Tuesday, November 7, 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 Linde plc (LIN), Airbnb, Inc. (ABNB) and Canadian Natural Resources Limited (CNQ). 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 >>>

Linde shares have outperformed the Zacks Chemical - Specialty industry over the year-to-date period (+21.8% vs. +8.8%). The company is making the world more productive by the day with its wide range of applications for its industrial gases. Linde’s primary products in industrial gases include oxygen, which is used as life support in hospitals.

Linde has long-term contracts with on-site customers backed by minimum purchase requirements, thereby securing stable cashflows. In the profitable industrial gas market, the merger of Praxair and Linde has created an efficient player with considerable size advantages. The firm reported strong third-quarter earnings, thanks to higher pricing from the Americas segment.

However, increasing competition for new projects and developments in emerging markets is concerning. The company is extremely vulnerable to uncertainty associated with the slowdown of economic growth, as this could hurt demand for its industrial gases.

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

Shares of Airbnb have outperformed the Zacks Internet - Content industry over the year-to-date period (+38.2% vs. +23.9%). The company’s revenue growth was driven by continuous improvements in Nights and Experiences Booked, enabling Airbnb to witness a positive trend in its Gross Booking Value.

Growing gross nights booked, owing to solid momentum across high-density urban areas and first-time bookers has been a tailwind. Increasing guest demand and continuous recovery in cross-border travel aided the quarterly performance. Strong momentum in active listings, owing to supply growth across all regions, particularly in Asia Pacific and Latin America, has been another positive.

Notably, shares have outperformed the industry year to date. However, greater volatility in travel demand, subjected to macroeconomic trends and geopolitical conflicts, is a concern.

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

Shares of Canadian Natural Resources have outperformed the Zacks Oil and Gas - Exploration and Production - Canadian industry over the year-to-date period (+24.0% vs. +6.7%). The company’s balanced and diverse production mix facilitates long-term value and reduces the risk profile. Canadian Natural’s acquisition of Athabasca Oil Sands project in 2017 has added significant value to its asset base and buoyed the production prospects.

Notably, lower capital needs and improving operational efficiencies have enabled the company to generate significant free cash flow. What’s more, the company remains committed to investor friendly moves by the way of dividend payout and stock buybacks.

However, Canadian Natural is set to face debt maturities each year out till 2027. Further, the C$3.25-billion term loan to fund the Devon Energy asset buy has worsened the company’s debt-to-capital ratio and led to higher interest outgo. The interplay of these factors accounts for the cautious stance.

(You can read the full research report on Canadian Natural Resources here >>>)

Other noteworthy reports we are featuring today include Blackstone Inc. (BX), Waste Management, Inc. (WM) and Constellation Brands, Inc. (STZ).

Director of Research

Sheraz Mian

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>>>