Top Analyst Reports for Netflix, Boeing & American Express
Monday, December 18, 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 Netflix, Inc. (NFLX), The Boeing Co. (BA) and American Express Co. (AXP). 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 Netflix have outperformed the Zacks Broadcast Radio and Television industry over the year-to-date period (+77.0% vs. +46.8%). The company is benefiting from growing subscriber base thanks to a robust portfolio. Crackdown on password-sharing and the introduction of paid sharing in more than 100 countries, which represents more than 80% of Netflix’s revenue base, is also expected to aid growth.
Netflix’s diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content, has been driving its growth prospects.
However, stiff competition in the streaming space from the likes of Apple, Amazon Prime Video, Disney+, Peacock and Paramount+ is a headwind. Netflix’s leveraged balance sheet and a higher streaming obligation are concerns. Additionally, unfavorable forex is expected to hurt operating income in the fourth quarter of 2023.
(You can read the full research report on Netflix here >>>)
Boeing’s shares have outperformed the Zacks Aerospace – Defense industry over the year-to-date period (+77.0% vs. +46.8%). The company remains the largest aircraft manufacturer in the United States in terms of revenues, orders and deliveries. During the third quarter, the jet giant booked 398 net commercial airplane orders.
A strengthening U.S. defense budget should also boost Boeing’s Defense, Space & Security’s segment growth. Boeing has ample liquidity to meet its debt obligations in the near term. Our model projects Boeing’s total revenues to increase in 2023-2025 period.
However, Boeing expects supply-chain disruptions to continue to harm its operational results, at least in the near term. Its dispute with Embraer over termination of the earlier joint venture might cause it to incur some loss in the future. Rising jet fuel price also poses a threat to the stock’s future growth.
(You can read the full research report on Boeing here >>>)
Shares of American Express have outperformed the Zacks Financial – Miscellaneous Services industry over the year-to-date period (+24.0% vs. +16.8%). The company’s several growth initiatives, such as launching new products, reaching new agreements and forging alliances, are boosting its revenues. Consumer spending on T&E, which carries higher margins for AmEx, is advancing well.
Its balance sheet looks strong with manageable debt and ample cash. Solid cash-generation abilities enable the pursuit of business investments and prudent deployment of capital via buybacks and dividends.
However, with higher utilization of the firm’s cards, expense in the form of card member services and card member rewards is likely to go up and strain the margins. Business development, data processing and equipment costs expected to rise. A high debt level induces a rise in interest expenses. As such, the stock warrants a cautious stance.
(You can read the full research report on American Express here >>>)
Other noteworthy reports we are featuring today include Amazon.com, Inc. (AMZN), BlackRock, Inc. (BLK) and Shopify Inc. (SHOP).
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
Netflix (NFLX) Benefits from Paid Sharing & Robust Portfolio
Military Business Aids Boeing (BA), 787 Program Issue Woes
Robust Revenues & Cash Flows Aid American Express (AXP)
Featured Reports
Buyouts, Solid AUM Aid BlackRock (BLK), Higher Costs Ails
Per the Zacks analyst, BlackRock is poised for growth, given its robust AUM balance and efforts to expand through acquisitions. Elevated expenses remain a headwind and will its bottom-line growth.
CVS Health (CVS) Digital Offerings Grows Amid Stiff Rivalry
The Zacks analyst is impressed with CVS Health’s increasing digital base as it exceeded 55 million unique digital customers till third-quarter end. Yet stiff competition remains a concern.
CSX (CSX) Rides on Dividends & Buyback Amid Rising Expenses
The Zacks analyst likes the shareholder-friendly measures adopted by CSX. However, rising operating expenses are concerning as they are likely to keep the bottom line under pressure.
Strong Demand & Acquisitions Aid Fortive’s (FTV) Performance
Per the Zacks analyst, strong demand trends and acquisitions is driving Fortive’s performance. Softness in healthcare business coupled with uncertain economic recovery in China is concerning.
Build-To-Order Model Aid PulteGroup (PHM) Amid Project Delays
Per the Zacks analyst, PulteGroup’s solid operating model, which strategically aligns the production of build-to-order and quick-move-in homes bode well. Yet, project delays are major concern.
Ayvakit Sales Boosts Blueprint (BPMC), High Dependence a Woe
Per the Zacks Analyst, BPMC has been witnessing increased growth in Ayvakit sales, following label expansion in the U.S. market. However, high dependency on Ayvakit for revenue generation is a woe.
Helen of Troy (HELE) Benefits From Strong Leadership Brands
Per the Zacks analyst, Helen of Troy is benefiting from solid investments in its Leadership Brands. Key Leadership brands like OXO, Osprey and Vicks performed well in fiscal second-quarter.
New Upgrades
Amazon (AMZN) Banks on Prime Momentum & Growing AWS Adoption
Per the Zacks analyst, Amazon is benefiting from Prime enabled fast delivery services and robust content portfolio. Further, its strengthening cloud offerings are aiding the adoption rate of AWS.
Product Rollouts & Growing Merchant Base Aid Shopify (SHOP)
Per the Zacks analyst, Shopify is benefiting from products like Shopify Shipping, Shopify Payments and Shopify Capital solutions. New merchant friendly applications are also driving growth.
Solid Capital Position & Premium Growth Aid Assurant (AIZ)
The Zacks analyst is optimistic about solid Global Lifestyle segment of Assurant, which will drive improvement in earned premiums and fees. Solid capital position supports capital deployment.
New Downgrades
Upstream Budget Tightness to Hurt NOV Inc. (NOV)
The Zacks analyst believes that the tightness in the upstream companies’ investment budget is likely to continue through the near erm, which is expected to weigh on NOV’s revenues.
Lower Production & High Costs to Hurt Southern Copper (SCCO)
The Zacks analyst is worried that lower production due to lower ore grades at Cuajone and high labor, production and operating costs will hurt the company’s results.
Higher Input & Production Costs Hurt Kronos Worldwide (KRO)
Per the Zacks analyst, a spike in raw material costs will weigh on the company’s bottom line. It also faces headwinds from higher production costs.
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The Boeing Company (BA) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
BlackRock, Inc. (BLK) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
American Express Company (AXP) : Free Stock Analysis Report
Shopify Inc. (SHOP) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Original: AMZN Feed: Top Analyst Reports for Netflix, Boeing & American Express