Top Research Reports for Merck, Intel & MercadoLibre
Tuesday, March 21, 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 Merck & Co., Inc. (MRK), Intel Corporation (INTC) and MercadoLibre, Inc. (MELI). 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 Merck have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+33.5% vs. +2.2%). The company’s products like Keytruda and Gardasil have been driving sales. With continued label expansion into new indications & early-stage settings, Keytruda is expected to remain a key top-line driver.
Animal health and vaccine products are core growth drivers. Merck boasts a strong cancer pipeline, including Keytruda, which should drive long-term growth.
However, generic competition for several drugs and rising competitive pressure, mainly on the diabetes franchise, will continue to be overhangs on the top line. There are concerns about Merck’s ability to grow its non-oncology business ahead of Keytruda’s loss of exclusivity later in the decade.
(You can read the full research report on Merck here >>>)
Intel’s shares have underperformed the Zacks Semiconductor - General industry over the past year (-39.8% vs. -9.7%). The company is facing challenging macroeconomic environment, uncertain business conditions and softening demand trends are likely to remain an overhang on Intel’s performance. In addition, production delays remain a concern.
Imposition of fresh lockdown restrictions in some markets, forex woes and high debt burden are other headwinds. Intensifying competition, inflated raw material costs and signs of market saturation are worrisome.
However, Intel is gaining rapid strides in the data center business with integrated solutions that are highly competitive in prices. The company is also focusing on developing a complete product range targeting different segments of the market. Healthy traction from Mobileye’s technologies related to cameras, in-car networking, sensor-chips, roadway mapping, cloud software, machine learning and data management are tailwinds.
(You can read the full research report on Intel here >>>)
Shares of MercadoLibre have outperformed the Zacks Internet - Commerce industry over the past six months (+39.2% vs. -9.7%). The company is benefiting from strength in the commerce and fintech businesses. Robust product offerings and credit portfolio expansion are respectively driving the company’s commerce and fintech revenues.
Further, robust mobile-point-of-sale business and growing adoption of MercadoPago are driving the total payment volume growth of the company. Our estimate suggests that the total payment volume is likely to witness a 30% rise in the current year from the last year’s figure.
Also, rapid adoption of Mobile Wallet remains a positive. Further, robust shipments growth via MercadoEnvios is another positive. However, mounting expenses related to warehousing, free shipping subsidies and mPOS discounts remain overhangs.
(You can read the full research report on MercadoLibre here >>>)
Other noteworthy reports we are featuring today include The Travelers Companies, Inc. (TRV), Public Service Enterprise Group Incorporated (PEG) and Halliburton Company (HAL).
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
Keytruda to Remain Merck's (MRK) Key op Line Driver
Intel (INTC) Rides on Solid Mobileye, Data Center Business
MercadoLibre (MELI) Gains From Total Payment Volume Growth
Travelers' (TRV) Auto & Homeowners Aids, Cat Loss Ails
Per the Zacks analyst, Travelers is set to grow on the continued progress and growth at the profitable agency auto and homeowners business. However, exposure to cat loss induces earnings volatility.
Solid Investments Aid PSEG (PEG) Growth, Weak Solvency Woes
Per the Zacks analyst, Public Service Enterprise Group's, also known as PSEG, consistent investments in infrastructure projects may aid its growth. Yet, its weak solvency position remains a bottleneck
Halliburton (HAL) to Benefit from North American Exposure
The Zacks analyst believes that Halliburton can take advantage of the tight fundamentals of the North American land drilling space through its market-leading pressure pumping operations.
Upbeat Air-Travel Demand Boosts Delta (DAL), High Costs Hurt
Improved air-travel demand, particularly on the domestic front is driving Delta's top line. Escalated fuel costs are, however, limiting bottom-line growth.
High Retail Demand, Prudent Buyouts Aid Federal Realty (FRT)
Per the Zacks Analyst, Federal Realty to benefit from robust demand for its premium portfolio of retail assets and strategic buyouts. However, e-commerce adoption and higher interest rates are woes.
Solid Membership Growth Aid Planet Fitness (PLNT), Cost High
Per the Zacks analyst, Planet Fitness is benefitting from solid membership growth buoyed by marketing and promotional offerings. However, supply chain issues and inflationary pressures are concerns.
A Solid Product Suite Continues to Aid QuidelOrtho (QDEL)
The Zacks analyst is upbeat about QuidelOrtho's strong product portfolio despite its operation in a highly competitive industry and market segment.
Allegion Americas Unit Aids Allegion (ALLE) Amid Forex Woes
Per the Zacks analyst, Allegion's Allegion Americas segment is benefiting from strength in non-residential, residential and electronics end markets. However, forex woes are an added concern.
Commercial Foodservice Equipment Group Aids Middleby (MIDD)
Per the Zacks analyst, solid traction of Middleby's Commercial Foodservice Equipment Group unit, fueled by Digital automation (IoT) and product innovation, will continue to lend momentum.
Haemonetics (HAE) Thrives on Vascular Closure Business
The Zacks analyst is impressed with Haemonetics growth within Vascular Closure business led by converting new electrophysiology accounts and increasing its market share in the United States.
Eni (E) to Suffer From Lower Hydrocarbon Production Volumes
Per the Zacks analyst, Eni's declining production, despite a favorable commodity price scenario, is hurting the company's overall business. Also, rising exploration expenses are concerning.
TreeHouse Foods (THS) Troubled by Inflated Cost of Inputs
Per the Zacks analyst, TreeHouse Foods is troubled by cost inflation. In the fourth quarter of 2022, the gross margin was somewhat affected by costs associated with labor and supply-chain constraints.
Teradyne (TER) Suffers From Weak Momentum in Test Business
Per the Zacks analyst, sluggish system-on-a-chip and wireless test demand due to declining shipments of smartphones and compute products, is hurting the performance of Teradyne's Test business.
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Intel Corporation (INTC) : Free Stock Analysis Report
Halliburton Company (HAL) : Free Stock Analysis Report
Public Service Enterprise Group Incorporated (PEG) : Free Stock Analysis Report
Merck & Co., Inc. (MRK) : Free Stock Analysis Report
The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report
MercadoLibre, Inc. (MELI) : Free Stock Analysis Report
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