 2022 to grow 11.6%, while revenues are predicted to rise 11.2%. The Construction Industries segment is expected to benefit from the rising construction activities in the United States and other parts of the world.

Backed by demand for commodities fueled by the energy-transition trend, a thriving mining sector will aid the Resource Industries segment. Its dividend yield and payout ratio are higher than its peers. A strong liquidity position, investments in expanding services and digital initiatives will help Caterpillar deliver outsized returns.

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

Crown Castle shares have underperformed against the Zacks REIT and Equity Trust - Other industry over the past year (-29.7% vs. -28.0%). The consolidation in the wireless industry will likely affect the company’s top line while higher interest rates are expected to add to expenses and make borrowings to fund development costlier. Also, customer concentration is a woe.

However, given the increase in mobile data usage, spectrum availability and high network investments by wireless carriers to deploy 5G networks, Crown Castle is poised to gain from this upbeat trend in the upcoming period.

Its efforts to double small-cell deployments in 2023 will likely act as a tailwind. The company hiked its quarterly dividend payment by 6.5% on the back of expected strong cashflows.

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

Other noteworthy reports we are featuring today include Cheniere Energy, Inc. (LNG), Nasdaq, Inc. (NDAQ), and American Water Works Company, Inc. (AWK).

Sheraz Mian

Director of Research

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

Cancer Drugs Aid AstraZeneca (AZN) Sales Amid China Impact

Caterpillar (CAT) to Gain on Strong Demand in End Markets

Crown Castle (CCI) to Grow on Higher 5G Deployment Efforts

Featured Reports

Cheniere (LNG) to Gain from Sustained Gas Export Strength
The Zacks analyst believes that being one of the few liquefied natural gas exporters of the U.S., Cheniere Energy is set to capitalize on the sustained strength in shipments to Europe and Asia.

Accelerating Non-Trading Revenue Base Aids Nasdaq (NDAQ)
Per the Zacks analyst, Nasdaq is set to grow on its focus toward Market Technology and Information Services businesses. However, increasing expenses weighing on margin expansion is likely a concern.

Investment & Expanding Operation Aid American Water (AWK)
Per the Zacks analyst American Water's planned investment to strengthen infrastructure and expanding operation through acquisition and organic means are going to drive its performance.

Akamai (AKAM) Rides on Solid Cloud Security Solutions Demand
Per the Zacks analyst, Akamai is well-positioned to gain from the huge growth of mobile data traffic driven by increasing adoption of mobile data/apps and high demand for cloud security solutions.

New Buyouts Aid Bruker (BRKR), Supply Chain Disruption Ails
The Zacks analyst is optimistic about Bruker's MOLECUBES and PaSER's intelligent buyouts that bode well for its portfolio expansion schemes. Yet, supply chain issues and logistics delay impact growth.

New Upgrades

Construction Materials Segment to Drive Carlisle (CSL)
Per the Zacks analyst, solid traction of Carlisle's Construction Materials segment, led by reroofing market in the United States and growth in the architectural metals platform will drive its sales.

DCP Midstream (DCP) Banks on Resilient Midstream Business
Per the Zacks analyst, DCP Midstream has the ability to generate stable cashflows, banking on its fully-integrated midstream business, which is resilient to volatility in commodity prices.

New Downgrades

Kinder Morgan (KMI) to Suffer From Lower Asset Base Turnover
Per the Zacks analyst, Kinder Morgan's asset base will witness lower volumes due to energy market volatility, which might hurt the bottom line. Rising operation and maintenance costs are concerning.

Global Volume Softness Dents FedEx's (FDX) Growth Prospects
The sharp decline in shipping demand particularly in Asia and Europe is a major headwind for FedEx. Softening e-commerce demand is another concern, per the Zacks analyst.

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AstraZeneca PLC (AZN) : Free Stock Analysis Report
 
Nasdaq, Inc. (NDAQ) : Free Stock Analysis Report
 
Caterpillar Inc. (CAT) : Free Stock Analysis Report
 
Crown Castle Inc. (CCI) : Free Stock Analysis Report
 
Cheniere Energy, Inc. (LNG) : Free Stock Analysis Report
 
American Water Works Company, Inc. (AWK) : Free Stock Analysis Report
 
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