Top Stock Reports for Walt Disney, Boeing & General Electric
Friday, July 28, 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 The Walt Disney Company (DIS), The Boeing Company (BA) and General Electric Company (GE). 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 Walt Disney have performed in-line with the Zacks Media Conglomerates industry over the year-to-date period (-0.9% vs. -0.9%), but have lagged the S&P 500 index's +19.5% gain. The company’s profitability continues to be negatively impacted by higher programming and production costs across Disney+, ESPN+ and Hulu. Disney’s leveraged balance sheet remains a concern.
Nevertheless, Disney is benefiting from growing popularity of Disney+ core, owing to a strong content portfolio and a cheaper bundle offering. Strong line-up of movies that include Haunted Mansion, Poor Things and The Creator bodes well for the Media and Entertainment Distribution segment.
The company has been nominated for several Emmy awards that suggests a content portfolio. Revival in Parks, Experiences and Products businesses is encouraging. Theme Park business is likely to gain from strong demand across both the domestic and international parks.
(You can read the full research report on Walt Disney here >>>)
Boeing shares have outperformed the Zacks Aerospace - Defense industry over the past year (+49.0% vs. +1.5%). The company remains the largest aircraft manufacturer in the United States in terms of revenues, orders and deliveries.
During the second quarter, Boeing booked 460 net commercial airplane orders and recorded a 10% hike in service revenues. Strengthening U.S. defense budget should also boost its growth. The company holds a strong solvency position in the near term.
However, Boeing expects supply-chain disruptions to continue to harm its operational results, at least in the near term. Further, the company has been incurring 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 >>>)
Shares of General Electric have outperformed the Zacks Diversified Operations industry over the past year (+97.2% vs. +4.0%). Strong performance of the Aerospace unit, driven by commercial aerospace strength, significant growth in LEAP engine deliveries and higher defense engine orders, is aiding General Electric’s growth.
With strength in GE Gas Power services and growth at Grid business and Onshore Wind in North America, signs of improvement in GE Vernova (the combined operations of GE Power and Renewable) hold promise. Due to these tailwinds, the company has raised its 2023 guidance.
However, supply chain disruptions, inflationary pressure and foreign currency headwinds are other concerns for General Electric.
(You can read the full research report on General Electric here >>>)
Other noteworthy reports we are featuring today include Lam Research Corporation (LRCX), GSK plc (GSK) and América Móvil, S.A.B. de C.V. (AMX).
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
Strong Content Portfolio & Parks Business Aids Disney (DIS)
Military Business Aids Boeing (BA), 787 Program Issue Woes
General Electric (GE) Rides on Aerospace Segment Strength
Featured Reports
Lam Research (LRCX) Benefits From Strengthening NAND Demand
Per the Zacks analyst, increasing NAND requirement in accelerating 5G migration, video, and new game consoles is a positive for Lam Research.
America Movil (AMX) Benefits from Increasing Subscriber Base
Per the Zacks analyst, America Movil's performance is gaining from growing subscriber base. Focused 5G efforts and deployment of advanced technologies are other tailwinds.
Strong Domestic Demand, Cost Cuts Aid Sherwin-Williams (SHW)
Per the Zacks analyst, favorable demand in domestic markets will support Sherwin-Williams' sales volumes. Cost savings from restructuring actions will also support margins.n
Automotive Market Momentum Aids NXP Semiconductors (NXPI)
Per the Zacks analyst, NXP Semiconductors is benefiting from growing momentum in automotive market owing to innovation in system solutions.
Kinder Morgan (KMI) to Benefit From Rising Demand for RNG
The Zacks analyst is upbeat about Kinder Morgan's huge growth potential in the RNG business, with the demand in North America expected to rise significantly in the next two decades.
Insulet (PODD) Banks on Omnipod Adoption, Stiff Rivalry Ail
The Zacks analyst is impressed with Insulet's strong U.S. growth in Q1 driven by Omnipod 5 market adoption, representing almost 95% of U.S. new customer starts. Stiff rivalry remains a concern.
Snap-On's (SNA) RCI Program Aids Sales & Margins Growth
Per the Zacks analyst, Snap-On's focus on the rapid continuous improvement (RCI) program, designed to enhance organizational effectiveness and minimize costs, has boosted sales, margins and savings.
New Upgrades
GSK (GSK) Vaccine & HIV Products to Drive Sales Growth
GSK's key products like Dovato, Nucala, Shingrix and Juluca are driving sales. The Zacks analyst believes GSK has some promising new products in Specialty Medicines and Vaccines areas.
Improving Commissions and Fees Drive Brown and Brown (BRO)
Per the Zacks analyst, Brown and Brown is set to grow on higher commissions and fees across all the segments driven by net new and renewal business that in turn drive top line.
Product Expansions Boosts JAKKS Pacific's (JAKK) Prospects
Per the Zacks analyst, JAKKS Pacific is likely to benefit from product expansions, FOB business model and digital initiatives. Also a strong capital structure with no debt bode well for the company.
New Downgrades
Heavy Investments in Technology Hurt Robert Half (RHI)
Per the Zacks analyst, Robert Half's increasing expenses, due to a rise in staff compensation costs and heavy investments in technology initiatives, are likely to affect the company's bottom line.
Rising Costs, Poor Asset Quality Hurt Ally Financial (ALLY)
Per the Zacks analyst, elevated costs due to Ally Financial's efforts to launch products and grow inorganically will hurt profits. Deteriorating asset quality due to rising provisions is another woe.
Elevated Costs to Hurt Associated Banc-Corp (ASB) Profits
Per the Zacks analyst, persistently rising expenses on the back of higher technology and personnel costs are expected to hurt Associated Banc-Corp's bottom-line growth to an extent in the near term.
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The Boeing Company (BA) : Free Stock Analysis Report
General Electric Company (GE) : Free Stock Analysis Report
GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report
America Movil, S.A.B. de C.V. Unsponsored ADR (AMX) : Free Stock Analysis Report
Lam Research Corporation (LRCX) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
