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Top Analyst Reports for Walmart, Micron & Enbridge

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Friday, January 21, 2022

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 Walmart Inc. (WMT), Micron Technology, Inc. (MU), and Enbridge Inc. (ENB). 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 Walmart have underperformed the Zacks Supermarkets industry over the past year (-1.9% vs. +0.5%). Walmart has been encountering supply chain issues, inflation and rising labor costs that are hurting margins. The Zacks analyst, however, believes that a strong inventory position, increased contributions from advertising revenues and lower markdowns will offset inflationary pressures.

As more customers and members return to stores and clubs, the demand is likely to remain strong. WMT continues to benefit from solid omni-channel endeavors as well as last-mile delivery capabilities. Walmart is also gaining from its sturdy comp sales record, driven by its constant omnichannel efforts.

(You can read the full research report on Walmart here >>>)

Micron shares have gained +25.5% over the past three months against the Zacks Semiconductors industry’s gain of +26.1%, however, things seem to be improving for it. The Zacks analyst believes that Micron has been witnessing steady growth in demand for memory chips from cloud-computing providers as well as an acceleration in 5G cellular network adoptions.

Better customer engagement and an improving cost structure are other major growth drivers. Adoption of 5G beyond mobile is likely to spur demand for memory and storage, particularly in Internet of Things devices. Micron’s near-term profitability, however, is likely to hurt by planned salary hikes. High level of customer inventory in the cloud, graphics and enterprise market remains another concern for Micron.

(You can read the full research report on Micron here >>>)

Shares of Enbridge have gained +11% in the last six months against the Zacks Oil Production and Pipeline industry’s gain of +9.5%. A significant portion of ENB’s earnings is generated from transportation operations, driven by a string of long-term contracts. The Zacks analyst believes that a huge contract base is likely to provide Enbridge stable cash flows in the coming years.

With significant portion of its assets being contracted by shippers for long term, ENB’s business model is less susceptible to oil price volatility. From 2022 through 2024, it expects to generate C$9 billion from midstream growth capital projects. A huge debt exposure, however, remains a concern.

(You can read the full research report on Enbridge here >>>)

Other noteworthy reports we are featuring today include UBS Group AG (UBS), Marvell Technology, Inc. (MRVL) and Weyerhaeuser Company (WY).

Sheraz Mian

Director of Research

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

Walmart (WMT) Gains on E-Commerce Efforts, Hurt by Cost Woes

Micron (MU) Benefits from Growing Memory-Chip Demand

Enbridge (ENB) to Gain From $10B Midstream Growth Projects

Featured Reports

Cost-Saving Efforts Aid UBS Group (UBS) Amid Negative Rates
Per the Zacks analyst, UBS Group's cost-control measures are likely to drive efficiency are encouraging.

Solid Storage & Networking Chip Demand Aid Marvell (MRVL)
Per the Zacks analyst, Marvell is growing on solid demand for its storage and networking chips from accelerated 5G infrastructure deployment and increased adoption of cloud-based storage solutions.

Solid Housing & Operational Excellence Aids Weyerhaeuser (WY)
Per the Zacks analyst, Weyerhaeuser's focus on operational excellence plans, like merchandising for value as well as solid housing market momentum boost the performance.

Improving Top line, Solid Balance Sheet Aid Allstate (ALL)
Per the Zacks analyst, Allstate benefits from a healthy revenue stream, courtesy of a broad product suite and pricing discipline.

Accretive Buyouts Aid FUJIFILM (FUJIY) Amid High Debt Load
Per the Zacks analyst, back-to-back strategic acquisitions and expanding healthcare business are likely to drive FUJIFILM's top-line growth.

NetApp (NTAP) Benefits from Product Portfolio & Acquisitions
Per the Zacks analyst, NetApp's performance is gaining from continued strength in Hybrid Cloud and Public Cloud segments and robust billings growth.

Cleveland-Cliffs (CLF) Gains on Acquisitions & Higher Prices
Per the Zacks analyst, Cleveland-Cliffs will benefit from significant synergies of AK Steel and ArcelorMittal USA acquisitions.

New Upgrades

Exploration Progress, Debt Reduction to Aid Freeport (FCX)
According to the Zacks analyst, Freeport will benefit from its progress in exploration activities to expand production capacity and efforts to deleverage its balance sheet.

Kimco (KIM) Rides Up With Essential, Necessity-Based Tenants
Per the Zacks analyst, Kimco will benefit from a tenant mix focused on essential, necessity-based goods and services. Moreover, balance sheet-strengthening moves will help it to bank on growth scopes.

Adient's (ADNT) Prospects to be Aided by Robust Order Book
The Zacks analyst believes that regular contract wins from legacy automakers as well as pure-play EV startups are set to boost Adient's top-line growth, going forward.

New Downgrades

Omicron-Led Revenue Woes & High Fuel Costs Sting Delta (DAL)
The Zacks analyst is worried about the omicron-induced revenue weakness, which is likely to affect Q122 results. High fuel costs are a downside as well.

Strict Regulations, Aging Facilities Hurt MDU Resources (MDU)
Per the Zacks analyst, MDU Resources might be negatively impacted by cyber-security threats, aging infrastructure, stiff competition, strict government regulations, and seasonality of operations.

Soft Tymlos Performance A Concern For Radius (RDUS)
Per the Zacks analyst, the weak performance of Tymlos is a concern for Radius Health. Moreover, the company is highly dependent on Tymlos for growth, and a slowdown will adversely impact sales.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Walmart Inc. (WMT) : Free Stock Analysis Report
 
UBS Group AG (UBS) : Free Stock Analysis Report
 
Micron Technology, Inc. (MU) : Free Stock Analysis Report
 
Weyerhaeuser Company (WY) : Free Stock Analysis Report
 
Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report
 
Enbridge Inc (ENB) : Free Stock Analysis Report
 
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