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The Zacks Analyst Blog Highlights AstraZeneca, Qualcomm, FedEx, American International and Baker Hughes

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For Immediate Release

Chicago, IL – May 6, 2024 – 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: AstraZeneca PLC (AZN - Free Report) , Qualcomm Inc. (QCOM - Free Report) , FedEx Corp. (FDX - Free Report) , American International Group, Inc. (AIG - Free Report) and Baker Hughes Co. (BKR - Free Report) .

Here are highlights from Friday’s Analyst Blog:

Top Analyst Reports for AstraZeneca, Qualcomm and FedEx

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 AstraZeneca PLC, Qualcomm Inc. and FedEx Corp. 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 >>>

Shares of AstraZeneca have gained +4.1% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +20.4%. The company’s key drugs like Lynparza, Tagrisso, Imfinzi, Fasenra, Ultomiris and Farxiga should keep driving revenues. AstraZeneca’s pipeline is strong.

AstraZeneca has also been engaged in external acquisitions and strategic collaborations to boost its pipeline while investing in geographic areas of high growth like emerging markets. Backed by its new products and pipeline drugs, AstraZeneca believes it can post industry-leading top-line growth in the 2025-2030 period.

However, AstraZeneca’s diabetes franchise faces stiff competition while pricing pressure hurts sales in the respiratory unit. Estimates are stable ahead of the Q1 earnings release. The company has a mixed record of earnings surprises in the recent quarters.

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

Qualcomm shares have outperformed the Zacks Wireless Equipment industry over the past year (+73.3% vs. +35.2%). The company reported relatively healthy second-quarter fiscal 2024 results, with the bottom and top lines beating the respective Zacks Consensus Estimate, driven by healthy demand trends in Android handsets and automotive businesses.

Qualcomm is likely to benefit from the launch of Snapdragon 7 Gen 3 chipsets with advanced AI features for mid-range smartphones and Snapdragon 8s Gen 3 mobile platform for Android flagship smartphones. Healthy 5G traction and Snapdragon Digital Chassis platform are tailwinds. It is focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor firm for the intelligent edge.

However, soft demand trends and elevated inventory levels are concerns. Rising geopolitical conflicts and high debt burden are other headwinds. Softness in IoT business is another challenge.

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

Shares of FedEx have outperformed the Zacks Transportation - Air Freight and Cargo industry over the past year (+18.1% vs. -3.3%). The company’s efforts to reward shareholders through dividends and buybacks are encouraging. FDX looks to repurchase $2.5 billion of common stock and pay $1.3 billion in dividends during fiscal 2024. FDX's liquidity position is also impressive.

However, it continues to struggle due to the normalization of volume and pricing trends in the post-COVID era. To navigate the weak business environment, FDX is cutting costs. Driven by its cost-saving plan, which is expected to accelerate going forward, operating expenses are declining.

DRIVE initiatives are likely to result in $4 billion cost savings by 2025. For fiscal 2024, FedEx expects revenues to decline in the low single digits from fiscal 2023 actuals due to weakness pertaining to package volumes.

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

Other noteworthy reports we are featuring today include American International Group, Inc. and Baker Hughes Co.

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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.

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