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The Zacks Analyst Blog Highlights Honeywell International, Humana, Keurig Dr Pepper, NextEra Energy and The Coca-Cola
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For Immediate Release
Chicago, IL – July 11, 2023 – 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: Honeywell International Inc. (HON - Free Report) , Humana Inc.'s (HUM - Free Report) , Keurig Dr Pepper Inc. (KDP - Free Report) , NextEra Energy Inc. (NEE - Free Report) and The Coca-Cola Co. (KO - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Buy 5 Underperformers of 1H23 That Are Set to Roll
Wall Street had an impressive first half 2023 after a disappointing 2022. Major stock indexes achieved several milestones during this period. The S&P 500 and the Nasdaq Composite exited the bear market and formed a new bull market in first-half 2023. The S&P 500 recorded its best half in four years while the Nasdaq Composite posted its best first-half in 40 years.
Consequently, most of the stocks surged during this period. This was a reversal from 2022, when most of the U.S. stocks plummeted as the pandemic-era fiscal incentives were withdrawn and the Fed pursued tight monetary control with rigorous increases in the benchmark interest rate.
As a result, Wall Street started 2023 with an overall undervaluation of equity markets. The steady decline in the inflation rate from its peak in June 2022 and the Fed's reduction of the magnitude of interest rate hike also favored U.S. stock markets.
However, several stocks did not participate in the dream rally of first-half 2023. Many of these stocks are set to roll in the second half. At this stage, it should be prudent to invest in such stocks with a favorable Zacks Rank.
Our Top Picks
We have narrowed our search to five U.S. corporate bigwigs (market capital >$40 billion) with negative returns in stock prices in the first half of 2023. These stocks have strong potential for the rest of 2023. Each of our picks carries a Zacks Rank #2 (Buy). You can seethe complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Honeywell International Inc. is benefiting from recovery in commercial flight hours and strength in advanced materials and UOP businesses. Solid operational execution, pricing actions and cost-control measures continue to drive HON's top line. The company's bullish forecast for 2023 holds promise. HON's deal to acquire Compressor Controls will be beneficial going forward.
Honeywell International has an expected revenue and earnings growth rate of 3.2% and 3.6%, respectively, for the current quarter (ending September 2023). The Zacks Consensus Estimate for current-quarter earnings has improved 0.1% over the last 30 days.
Humana Inc.'s Medicaid business benefits from several contract wins and renewals, thereby contributing to its top line. Strategic buyouts and alliances place HUM well for growth in the future. HUM's revenues for 2023 are expected within $104.4-$106.4 billion.
Solid contributions from the Insurance and CenterWell segments bode well for HUM. We expect Medicaid revenues to be $7.6 billion in 2023. Management estimates 2023 EPS to be at least $28.25, reflecting at least 11.9% growth year over year.
Humana has an expected revenue and earnings growth rate of 11.3% and 11.8%, respectively, for the current quarter (ending September 2023). The Zacks Consensus Estimate for current-quarter earnings has improved 0.4% over the last seven days.
Keurig Dr Pepper Inc. posted first-quarter 2023 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Both metrics improved year over year. Results have gained from continued brand strength and significant pricing.
KDP has been witnessing continued momentum in the Refreshment Beverages segment for a long time. KDP witnessed market share expansion above 88% of its cold beverage portfolio. This mainly reflected strength in CSDs, seltzers, energy, apple juice, coconut waters and fruit drinks.
Keurig Dr Pepper has an expected revenue and earnings growth rate of 4.6% and 10.9%, respectively, for the current quarter (ending September 2023). The Zacks Consensus Estimate for current-quarter earnings has improved 2% over the last seven days.
NextEra Energy Inc. continues to expand its operations through organic projects and strategic acquisitions. NEE has many renewable projects in its backlog and their completion will reduce emissions. The merger of Gulf Power and FPL strengthens NEE's position in Florida.
FPL's customer base is expanding as Florida's economy improves and continues to boost demand for its services. NextEra has ample liquidity to meet its near-term debt obligations and efficient debt management acts as a tailwind. NEE is expanding its operations in the water space through acquisition.
NextEra Energy has an expected revenue and earnings growth rate of 10.4% and 5.9%, respectively, for the current quarter (ending September 2023). The Zacks Consensus Estimate for current-quarter earnings has improved 5% over the last 60 days.
The Coca-Cola Co. has benefited from the continued momentum in its business. Sales have gained from revenue growth across its operating segments, aided by an improved price/mix and a rise in concentrate sales. KO is poised to gain from innovations and accelerating digital investments. KO provided an upbeat guidance for 2023.
The Coca-Cola has an expected revenue and earnings growth rate of 4.7% and 1.5%, respectively, for the current quarter (ending September 2023). The Zacks Consensus Estimate for current-quarter earnings has remained the same over the last 60 days.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Honeywell International, Humana, Keurig Dr Pepper, NextEra Energy and The Coca-Cola
For Immediate Release
Chicago, IL – July 11, 2023 – 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: Honeywell International Inc. (HON - Free Report) , Humana Inc.'s (HUM - Free Report) , Keurig Dr Pepper Inc. (KDP - Free Report) , NextEra Energy Inc. (NEE - Free Report) and The Coca-Cola Co. (KO - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Buy 5 Underperformers of 1H23 That Are Set to Roll
Wall Street had an impressive first half 2023 after a disappointing 2022. Major stock indexes achieved several milestones during this period. The S&P 500 and the Nasdaq Composite exited the bear market and formed a new bull market in first-half 2023. The S&P 500 recorded its best half in four years while the Nasdaq Composite posted its best first-half in 40 years.
Consequently, most of the stocks surged during this period. This was a reversal from 2022, when most of the U.S. stocks plummeted as the pandemic-era fiscal incentives were withdrawn and the Fed pursued tight monetary control with rigorous increases in the benchmark interest rate.
As a result, Wall Street started 2023 with an overall undervaluation of equity markets. The steady decline in the inflation rate from its peak in June 2022 and the Fed's reduction of the magnitude of interest rate hike also favored U.S. stock markets.
However, several stocks did not participate in the dream rally of first-half 2023. Many of these stocks are set to roll in the second half. At this stage, it should be prudent to invest in such stocks with a favorable Zacks Rank.
Our Top Picks
We have narrowed our search to five U.S. corporate bigwigs (market capital >$40 billion) with negative returns in stock prices in the first half of 2023. These stocks have strong potential for the rest of 2023. Each of our picks carries a Zacks Rank #2 (Buy). You can seethe complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Honeywell International Inc. is benefiting from recovery in commercial flight hours and strength in advanced materials and UOP businesses. Solid operational execution, pricing actions and cost-control measures continue to drive HON's top line. The company's bullish forecast for 2023 holds promise. HON's deal to acquire Compressor Controls will be beneficial going forward.
Honeywell International has an expected revenue and earnings growth rate of 3.2% and 3.6%, respectively, for the current quarter (ending September 2023). The Zacks Consensus Estimate for current-quarter earnings has improved 0.1% over the last 30 days.
Humana Inc.'s Medicaid business benefits from several contract wins and renewals, thereby contributing to its top line. Strategic buyouts and alliances place HUM well for growth in the future. HUM's revenues for 2023 are expected within $104.4-$106.4 billion.
Solid contributions from the Insurance and CenterWell segments bode well for HUM. We expect Medicaid revenues to be $7.6 billion in 2023. Management estimates 2023 EPS to be at least $28.25, reflecting at least 11.9% growth year over year.
Humana has an expected revenue and earnings growth rate of 11.3% and 11.8%, respectively, for the current quarter (ending September 2023). The Zacks Consensus Estimate for current-quarter earnings has improved 0.4% over the last seven days.
Keurig Dr Pepper Inc. posted first-quarter 2023 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Both metrics improved year over year. Results have gained from continued brand strength and significant pricing.
KDP has been witnessing continued momentum in the Refreshment Beverages segment for a long time. KDP witnessed market share expansion above 88% of its cold beverage portfolio. This mainly reflected strength in CSDs, seltzers, energy, apple juice, coconut waters and fruit drinks.
Keurig Dr Pepper has an expected revenue and earnings growth rate of 4.6% and 10.9%, respectively, for the current quarter (ending September 2023). The Zacks Consensus Estimate for current-quarter earnings has improved 2% over the last seven days.
NextEra Energy Inc. continues to expand its operations through organic projects and strategic acquisitions. NEE has many renewable projects in its backlog and their completion will reduce emissions. The merger of Gulf Power and FPL strengthens NEE's position in Florida.
FPL's customer base is expanding as Florida's economy improves and continues to boost demand for its services. NextEra has ample liquidity to meet its near-term debt obligations and efficient debt management acts as a tailwind. NEE is expanding its operations in the water space through acquisition.
NextEra Energy has an expected revenue and earnings growth rate of 10.4% and 5.9%, respectively, for the current quarter (ending September 2023). The Zacks Consensus Estimate for current-quarter earnings has improved 5% over the last 60 days.
The Coca-Cola Co. has benefited from the continued momentum in its business. Sales have gained from revenue growth across its operating segments, aided by an improved price/mix and a rise in concentrate sales. KO is poised to gain from innovations and accelerating digital investments. KO provided an upbeat guidance for 2023.
The Coca-Cola has an expected revenue and earnings growth rate of 4.7% and 1.5%, respectively, for the current quarter (ending September 2023). The Zacks Consensus Estimate for current-quarter earnings has remained the same over the last 60 days.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.