Yahoo Finance Top Research Reports for Linde, Airbnb & Canadian Natural Resources
Tuesday, November 7, 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), Airbnb, Inc. (ABNB) and Canadian Natural Resources Limited (CNQ). 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 year-to-date period (+21.8% vs. +8.8%). The company is making the world more productive by the day with its wide range of applications for its industrial gases. Linde’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. The firm reported strong third-quarter earnings, thanks to higher pricing from the Americas segment.
However, increasing competition for new projects and developments in emerging markets is concerning. 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 Airbnb have outperformed the Zacks Internet - Content industry over the year-to-date period (+38.2% vs. +23.9%). The company’s revenue growth was driven by continuous improvements in Nights and Experiences Booked, enabling Airbnb to witness a positive trend in its Gross Booking Value.
Growing gross nights booked, owing to solid momentum across high-density urban areas and first-time bookers has been a tailwind. Increasing guest demand and continuous recovery in cross-border travel aided the quarterly performance. Strong momentum in active listings, owing to supply growth across all regions, particularly in Asia Pacific and Latin America, has been another positive.
Notably, shares have outperformed the industry year to date. However, greater volatility in travel demand, subjected to macroeconomic trends and geopolitical conflicts, is a concern.
(You can read the full research report on Airbnb here >>>)
Shares of Canadian Natural Resources have outperformed the Zacks Oil and Gas - Exploration and Production - Canadian industry over the year-to-date period (+24.0% vs. +6.7%). The company’s balanced and diverse production mix facilitates long-term value and reduces the risk profile. Canadian Natural’s acquisition of Athabasca Oil Sands project in 2017 has added significant value to its asset base and buoyed the production prospects.
Notably, lower capital needs and improving operational efficiencies have enabled the company to generate significant free cash flow. What’s more, the company remains committed to investor friendly moves by the way of dividend payout and stock buybacks.
However, Canadian Natural is set to face debt maturities each year out till 2027. Further, the C$3.25-billion term loan to fund the Devon Energy asset buy has worsened the company’s debt-to-capital ratio and led to higher interest outgo. The interplay of these factors accounts for the cautious stance.
(You can read the full research report on Canadian Natural Resources here >>>)
Other noteworthy reports we are featuring today include Blackstone Inc. (BX), Waste Management, Inc. (WM) and Constellation Brands, Inc. (STZ).
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
Airbnb (ABNB) Banks on Strong Nights & Experiences Bookings
Diverse Production Mix to Aid Canadian Natural (CNQ)
Featured Reports
Fund-Raising Ability Aids Blackstone (BX), High Costs Ails
Per the Zacks analyst, Blackstone's solid fund rising capability and asset inflows will likely aid profitability. Yet, mounting expenses and low dividend sustainability are major near-term headwinds.
Focused Differentiation Aids Waste Management (WM) Liquidity Low
Per the Zacks analyst, differentiation through capitalization of extensive assets ensures long-term profitable growth for Waste Management. Low liquidity a concern.
Beer Business to Boost Constellation Brands' (STZ) Feat
Per the Zacks analyst, Constellation Brands is gaining from solid demand in beer business, particularly Modelo Especial and Corona Extra. Sales likely to grow 8-9% for the beer segment in fiscal 2024.
PACCAR's (PCAR) Battery Cell JV Bodes Well Amid Cost Woes
While PACCAR's joint venture with Daimler and Cummins for US battery cell production is encouraging, the Zacks analyst is worried about high capex and R&D costs that might hurt the firm's margins.
Carbon Project Demand Aids Weyerhaeuser (WY), Low Volumes Ail
Per the Zacks analyst, solid capital inflows for carbon/ESG-related projects and focus on operational excellence are aiding Weyerhaeuser. However, lower sales volumes and high costs hurt.
Focus on Fee-Based Business Drives Principal Financial (PFG)
Per the Zacks analyst, focus on fee-based business, improving assets under management and spread and risk businesses help Principal Financial earn steadily. Yet, rising expenses weigh on margins.
BBEAM's Base Editing Platform Holds Promise, Rivalry a Woe
Per the Zacks analyst, Beam's proprietary base-editing technology offers a promising approach to genetic medicine with minimal DNA damage. However, stiff competition in the target market is a concern.
New Upgrades
Guidewire (GWRE) Benefits From Solid Momentum in Cloud Business
Per the Zacks Analyst, Guidewire's performance is gaining from solid momentum in cloud business. Also, solid revenue growth across subscription and support business segment is a tailwind.
Pilgrim's Pride (PPC) Benefits from Strong Mexico operations
Per the Zacks analyst, Pilgrim's Pride is benefiting from strength in the Mexico operations. During the third quarter of 2023, net sales of Mexico segment increased 30.5% to $559.7 million.
Science Applications (SAIC) Rides on Contract Wins, Buyouts
Per the Zacks analyst, Science Applications is benefiting from new contracts supporting IT modernization. Moreover, strategic buyouts like Koverse and Halfaker and Associates bode well for growth.
New Downgrades
Rising Rates, Risky Nuclear Plant Operation Ail Dominion (D)
Per the Zacks analyst, Dominion's capital projects will become costlier due to the rising interest rates. Risk associated in operating nuclear facilities will create additional challenges.
Viasat (VSAT) Plagued by High Debt Burden, Fierce Competition
Per the Zacks analyst, intense competition in the Satellite Services and Government Systems verticals will likely impact Viasat's margins. High debt burden negatively impacts investors' confidence.
Rising costs and Stiff Rivalry Impede Envista (NVST) Growth
The Zacks analyst is worried about Envista facing challenging macroeconomic conditions resulting in a significant escalation in its costs and expenses. stiff rivalry remains a concern.
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Blackstone Inc. (BX) : Free Stock Analysis Report
Waste Management, Inc. (WM) : Free Stock Analysis Report
Constellation Brands Inc (STZ) : Free Stock Analysis Report
Canadian Natural Resources Limited (CNQ) : Free Stock Analysis Report
Linde PLC (LIN) : Free Stock Analysis Report
Airbnb, Inc. (ABNB) : Free Stock Analysis Report
