Yahoo Finance Top Research Reports for Chevron, Novo Nordisk & Amgen
Tuesday, February 14, 2023
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 Chevron Corporation (CVX), Novo Nordisk A/S (NVO) and Amgen Inc. (AMGN). 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 Chevron have gained +25.1% over the past year against the Zacks Oil and Gas - Integrated - International industry’s gain of +27.3%. The company is considered one of the best-placed global integrated oil firms to achieve sustainable production ramp-up.
America’s No. 2 energy firm’s existing project pipeline is among the best in the industry, thanks to its premier position in the lucrative Permian Basin. As a reflection of these positives, we expect CVX’s EPS to jump 132% in 2022.
However, Chevron was not immune to the commodity price crash of 2020, forcing it to cut spending substantially. The company’s high oil price sensitivity is a concern too. Moreover, the supermajor’s 10-year reserve replacement ratio of 100% is indicative of its inability to replace the amount of oil and gas produced.
(You can read the full research report on Chevron here >>>)
Shares of Novo Nordisk have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+45.8% vs. +14.2%). The company has one of the broadest diabetes portfolios in the industry. Ozempic and Rybelsus have been performing well in the market. Drug sales have been gaining and maintaining momentum.
Label expansion of the existing drugs is likely to boost sales further in the days ahead. Ozempic is off to a solid start since its launch and will drive growth for the company. The launch of Rybelsus also looks impressive. The supply issues with Wegovy are resolved now. However, the patent expiry on some of the products in Novo Nordisk’s portfolio remains a woe.
(You can read the full research report on Novo Nordisk here >>>)
Amgen shares have outperformed the Zacks Medical - Biomedical and Genetics industry over the past year (+8.6% vs. -7.7%). The company beat Q4 estimates for earnings and sales. While key drugs like Prolia, Repatha and Evenity are driving sales, increasing competition for its legacy products is hurting the same. Amgen is rapidly advancing its robust pipeline.
The acquisition of ChemoCentryx added a strategic new growth asset, Tavneos, to Amgen’s portfolio. Amgen boasts a strong biosimilars portfolio with potential new products expected to drive long-term growth.
However, increased pricing headwinds and competitive pressure are hurting sales of many of Amgen’s products including some biosimilars. Increasing biosimilar competition for some legacy products and weakness in key brands like Otezla and Lumakras, create potential revenue headwinds.
(You can read the full research report on Amgen here >>>)
Other noteworthy reports we are featuring today include Starbucks Corporation (SBUX), General Dynamics Corporation (GD) and ResMed Inc. (RMD).
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Chevron (CVX) to Gain from Massive Permian Acreage
Strong Diabetes Portfolio, Diversification Boost Novo (NVO)
Amgen (AMGN) Key Drugs Drive Sales Amid Biosimilar Woes
Featured Reports
Store Growth Aids Starbucks (SBUX), Dismal China Comps Hurts
Per the Zacks analyst, Starbucks' rapid unit growth, best-in-class loyalty program and digital offerings bode well. However, dismal performance in China hurts the company's performance.
Order Flow Aids General Dynamics (GD) Amid Supply Challenges
Per the Zacks Analyst, solid order flow for its products bolsters General Dynamics' revenue growth prospects. Yet COVID-19 led supply chain challenges may continue to hurt its growth.
Digital Health Demand Aids ResMed (RMD) Amid Stiff Rivalry
The Zacks analyst is impressed with ResMed's increased demand for its digital health solutions globally. Yet, Stiff rivalry remains a concern.
High Demand Aids SBA Communications (SBAC) Amid 5G Hype
Per the Zacks Analyst, SBA Communications to benefit from the high demand for its wireless infrastructure assets amid 5G deployment efforts by carriers. However, customer concentration is a key woe.
Corning (GLW) Rides on Healthy 5G, Fiber Optics Traction
Per the Zacks analyst, Corning is likely to benefit from solid traction in 5G, broadband and cloud computing businesses, while multiple factors will likely drive growth in the fiber optic business.
Yum China (YUMC) Banks on Digital Initiatives, High Costs Ail
Per the Zacks analyst, Yum China's focus on digital marketing and high-grade delivery strategy adoption bode well. However, high costs stemming from labor remain concerns.
Match Group (MTCH) Rides on Solid Tinder Adoption & Buyouts
Per the Zacks analyst, Match Group is benefiting from increasing subscriber base, driven by solid contribution from Tinder. Further, synergies from OkCupid and Hinge acquisitions are a tailwind.
New Upgrades
Alaska Air (ALK) Prospects Solid on Upbeat Air Travel Demand
Upbeat air-travel demand is driving Alaska Air's top line. The Zacks analyst also finds the company's fleet-modernization initiatives very encouraging.
Maximus (MMS) Gains From Connect Assist & VES Acquisitions
Per the Zacks Analyst, acquisition of Connect Assist fortified Maximus's customer service and digital capabilities. The VES acquisition fast-tracked the company's clinical evolution.
Higher Jet Engine Product Demand, Transformation Aid ATI
Per the Zacks analyst, higher demand for jet engine products will drive results in ATI's HPMC segment. It will also gain from actions to improve cost structure through transformation efforts.
New Downgrades
Pacira's (PCRX) Dependence on Exparel For Growth A Concern
Per the Zacks Analyst, Pacira's overdependence on lead drug Exparel for generating revenue is a concern. The lack of other promising candidates also remains a headwind.
Columbia Sportswear (COLM) Troubled by High SG&A Expenses
Per the Zacks analyst, Columbia Sportswear is battling high SG&A expenses, which rose 5% in fourth quarter. In 2023, SG&A expenses are likely to be 38.3-39% of sales, up from 37.7% recorded in 2022.
High Expenses, Leverage Concern First American (FAF)
Per the Zacks analyst, First American's increase in higher personnel costs and operating expenses induces higher expenses that weigh on margin expansion. High leverage induces rise in interest expense
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General Dynamics Corporation (GD) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
Novo Nordisk A/S (NVO) : Free Stock Analysis Report
Amgen Inc. (AMGN) : Free Stock Analysis Report
Starbucks Corporation (SBUX) : Free Stock Analysis Report
ResMed Inc. (RMD) : Free Stock Analysis Report
