Top Research Reports for Bristol-Myers, Arthur J. Gallagher & TC Energy
Friday, October 11, 2024
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Bristol-Myers Squibb Co. (BMY), Arthur J. Gallagher & Co. (AJG) and TC Energy Corp. (TRP), as well a micro-cap stock Bridger Aerospace Group Holdings, Inc. (BAER). 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 Bristol-Myers Squibb have underperformed the Medical - Biomedical and Genetics industry over the past year (-2.1% vs. +4.4%). The company maintains momentum as growth in Eliquis, Opdivo and Reblozyl drives sales and cost-cutting measures boost the bottom line. Bristol-Myers Squibb is focusing on reshaping its business to achieve sustained top-tier growth.
The uptake of newer drugs like Opdualag, Reblozyl and Breyanzi has been strong. It is enabling Bristol-Myers to offset the loss of revenues due to declining sales of older drugs. The recent acquisitions of Mirati, Karuna and RayzeBio should strengthen and diversify its portfolio.
However, generic competition for its key drugs, Revlimid and Eliquis (outside the United States), is a headwind. While the performance of new drugs is encouraging, these will take some time to contribute significantly to the top line.
(You can read the full research report on Bristol-Myers Squibb here >>>)
Arthur J. Gallagher’s shares have gained +23.5% over the past year against the Zacks Insurance - Brokerage industry’s gain of +32.2%. The company is on track to generate both organic (particularly international) and inorganic growth. Its focus on tapping opportunities across the globe bodes well for growth. The insurance broker expects organic revenue growth in 2024 in the Risk Management and Brokerage segment to be better than the 2023 level.
This solid performance is expected to lead to an increase in cash flows, facilitating the return of wealth to shareholders via share buybacks and dividends. First-quarter adjusted earnings beat the consensus estimate.
However, escalating expenses weigh on the company’s margins. Lower return on capital poses a threat. Also, the debt level is significant, which raises interest payouts and results in low times interest earned.
(You can read the full research report on Arthur J. Gallagher here >>>)
Shares of TC Energy have gained +42.3% over the past year against the Zacks Alternative Energy - Other industry’s gain of +52.0%. The company is a predominantly natural gas pipeline operator with operations spanning Canada, the United States and Mexico. A quality stock with industry leading wide moat assets, TC Energy stands out as a dividend aristocrat that is set to increase its payout for the 25th consecutive year in 2024.
Meanwhile, the company’s historic Indigenous Equity Ownership agreement for the NGTL and Foothills Systems demonstrates a strong commitment to sustainable and inclusive growth. TC Energy’s strategic asset management and divestiture program positions it to maximize asset value.
However, continued timing and cost overrun issues over large construction projects, significant capital expenditure and interest rate volatility, are major overhangs. Moreover, share price appreciation will likely be tied to the extent of debt reduction.
(You can read the full research report on TC Energy here >>>)
Bridger Aerospace’s shares have underperformed the Zacks Aerospace - Defense industry over the past year (-71.7% vs. +11.8%). This microcap company with market capitalization of $108.46 million have high leverage and debt servicing pressures, seasonal revenue dependence, ongoing losses and execution risks in international expansion pose significant challenges. Its success hinges on maximizing fleet utilization, managing debt and maintaining government contracts amid an unpredictable wildfire environment.
Nevertheless, Bridger Aerospace is positioned to capitalize on the rising demand for aerial firefighting services, driven by climate change and population shifts to wildfire-prone areas. The company's fleet, including CL-415EAF "Super Scoopers" and advanced surveillance aircraft, secures its strong market position and ensures a stable income.
The acquisition of FMS Aerospace diversifies revenue streams, adding year-round income and reducing reliance on seasonal fire activity. The expansion into international markets offers growth potential.
(You can read the full research report on Bridger Aerospace here >>>)
Other noteworthy reports we are featuring today include NextEra Energy, Inc. (NEE), Roku, Inc. (ROKU) and MasTec, Inc. (MTZ).
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
New Drugs Fuel Bristol Myers (BMY) Amid Generic Competition
Arthur J. Gallagher (AJG) Banks on Buyouts Amid High Costs
TC Energy's (TRP) Vast Pipeline Network Fuels Future Growth
Featured Reports
NextEra (NEE) Gains from Renewable Focus, Steady Investment
Per the Zacks analyst, NextEra's planned long-term investment to enhance clean electricity generation and strengthen its infrastructure will boost its profitability.
MasTec (MTZ) Banks on Solid Oil & Gas Unit, Low Spending Ail
Per the Zacks analyst, MasTec benefits from solid contributions from Oil and Gas unit on strong project activity. Yet, a slow recovery in demand for distribution services due to low spending hurt.
Decent Comps Run to Fuel Ollie's Bargain's (OLLI) Top Line
Per the Zacks analyst, Ollie's Bargain's business model, cost control efforts and healthy comps run reinforce its position. Management expects fiscal 2024 comps to increase in the band of 2.7-3.2%.
Alkermes' (ALKS) Proprietary Drugs Aid Growth, High Reliance a Woe
Per the Zacks analyst, strong sales of Alkermes' proprietary drugs are driving growth. The restructuring initiatives are also a positive. Heavy dependence on partners for revenues remains a concern
Technology Boost Aids Strategic Education (STRA), Costs Ail
Per the Zacks analyst, Strategic Education is benefiting from increased employer-affiliated enrollment and focus on technology platforms and marketing initiatives. Yet, high costs and expenses hurt.
New Upgrades
ROKU Rides on User Engagement & Strong Roku Channel Growth
Per the Zacks analyst, Roku is benefiting increased user engagement and ARPU. Growth of the Roku Channel in both reach and engagement is benefiting top-line growth.
Telephone and Data Systems (TDS) Rides on Solid Fiber Expansion
Per the Zacks analyst, healthy growth in residential broadband connections, backed by significant investment in fiber network infrastructure is expected to drive Telephone and Data Systems' top line.
New Downgrades
Weak Industrial Segment and Increasing Costs Ail Barnes (B)
Per the Zacks analyst, Barnes is experiencing softness in the Industrial segment due to weakness in the motion control solutions and automation businesses. High costs are an added concern.
Weaker China Demand, High Capex Ail ArcelorMittal (MT)
Per the Zacks analyst, the company faces challenges from weaker steel demand in China due to the slowdown in key end-use markets. High capital expenditure may also impact its free cash flows. n
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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
Bristol Myers Squibb Company (BMY) : Free Stock Analysis Report
Arthur J. Gallagher & Co. (AJG) : Free Stock Analysis Report
TC Energy Corporation (TRP) : Free Stock Analysis Report
MasTec, Inc. (MTZ) : Free Stock Analysis Report
Roku, Inc. (ROKU) : Free Stock Analysis Report
Bridger Aerospace Group Holdings, Inc. (BAER): Free Stock Analysis Report