Top Stock Reports for Linde, Vertex Pharmaceuticals & Edwards Lifesciences
Friday, April 21, 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), Vertex Pharmaceuticals Inc. (VRTX) and Edwards Lifesciences Corp. (EW). 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’s shares have outperformed the Zacks Chemical - Specialty industry over the past year (+20.4% vs. -1.6%). The company is making the world more productive by the day, with its wide range of applications for industrial gases. Linde’s primary products in industrial gases include oxygen, which is used as life support in hospitals. Its process gas, like hydrogen, is being utilized for clean fuels, while its high-purity and specialty gases are employed to manufacture electronics.
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.
However, the cost of sales continues to increase, hurting the firm’s bottom line. The firm has mostly been paying a lower dividend yield than the industry’s composite stocks over the past two years.
(You can read the full research report on Linde here >>>)
Shares of Vertex Pharmaceuticals have outperformed the Zacks Medical - Biomedical and Genetics industry over the past year (+21.7% vs. -7.0%). The company’s cystic franchise sales continue to grow driven by its triple therapy, Trikafta/Kaftrio. New reimbursement agreements in ex-U.S. markets and label expansions to younger age groups are driving Trikafta/Kaftrio sales higher.
Vertex has reported double-digit revenue growth over the last several years. It has a broad clinical non-CF pipeline across six disease areas, which are progressing rapidly with multiple clinical milestones in 2023. Multiple late-stage projects have established proof of concept. Vertex faces only minimal competition in its core CF franchise.
However, Vertex’s dependence on just the CF franchise for commercial revenues is a concern. Vertex’s non-CF programs carry significant risk, which is a concern.
(You can read the full research report on Vertex Pharmaceuticals here >>>)
Shares of Edwards Lifesciences have outperformed the Zacks Medical - Instruments industry over the year-to-date period (+14.9% vs. +4.8%). The company’s TMTT segment registered strong growth driven by the continued adoption of the PASCAL platform in Europe.
Further, the growth within Surgical Structural Heart was lifted by increased adoption of the company's premium RESILIA technologies around the world, including the recent launch of the company's MITRIS surgical mitral valve.
Moreover, the expansion of both margins is encouraging. However, during the quarter, TAVR procedure volumes were impacted by the U.S. hospital staffing constraints and the holiday season slowdown.
(You can read the full research report on Edwards Lifesciences here >>>)
Other noteworthy reports we are featuring today include General Motors Co. (GM) and MSCI Inc. (MSCI).
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
Linde's (LIN) Contracts With Minimum Volume Requirements Aid
Vertex (VRTX) Cystic Fibrosis Sales Up, Non-CF Pipeline Solid
Edwards (EW) Rides on Solid TMTT Sales and Global Prospects
Featured Reports
Glaxo's (GSK) Specialty Drugs To Drive Sales in 2023
Glaxo's specialty products like Dovato, Nucala, Trelegy Ellipta, Shingrix, Juluca are driving sales, making up for a lower sales of established drugs due to generic erosion, per the Zacks analyst.
Solid Adoption of ESG Solution Aids MSCI's (MSCI) Progress
Per the Zacks analyst, MSCI is benefiting from strong demand for custom and factor index modules and the increasing adoption of the ESG solution into the investment process.
Robust Product Portfolio & Bookings Aids Microchip (MCHP)
Per the Zacks analyst, Microchip's expanding product portfolio, solid demand for microcontrollers and bookings growth across industrial, data center, and automotive end markets are key catalysts.
Juniper (JNPR) Rides on Solid Demand for Networking Solution
Per the Zacks analyst, Juniper is likely to benefit from its global footprint and solid demand trends backed by its strong portfolio of AI-driven networking solutions and communication devices.
U.S. Construction Segment & Solid Buyouts Aid EMCOR (EME)
Per the Zacks analyst, contributions from the U.S. Mechanical and Electrical Construction segments, solid RPOs and accretive acquisitions benefit EMCOR's growth prospects.
Rising Visitors Aid Hawaiian Electric (HE), COVID Issues Hit
Per the Zacks analyst, rising visitor arrivals in Hawaii driven by recovering economy have been boosting Hawaiian Electric. Yet COVID-19 induced supply chain disruption might hurt the stock
ABM is Gaining from Acquisitions, Rising Operating Cost Ail
Per the Zacks analyst, ABM Industries is benefiting from acquisitions under its multi-year comprehensive strategic plan called ELEVATE. Rising operating cost remains a concern.
New Upgrades
E-Mobility Prowess to Drive General Motors' (GM) Prospects
High demand for General Motors' EVs like GMC Hummer e-pickup and Cadillac LYRIQ e-SUV, as well as the firm's efforts to bolster its battery supply chain makes the Zacks analyst bullish on the stock.
Higher Prices, Geismar 3 Project Aid Methanex (MEOH)
Per the Zacks analyst, the Geismar 3 project will enhance the company's asset portfolio and future cash generation. Healthy methanol prices will also drive its margins.
Urban Outfitters (URBN) FP Movement Initiative Bodes Well
Per the Zacks analyst, Urban Outfitters' FP Movement to boost revenues at the Free People brand appears encouraging. The brand's revenues grew 10.9% during fourth-quarter fiscal 2023.
New Downgrades
Focus on Multiple Basins to Hurt Ovintiv (OVV)
The Zacks analyst believes that there appears to be a case for Ovintiv to narrow its focus by divesting some non-core acreages to concentrate more on its core operations.
Reduced IT Spending Due to Economic Uncertainty Hurts CDW
Per the Zacks analyst, CDW's performance is affected to due to economic uncertainty, which caused customers to spend more cautiously. Also, elevated backlog and rising expenses are concerns.
Escalating Costs, Soft Cash Flows Hurt Select Medical (SEM)
Per the Zacks analyst, a rise in expenses due to higher cost of services might dent the company's margins. A decline in operating cash flows remains a concern.
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GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report
Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report
Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
MSCI Inc (MSCI) : Free Stock Analysis Report
Linde PLC (LIN) : Free Stock Analysis Report
