Top Stock Reports for Linde, Elevance Health & Lam Research
Friday, June 30, 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 Linde plc (LIN), Elevance Health, Inc. (ELV) and Lam Research Corporation (LRCX). 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 >>>
Linde shares have outperformed the Zacks Chemical - Specialty industry over the past year (+34.9% vs. +16.2%) on the back of favorable underlying business momentum. The company’s primary products in industrial gases include oxygen, which is used as life support in hospitals.
Linde has long-term contracts with on-site customers backed by minimum purchase requirements, thereby securing stable cashflows. In the profitable industrial gas market, the merger of Praxair and Linde has created an efficient player with considerable size advantages. For 2023, Linde increased adjusted EPS guidance representing 9%-13% year-over-year growth.
However, declining free cashflow is a concern, reflecting weakness in operating activities. Moreover, the company is extremely vulnerable to uncertainty associated with the slowdown of economic growth, as this could hurt demand for its industrial gases
(You can read the full research report on Linde here >>>)
Shares of Elevance Health have declined -9.4% over the past year against the Zacks Medical Services industry’s decline of -14.3%. The company is witnessing escalating expenses which continue to put pressure on margins. Also, its declining cash flows can be concerning. ELV's balance sheet with a rising debt level can affect financial flexibility. As such, the stock warrants a cautious stance.
Nevertheless, Elevance Health's improving top line can be attributed to premium rate increases and higher memberships. We expect operating revenues to grow 5.4% year over year in 2023. Acquisitions and collaborations have enabled the company to strengthen its business portfolio.
Its well-performing Medicare and Medicaid businesses, coupled with several contract wins, are expected to drive its membership going ahead. The company's growing Carelon business is a major positive. ELV utilizes excess capital to boost shareholder value.
(You can read the full research report on Elevance Health here >>>)
Shares of Lam Research have outperformed the Zacks Semiconductor Equipment - Wafer Fabrication industry over the past six months (+53.3% vs. +41.0%). The company is benefiting from strength across systems business. Also, strengthening customer support business remains a major positive. Rising NAND requirement in accelerating 5G migration, video, and new game consoles is driving the top-line growth.
Strong momentum in foundry and logic segment owing to the growing traction among etch and deposition technologies, is a major positive. Additionally, strength in both ALD metals and dielectrics deposition solutions is contributing well. Advanced packaging technology inflections are other positives.
However, growing supply chain constraints remain concerns. Imposition of export curbs on China’s chip companies is a headwind. Also, cyclicality and adverse foreign currency fluctuations are overhangs.
(You can read the full research report on Lam Research here >>>)
Other noteworthy reports we are featuring today include KLA Corporation (KLAC), Workday, Inc. (WDAY) and Johnson Controls International plc (JCI).
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
Linde's (LIN) Contracts With Minimum Volume Requirements Aid
Elevance's (ELV) Strategic Buyouts & Product Expansion Aid
Lam Research (LRCX) Benefits From Strengthening NAND Demand
Featured Reports
KLA (KLAC) Benefits From Solid Foundry/Logic Market Momentum
Per the Zacks analyst, KLA is gaining from increasing spending by customers across multiple nodes, which is driving its growth in the Foundry/Logic market.
Workday (WDAY) Rides on Portfolio Strength, Cloud Focus
Per the Zacks analyst, Workday is likely to benefit from solid momentum in human capital and financial management portfolio, while its cloud-based business model is increasingly gaining traction.
HVAC & Controls Aid Johnson Controls (JCI) Amid Forex Woes
Per the Zacks analyst, continued demand for HVAC & Controls within the Building Solutions North America segment is likely to drive Johnson Controls' revenues. However, forex woes remain a concern.
Solid Portfolio Mix, Technology Moves Bode Well for UDR
Per the Zacks analyst, UDR's diverse portfolio with a superior product mix of A/B quality properties and technological moves bode well. However, elevated supply and high interest rates are woes.
Favorable Budget Aids Leidos (LDOS), Labor Shortage Woes
Per the Zacks analyst, increasing budgetary revisions by the U.S. administration should boost Leidos' growth. However, shortage of labor pose risk to this stock's growth.
Teleflex's (TFX) Urolift Prospect Strong Amid Stiff Rivalry
Per Zacks analyst, Teleflex's witnessed growth for UroLift in the hospital setting in Q1 and continues to expect the U.S. end market to improve through 2023. Yet, Stiff rivalry remains a concern.
Intellia (NTLA) Pipeline Promising, Markets Competitive
Zacks analyst is encouraged by Intellia's in-vivo genome-editing candidate NTLA-2001 for treating ATTR amyloidosis. However this market face stiff competition from other gene editing therapy developer
New Upgrades
Strong Demand and Pricing Actions Benefit AGCO Corp. (AGCO)
Per the Zacks analyst, AGCO's results will benefit from higher sales owing to strong demand. Moreover, pricing and cost reduction, and strategic investments will drive growth.
Air Travel Demand & Fleet Upgrade Boost Copa Holdings (CPA)
The Zacks analyst is impressed with Copa Holdings' efforts to modernize its fleet. Also, rising air-travel demand is a tailwind.
Dave & Buster's (PLAY) Rides on solid Main Event Store Sales
Per the Zacks analyst, Dave & Buster's is benefiting from robust main event stores sales, unit expansion and digital initiatives. Also focus on labor optimization bode well.
New Downgrades
Rising Costs and Seasonality Ail H&R Block(HRB)
Per the Zacks analyst, increasing costs due to heavy investment in technology are major a headwind to H&R Block's bottomline. The seasonality of the business adds to such friction.
Weakness in Smartphone Market To Hurt Cirrus Logic (CRUS)
Per the Zacks analyst, Cirrus's performance is affected due to reduced smartphone sales volume and lower general market sales. Also, prolonged weakness in China's smartphone market is a concern.
Drab Demand & Lower Inventory Ails Newell's (NWL) Performance
Per the Zacks analyst, Newell has been witnessing tough environment, reduced inventory and lower demand for general merchandise categories. These headwinds are likely to persist in 2023.
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Johnson Controls International plc (JCI) : Free Stock Analysis Report
KLA Corporation (KLAC) : Free Stock Analysis Report
Lam Research Corporation (LRCX) : Free Stock Analysis Report
Workday, Inc. (WDAY) : Free Stock Analysis Report
Linde PLC (LIN) : Free Stock Analysis Report
Elevance Health, Inc. (ELV) : Free Stock Analysis Report
