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>>>