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The Zacks Analyst Blog Amazon, Roche, GE Aerospace, Canterbury Park and NVE

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Chicago, IL – September 9, 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: Amazon.com, Inc. (AMZN - Free Report) , Roche Holding AG (RHHBY - Free Report) , GE Aerospace (GE - Free Report) , Canterbury Park Holding Corp. (CPHC - Free Report) and NVE Corp. (NVEC - Free Report) .

Here are highlights from Monday’s Analyst Blog:

 

Top Analyst Reports for Amazon.com, Roche and GE Aerospace

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 Amazon.com, Inc., Roche Holding AG  and GE Aerospace, as well as two micro-cap stocks Canterbury Park Holding Corp. and NVE Corp. 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 >>>

Amazon.com shares have lost ground lately, along with the rest of its Magnificent 7 peers and other megacap Tech operators, but they have still been strong performers this year (up +13.7% vs. +15.3% for the S&P 500 index. The company is gaining on solid Prime momentum owing to ultrafast delivery services and strong content portfolio. Strengthening relationships with third-party sellers is a positive.

Amazon.com’s expanding global presence and solid momentum among the small and medium businesses, remain a plus. Growing adoption of AWS is aiding Amazon’s cloud dominance. Deepening focus on generative AI is a major plus. Also, improving Alexa skills along with robust smart home products offerings are tailwinds. Growing capabilities in grocery, pharmacy, healthcare and autonomous driving are other positives.

However, macroeconomic challenges remain headwinds. Amazon issued weak third-quarter 2024 revenue guidance due to the changing shopping pattern of consumers, which is a negative.

(You can read the full research report on Amazon.com here >>>)

Shares of Roche have outperformed the Zacks Large Cap Pharmaceuticals industry over the past three months (+22.0% vs. +4.1%). The company's performance in the second quarter and the first half of 2024 was impressive because of the high demand for its drugs and tests.

The second quarter saw an acceleration in growth as total sales were no longer affected by the decline in COVID-19 sales, resulting in very strong sales growth. Consequently, Roche raised its earnings outlook for the full year. Vabysmo, Ocrevus, Evrysdi and Polivy boost growth. Vabysmo has put up a stellar performance against Eylea.

Meanwhile, Roche is also looking to diversify and make inroads in the lucrative obesity market in the wake of declining sales from legacy drugs due to competition from biosimilars. The company’s efforts to develop new drugs are encouraging. The base diagnostics business is also performing well.

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

Shares of GE Aerospace have outperformed the Zacks Transportation - Airline industry over the past six months (+25.1% vs. +7.7%). The company has been witnessing strength in its businesses, driven by robust demand for commercial engines, propulsion and additive technologies.

Rising U.S. & international defense budgets, geopolitical tensions, positive airline & airframer dynamics and robust demand for commercial air travel augur well for the company. GE Aerospace remains committed to making investments to boost growth and provide better services to its customers.

Its portfolio-reshaping actions are likely to unlock values for its shareholders. Its shareholder-friendly policies are encouraging. For 2024, it expects organic revenues to grow in the high-single-digit range from the year-ago level. However, it has been dealing with high costs and expenses related to projects and restructuring activities.

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

Canterbury Park’s shares have underperformed the Zacks Gaming industry over the year-to-date period (-0.6% vs. +6.8%). This microcap company with market capitalization of $100.78 million offers significant long-term revenue potential through diversified projects like an amphitheater, Winners Circle and residential units, driving growth beyond traditional gaming.

Financially stable with $24 million in cash and short-term investments, Canterbury Park can fund growth without debt. Improved EBITDA margins and diversified revenue streams, including pari-mutuel wagering and event hosting, support CPHC’s earnings stability. The company’s vision of a regional destination is progressing, with leasing success indicating solid demand.

However, risks include a 93.6% drop in second-quarter 2024 net income due to a non-recurring gain in 2023, weak casino revenues and substantial losses from equity investments. Increased competition from nearby casinos could impact market share and profitability.

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

Shares of NVE have gained +0.5% over the year-to-date period against the Zacks Electronics - Semiconductors industry’s gain of +16.2%. This microcap company with market capitalization of $367.89 million exhibits strong margins in the fiscal first quarter of 2025, with gross margin rising to 86% and operating margin at 65%, driven by a profitable product mix and direct sales.

The company's increased R&D spending by 26%, especially in wafer-level chip scale packaging aimed at medical and industrial applications, expected to drive new revenue streams. Despite a 24% sales decline due to semiconductor downturns, strong cash flows and a $53 million cash reserve support a steady $1.00 per share dividend. NVE Corporation's focus on spintronic technologies positions it well in high-growth sectors.

However, revenue risks persist with heavy reliance on key customers and competitive pressures. Rising operating expenses and labor market challenges may pressure near-term profitability, while supply-chain vulnerabilities and inventory management issues could impact operational efficiency.

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

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