Friday, November 22, 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 GE Aerospace (GE), Fomento Economico Mexicano (FMX) and Waste Management, Inc. (WM), as well as a micro-cap stock, Aware, Inc. (AWRE). These research reports have been hand-picked from roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

GE Aerospace’s shares have underperformed the Zacks Transportation - Airline industry over the last six months (+8.1% vs. +16.1%). The Zacks analyst believes that the company has been dealing with high costs and expenses related to certain projects and restructuring activities, which are likely to affect its margins and profitability. Supply-chain disruptions in the defense market continue to take a toll on its operations. Also, foreign exchange headwinds are a cause for concern.

However, global defense budgets, geopolitical tensions, positive airline & airframer dynamics and robust demand for commercial air travel augur well for the company. Also, it has been witnessing strength in its businesses, driven by robust demand for commercial engines, propulsion and additive technologies.

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

Fomento Economico’s shares have underperformed the Zacks Beverages – Soft drinks industry over the past year (-30.4% vs. +2.4%). The Zacks analyst believes that the company’s Health division is dealing with complex, competitive, and regulatory issues in several markets, particularly in Mexico, leading to disappointing returns.

Yet, the company is making massive inroads with its forward strategy that aims for long-term value creation across businesses. Recent expansions via acquisitions in the American market should also help.

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

Shares of Waste Management have outperformed the Zacks Waste Removal Services industry over the past two years (+35.0% vs. +33.3%). Per the Zacks analyst, the company’s core operating initiatives of focused differentiation, continuous improvement, and instilling price and cost discipline have aided. Successful cost-reduction initiatives have also helped it achieve better margins.

However, operating in a highly competitive and consolidated waste industry weighs on the company's top line. National, regional, and local companies give tough competition.

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

Shares of Aware have outperformed the Zacks Internet – Software and Services industry over the past year (-7.9% vs. -9.9%). Per the Zacks analyst, rise in the company’s recurring revenue reflects a shift toward a subscription model and underscores its market expansion and improved financial predictability.

Yet, declining cash reserves, continued net losses, reliance on government contracts and limited market diversification pose significant risks. Also, increasing competition and execution risks in strategic initiatives remain headwinds.

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

Other noteworthy reports we are featuring today include U.S. Bancorp (USB), Constellation Energy Corp. (CEG) and American Electric Power Co., 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>>>