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The Zacks Analyst Blog Highlights Visa, AstraZeneca, Disney, FitLife Brands and Utah Medical

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For Immediate Release

Chicago, IL – August 29, 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: Visa Inc. (V - Free Report) , AstraZeneca PLC (AZN - Free Report) , The Walt Disney Co. (DIS - Free Report) , FitLife Brands, Inc. (FTLF - Free Report) and Utah Medical Products, Inc. (UTMD - Free Report) .

Here are highlights from Wednesday’s Analyst Blog:

Top Analyst Reports for Linde, AstraZeneca and Walt Disney Co.

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 Visa Inc. (V - Free Report) , AstraZeneca PLC (AZN - Free Report) and The Walt Disney Co. (DIS - Free Report) , as well as two micro-cap stocks FitLife Brands, Inc. (FTLF - Free Report) and Utah Medical Products, Inc. (UTMD - Free Report) . The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.

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 Visa have gained +4.6% over the year-to-date against the Zacks Financial Transaction Services industry’s gain of +7.9%. The company’s strategic acquisitions and alliances are fostering long-term growth and consistently driving its revenues. Visa, fueled by persistent increases in payments, cross-border volumes and sustained investments in technology, is witnessing significant profit growth.

The ongoing shift to digital payments is advantageous for Visa, with strong domestic volumes supporting its overall performance. A robust cash position enables the company to enhance shareholder value.

However, elevated operating expenses pose margin challenges. It is witnessing a volatile cash volume from the Asia Pacific and CEMEA regions. Consumer spending growth is also drying up. Moreover, rising client incentives will affect its adjusted revenues. As such, the stock warrants a cautious stance.

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

AstraZeneca’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (+32.3% vs. +29.1%). The company has a diverse product portfolio and a global footprint. Its key drugs like Lynparza, Tagrisso, Imfinzi, Fasenra, Ultomiris and Farxiga should keep driving revenues.

AstraZeneca’s pipeline is strong, with important late as well as mid-stage pipeline data readouts lined up. It 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. By 2030, it expects to generate $80 billion in total revenues. However, AstraZeneca’s diabetes franchise faces stiff competition while pricing pressure hurts sales in the respiratory unit.

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

Shares of Walt Disney have outperformed the Zacks Media Conglomerates industry over the year-to-date period (+0.3% vs. +0.1%). The company’s third-quarter fiscal 2024 results reflect growth in Disney+ subscribers and theme park and resort businesses.

Recent attractions like the Frozen theme land at Hong Kong Disneyland and Walt Disney Park in Paris, as well as the Zootopia theme land at Shanghai Disney, are expected to boost the prospects of the theme park business.

At the same time, the company’s declining ad revenues due to fewer impressions have been a headwind for some time now. Disney+’s profitability is expected to be hurt by higher investments in content, which will also increase programming and production costs in the Media and Entertainment Distribution segment. Its leveraged balance sheet remains a concern. Disney+ is facing tough competition from the likes of Netflix and Amazon Prime Video.

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

FitLife Brands’ shares have outperformed the Zacks Medical - Products industry over the year-to-date period (+74.5% vs. +12.7%). This microcap company with market capitalization of $152.62 million have witnessed 14.7% year-over-year revenue increase in second-quarter 2024, driven by a 17.5% rise in wholesale and 13.3% in online sales.

Strategic acquisitions and a shift to online channels, now two-thirds of revenue, boosted margins to 44.8%. Key acquisitions like Mimi’s Rock and MusclePharm contribute to growth, with MusclePharm revenues up 27.3% sequentially and Mimi’s Rock’s gross margin at 48.2%, though integration risks remain. The company’s low net debt of $11.7 million supports financial flexibility.

However, challenges include declining legacy brand revenues, a 2.2% drop in the MRC segment, and heavy reliance on online sales, posing risks if e-commerce trends shift. High debt and competition in a saturated market also pose concerns.

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

Shares of Utah Medical Products have underperformed the Medical - Products industry over the past six months (-0.2% vs. +7.0%). This microcap company with market capitalization of $236.34 million is facing challenges from declining revenues, particularly with the Filshie Clip System and significant sales drops to PendoTECH, a key customer.

Additionally, foreign exchange risks, increased litigation costs and competitive pressures could further impact UTMD’s financial performance, potentially leading to market share erosion. Nevertheless, a strong balance sheet with $89.2 million in cash and no debt as of June 30, 2024, providing flexibility for strategic investments, acquisitions, or shareholder returns.

The global medical devices market is growing, with UTMD well-positioned to benefit due to its diverse product portfolio in obstetrics, gynecology, neonatal care and blood pressure monitoring. The company’s disciplined cost management reduced COGS and operating expenses, supporting financial stability. UTMD’s focus on niche markets offers strategic advantages, although it.

(You can read the full research report on Utah Medical Products here >>>)

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