Wednesday, April 24, 2024

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 Danaher Corp. (DHR), Regeneron Pharmaceuticals, Inc. (REGN) and Palo Alto Networks, Inc. (PANW). 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 >>>

Danaher’s shares have outperformed the Zacks Diversified Operations industry over the past year (+24.0% vs. +3.4%). The company’s stable demand in the academic and applied markets is supporting its Life Sciences unit. The segment has been witnessing positive responses toward its new products. The company’s commitment to return value to shareholders is encouraging.

Synergies from the Abcam acquisition bolster the company’s growth. Through its DBS initiatives, it has been able to reduce the impact of supply-chain constraints and inflationary pressures. However, Danaher is plagued by weakness in the Biotechnology unit due to decreased demand in the bioprocessing business.

Softness in the funding environment and lower underlying activity levels are affecting the high-growth markets’ performance. High debt levels may raise its financial obligations and drain its profitability. Given its international exposure, forex woes are weighing on its top line.

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

Shares of Regeneron Pharmaceuticals have outperformed the Zacks Medical - Biomedical and Genetics industry over the past year (+14.9% vs. -15.2%). The company maintains momentum due to stellar performance by Dupixent, driven by growing demand in the approved indications of atopic dermatitis, asthma, chronic rhinosinusitis with nasal polyposis, eosinophilic esophagitis and prurigo nodularis.

The approval of Eylea HD is also noteworthy, generating incremental revenues. The approval of Libtayo has diversified the portfolio, and label expansion in additional indications is likely to boost Regeneron’s sales.

However, a decline in Eylea sales due to competition is a woe as the drug is the largest contributor to the top line.  Pipeline and regulatory setbacks are additional headwinds. Earnings estimates are static ahead of the quarterly results.

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

Palo Alto Networks’ shares have gained +60.8% over the past year against the Zacks Internet - Software industry’s gain of +64.5%. The company has been benefiting from continuous deal wins and the increasing adoption of its next-generation security platforms, attributable to the rise in the hybrid work environment and the heightened need for stronger security.

PANW’s strong back-to-back quarterly performances reflect its sustained focus on product innovation, a shift in its business model to subscription-based services, platform integration and continued investments in the go-to-market strategy. The normalization of the supply chain is also aiding growth across the Products, Services and Subscription segments.

However, softening IT spending amid macroeconomic headwinds might hurt its near-term prospects. Forex headwinds and higher marketing and sales expenses are likely to continue hurting its profitability. Also, high acquisition-related expenses are denting margins.

(You can read the full research report on Palo Alto Networks here >>>)

Other noteworthy reports we are featuring today include GSK plc (GSK), Workday, Inc. (WDAY) and American Electric Power Company, Inc. (AEP).
 

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>>>