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The Zacks Analyst Blog Highlights: Netflix, AstraZeneca, Union Pacific, NextEra Energy and Estee Lauder

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For Immediate Release

Chicago, IL – July 21, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Netflix (NFLX - Free Report) , AstraZeneca (AZN - Free Report) , Union Pacific (UNP - Free Report) , NextEra Energy (NEE - Free Report) and Estee Lauder (EL - Free Report) .

Here are highlights from Monday’s Analyst Blog:

Top Analyst Reports for Netflix, AstraZeneca and Union Pacific

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 Netflix, AstraZeneca and Union Pacific. 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 >>>

Netflix shares have outperformed the Zacks Broadcast Radio and Television industry over the past year (+58.7% vs. +15.2%), though the stock has lost some ground following last week's quarterly release. The Zacks analyst believes that rising competition from Apple TV+, Amazon prime video, HBO Max, Disney+, TikTok is a major headwind. Netflix’s leveraged balance sheet and higher streaming obligation is a concern. 

However, the company is dominating the streaming space, courtesy of its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content and an expanding international footprint.

However, Netflix expects subscriber growth to decline in the second half of 2020 due to less demand. Moreover, absence of new seasons of popular shows like Money Heist and Stranger Things is expected to affect subscriber growth.

Shares of AstraZeneca have gained +20.3% over the past six months against the Zacks Large Cap Pharmaceuticals industry’s rise of +0.7%. The Zacks analyst believes that AstraZeneca’s products like Nexium, Crestor and Seroquel are facing generic competition, which is hurting sales.

The diabetes franchise also faces stiff competition while pricing pressure is hurting sales in the respiratory unit. Also, the coronavirus outbreak may hurt its profits in 2020. Nonetheless, AstraZeneca’s newer drugs, mainly cancer medicines Lynparza, Tagrisso and Imfinzi, should keep driving revenues in 2020.

Its pipeline is strong with an abundance of pipeline catalysts lined up for 2020. Several launches are underway across each of the therapeutic areas. Cost-cutting efforts should drive earnings. The company has a mixed record of earnings surprises in the recent quarters. Estimates have gone up ahead of Q2 earnings release.

Union Pacific shares have gained +25.5% over the past three months against the Zacks Rail industry’s rise of +24.8%. The Zacks analyst expects Union Pacific's second-quarter 2020 results, scheduled to be released on Jul 23, to be affected severely by low volumes in these coronavirus-ravaged times.

Due to coronavirus-induced supply-chain disruptions and closure of the U.S. automotive plants, overall volumes are likely to have declined in the to-be-reported quarter. In fact, second-quarter volumes are expected to plunge nearly 20%. Weakness in the Bulk, Premium and Industrial units is likely to have weighed on the overall volume picture as well.

However, efforts to control costs, courtesy of the precision scheduled railroading operating plan, are positive, particularly, in the light of revenue concerns. The company's ability to generate free cash flow is also a boon. Further, the uptick in e-commerce demand during the pandemic is encouraging.

Other noteworthy reports we are featuring today include NextEra Energy and Estee Lauder.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.

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