Top Stock Reports For Verizon, Prologis & Medtronic


Image Source: PixabayThe 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 Verizon Communications Inc. (VZ), Prologis, Inc. (PLD), and Medtronic plc (MDT), as well as a micro-cap stock Crimson Wine Group, Ltd. (CWGL). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.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 Verizon have gained +22.2% over the year-to-date period against the Zacks Wireless National industry’s gain of +27.7%. The company is likely to benefit from the deployment of a cloud-native, container-based, virtualized architecture for higher flexibility, scalability, and cost efficiency across its network. Customer-focused planning, disciplined engineering, and steady infrastructure investments are tailwinds. Various mix-and-match pricing plans in both wireless and home broadband divisions have led to solid client additions. However, lower wireline and wireless equipment revenues are major concerns. Huge promotional expenses and lucrative discounts to expand the customer base are weighing on margins. High capital expenditure for continuous network upgrades and fiber deployment is a headwind. A muted guidance for 2024 is worrisome.Prologis’ shares have gained +7.9% over the past year period against the Zacks REIT and Equity Trust – Other industry’s gain of +25.7%. The company is well-poised to gain from its portfolio of strategically located industrial facilities in some of the world’s busiest distribution markets. Strategic buyouts and development activities appear promising. For 2024, we project rental revenues to rise 10.4% year over year. Its scale drives efficiency and a solid balance sheet strength aids its growth endeavors.  Industrial real estate market demand is healthy and this trend is expected to continue in the near term. Also, the shrink in the construction pipeline augurs well. However, amid a volatile environment and geopolitical issues, customers remain focused on cost controls and delaying their leasing decisions. As such, net absorptions are likely to be affected. High interest rates remain a concern. Our estimate indicates a 12.2% year-over-year rise in interest expenses in 2024.tShares of Medtronic have gained +13.6% over the past year against the Zacks Medical – Products industry’s gain of +20.2%. The company is strategically expanding its global presence to address the unmet demand for advanced medical devices. Within Cardiovascular, Medtronic is gaining market share, banking on product launches in CRM and Structural Heart. Hypertension has brought up multibillion-dollar opportunities for MDT. In MedSurg, Medtronic is scaling the production of Hugo RAS. The Surgical and Neuroscience portfolios continue to contribute positively. Further, the company’s Pacing business continued to drive strong growth banking on strong global growth of its Micra leadless pacemaker. Innovations and market expansion efforts are helping it offset the impact of inflation and supply disruptions. Medtronic’s strong liquidity position should allow it to meet its near-term debt obligations. All these factors support our bullish stance on the stock.Crimson Wine’s shares have outperformed the Zacks Beverages – Alcohol industry over the year-to-date period (+0.9% vs. -6.2%). This microcap company with a market capitalization of $123.36 million presents a compelling case for investment with its strong portfolio of premium wine estates, including brands like Pine Ridge and Archery Summit, which benefit from sustained demand in the luxury segment. Crimson Wine boasts a robust balance sheet, with $16.86 million in cash and low debt. Effective cost management, reduced inventory write-downs, and a focus on high-margin direct-to-consumer sales bolster the investment thesis. However, risks include declining sales in both wholesale and direct-to-consumer channels, which fell 5% and 4% year over year, respectively, in second quarter 2024. Rising operating expenses, increased share repurchases amid falling cash reserves, and exposure to climate risks also weigh on the outlook. Lastly, Crimson is vulnerable to inflation, market conditions, and fluctuations in consumer demand for premium wines.Other noteworthy reports we are featuring today include Amazon.com, Inc. (AMZN), The Boeing Co. (BA), and Yum! Brands, Inc. (YUM).More By This Author:Mixed Results Ahead Of AVGO Beat, Payrolls FridayFed Rate Cut Alert: The Case For 50 BPS?Markets Sell Off As Labor Market Data Looms

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