Thursday, May 2, 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 Micron Technology, Inc. (MU), Anheuser-Busch InBev SA/NV (BUD) and Duke Energy Corporation (DUK). 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 >>>

Micron Technology shares were in line with the Zacks Semiconductor Memory industry over the year-to-date period (+28.7% vs. +28.7%). The company is benefiting from improved market conditions, robust sales executions and strong growth across multiple business units.

The positive impact of inventory improvement in the data center, as well as stabilization in other markets, such as automotive, industrial and others, are contributing to top-line growth. It anticipates the pricing of DRAM and NAND chips will keep increasing next year, thereby improving its revenues.

The pricing benefits will primarily be driven by rising AI servers, causing a scarcity in the availability of cutting-edge DRAM and NAND supply. Also, 5G adoption in the Internet of Things devices and wireless infrastructure is likely to spur demand for memory and storage. However, the United States and China’s tit-for-tat trade war is a major threat to the company.

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

Shares of Anheuser-Busch have outperformed the Zacks Beverages - Alcohol industry over the past six months (+1.0% vs. -7.5%). The company benefits from strong consumer demand for its brands, pricing actions, ongoing premiumization, and other revenue management initiatives.

BUD’s relentless execution, investment in brands and accelerated digital transformation aided organic sales growth in fourth-quarter 2023. The expansion of the Beyond Beer portfolio, and investments in B2B platforms, e-commerce and digital marketing bode well. For 2024, AB InBev expects EBITDA growth 4-8%, in line with its medium-term outlook.

However, the company continues to witness elevated costs stemming from commodity cost inflation and investments to support long-term growth, which are weighing on EBITDA margin. Also, SG&A expenses rose 4.3% on an organic basis in the fourth quarter.

(You can read the full research report on Anheuser-Busch here >>>)

Duke Energy shares have outperformed the Zacks Utility - Electric Power industry over the past six months (+13.0% vs. +6.6%). The company remains a premier utility service provider that focuses on expanding its scale of operations and implementing modern technologies at its facilities.

During the 2024-2028 period, the company plans to investment $73.4 billion to strengthen its grid and expand its renewable energy portfolio. This should boost its load growth. As of Dec 31, 2023, Duke Energy reduced carbon emission by 48% from 2005 levels.

However, the company holds a weak solvency position. Duke Energy’s unfavorable financial ratios further make one skeptical about its financial position. Its EV/Sales ratio came in higher than the industry level. Over the long term, the continued adoption of more efficient housing might have a negative impact on average usage per residential customer.

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

Other noteworthy reports we are featuring today include Enterprise Products Partners L.P. (EPD), ON Semiconductor Corporation (ON) and STERIS plc (STE).

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>>>