Top Stock Reports for Analog Devices, Southern Company and Canadian Pacific Railway

By Judy J. Beasley Last updated Dec 11, 2022

Wednesday, December 7, 2022

Zacks Research Daily features top research results from our team of analysts. Today’s Research Daily features new research reports on 16 major stocks, including Analog Devices, Inc. (ADI), The Southern Co. (SO) and Canadian Pacific Railway Ltd. (CP). These research reports have been handpicked from the approximately 70 reports published today by our team of analysts.

You can see all research reports from today here >>>

Analog Devices’ shares are down -10.6% over the past year compared to the industry decline of -18.3% Zacks Semiconductor – Analog and Mixed. The company faces pandemic-induced supply chain constraints. In addition, the geopolitical tensions caused by the Russian-Ukrainian war are major overhangs.

However, strength in the communication, consumer, industrial and automotive end markets boosted results. The strong demand for high-performance analog and mixed-signal solutions was a tailwind. Strong momentum in the EV space thanks to robust battery management system solutions remains a positive.

Plus, the increasing gains in power design are further positives. The strong momentum of the HEV platform in the cabin electronics ecosystem remains a tailwind. Considering the aforementioned factors, Zacks analysts expect total revenue in the first quarter of fiscal 2023 to grow 15.3% year-over-year.

(You can read the full Analog Devices research report here >>>)

Shares of Southern Company outperformed the Zacks Utility – Electric Power industry over the past year (+5.8% vs -0.8%). The company relies on the demographics of its operating territories, as in a healthy population and employment growth, Southern Company has gradually increased its customer base.

With good rate base growth and constructive regulation, the utility is expected to deliver steady growth in earnings and dividends over the next few years.

However, its high leverage, as well as ongoing time and cost overrun issues on its Vogtle project, are major overhangs. While the power utility holding company’s 58.7% debt ratio limits financial flexibility, its $25 billion Vogtle nuclear plant has already exceeded budget and is years behind schedule. Therefore, Southern Company justifies a cautious attitude on the part of investors.

(You can read the full Southern Company research report here >>>)

Shares of Canadian Pacific Railway have outperformed the Zacks Transportation – Rail industry over the past year (+9.5% vs -11.0%). With the gradual recovery of freight market conditions, freight revenues are increasing. Notably, freight revenue, which accounts for the majority of Canadian Pacific’s revenue, grew 6.7% in the first nine months of 2022. CP’s efforts to reward its shareholders through dividends are also auspicious.

In the third quarter of 2022, CP paid dividends worth C$177 million, up 39.4% year-over-year. Partly because of those headwinds, the title has won over the past year.

However, high operating expenses (up 12% year over year in the first nine months of 2022) continue to weigh on the company’s results. High fuel costs (up 60.7% in the first nine months of 2022) drive operating expenses higher. A high debt ratio also does not bode well for CP, as it implies that the company is aggressively financing its growth with debt.

(You can read the full Canadian Pacific Railway research report here >>>)

Other noteworthy reports we feature today include Mitsubishi UFJ Financial Group, Inc. (MUFG), CME Group Inc. (CME) and UBS Group AG (UBS).

Marc Vickery
Senior Writer

Note: Sheraz Mian leads the equity research department at Zacks and is a well-known expert on overall earnings. He is frequently quoted in the written and electronic press and publishes the weekly Earnings Trends and Revenue overview reports. If you would like to receive an email notification whenever Sheraz publishes a new article, please click here>>>

To read today

Battery management system solutions help Analog Devices (ADI)

Southern Company (SO) driven by the regulated growth of its customer base

Canadian Pacific (CP) Increases Freight Revenue, Costs Everyone

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