Yahoo Finance Top Research Reports for Novo Nordisk, Salesforce & Comcast
Thursday, April 20, 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 Novo Nordisk A/S (NVO), Salesforce, Inc. (CRM) and Comcast Corp. (CMCSA). 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 >>>
Novo Nordisk’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+45.1% vs. +10.5%). The company has one of the broadest diabetes portfolios in the industry. Ozempic and Rybelsus have been performing well in the market. Saxenda and Wegovy sales have been gaining and maintaining momentum. Label expansion of the diabetes drugs is likely to further boost sales.
The supply issues with Wegovy have been resolved, which led to a sales increase in the first quarter of 2023. Novo upped its full-year guidance, based on this encouraging Wegovy growth trend. The company’s diversifying efforts to develop new treatments are reassuring.
However, the patent expiry on some of the products in Novo Nordisk’s portfolio remains a concern. Estimates have improved ahead of the first quarter earnings release. Novo has a mixed record of earnings surprises in recent quarters.
(You can read the full research report on Novo Nordisk here >>>)
Shares of Salesforce have outperformed the Zacks Computer - Software industry over the past year (+6.3% vs. +3.3%). The company is benefiting from a robust demand environment as customers are undergoing a major digital transformation. The rapid adoption of its cloud-based solutions is driving demand for its products.
Sustained focus on introducing more aligned products as per customer needs is driving its top-line. Continued deal wins in the international market is another growth driver. The acquisition of Slack would position the company to be a leader in enterprise team collaboration solution space and better compete with Microsoft’s Teams product.
The Zacks analyst expect CRM revenues to grow at a CAGR of 11.2% through fiscal 2024-2026. However, stiff competition and unfavorable currency fluctuations are concerns. Challenging macroeconomic environment might hurt its growth prospects in the near-term.
(You can read the full research report on Salesforce here >>>)
Shares of Comcast have outperformed the Zacks Cable Television industry over the past six months (+26.7% vs. +16.6%). The company is benefiting from a growing wireless subscriber base as witnessed in the third quarter. Broadband user base increased in the reported quarter. Comcast’s plan to transition to DOCSIS 4.0 is noteworthy.
The technology will help it in expanding much faster and at a lower cost compared to competitors. Recovery in its Park and Movie business bodes well for Comcast’s profitability. Its streaming service Peacock is a key catalyst in driving broadband sales. Strong free cash flow generation ability is noteworthy.
However, Comcast persistently suffers from video-subscriber attrition due to cord-cutting. Moreover, broadband prospects are suffering from increased competition from fixed wireless as well as fiber. Additionally, a leveraged balance sheet is a major concern.
(You can read the full research report on Comcast here >>>)
Other noteworthy reports we are featuring today include AstraZeneca PLC (AZN), Honeywell International Inc. (HON) and The Progressive Corp. (PGR).
Mark Vickery
Senior Editor
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
Wegovy, Ozempic Growth Trends Boosts Novo Nordisk (NVO)
Digital Transformation and Acquisitions Aid Salesforce (CRM)
Wireless Subscriber Gain Drives Comcast's (CMCSA) Prospects
Featured Reports
Cancer Drugs Aid AstraZeneca (AZN) Sales; Pipeline Strong
The Zacks analyst says that AstraZeneca's cancer drugs, Lynparza, Tagrisso and Imfinzi, should drive revenues. Its pipeline is strong with several phase III data readouts lined up for 2023.
Aerospace Unit to Aid Honeywell (HON) Amid Supply Chain Woes
Per the Zacks analyst, strength in the Aerospace unit due to strong commercial aftermarket demand should drive Honeywell's growth. However, supply chain disruptions raise concerns for the company.
Progressive's (PGR) Solid Policies in Force Aid, Cat Loss Ail
Per the Zacks analyst, Progressive is set to grow on, solid policies in force, competitive rates and leadership position. However, cat loss exposure inducing underwriting volatility ails.
SLB Likely to Gain From Increased Oilfield Service Demand
SLB anticipates another year of margin growth from increased service pricing since its overall operations see broad-based expansion. Yet, its aggressive capital budget concerns the Zacks analyst.
Paychex (PAYX) Gains From Flock Buyout, Rising Costs Ail
Per the Zacks analysts, the Flock acquisition has brought a benefits administration software capable of delivering a suite of digital services to Paychex's portfolio. Rising expenses remain a concern.
Expanding Footprint Aid SolarEdge (SEDG) Amid Supply Issues
Per the Zacks Analyst, SolarEdge may continue to witness strong demand and growth momentum with expanding footprint. Yet, component shortages due to supply-chain issues may impact its operations.
Neogen (NEOG) Food Safety Arm Drives Growth, Macro Woes Stay
The Zacks analyst is impressed with a robust growth within Neogen's Food Safety arm banking on several long-term secular tailwinds. Yet, Animal Safety is impacted by the ongoing macroeconomic issues.
New Upgrades
Infrastructure Solution Demand, Buyouts Aid Quanta (PWR)
Per the Zacks analyst, more demand for infrastructure solutions, aiding energy-transition efforts and modernization, will drive growth for Quanta. Also, strategic buyouts will expand its market share
Lamb Weston (LW) Benefits From Strategic Pricing Actions
Per the Zacks analyst, Lamb Weston is gaining on robust pricing actions. In the fiscal third quarter, price/mix increased 31%, reflecting gains from pricing actions in its core business units.
Cactus (WHD) Banks on Wellhead and Production Equipment
The Zacks analyst likes Cactus since the company has been witnessing higher sales of its wellhead and production-related equipment, thanks to favorable drilling activity.
New Downgrades
ADTRAN (ADTN) Plagued by Stiff Competition, High Operating Costs
Per the Zacks analyst, intense competition, rising operating expenses, supply chain disruptions, high R&D costs and a volatile geopolitical environment are likely to strain ADTRAN's margins.
Higher Natural Gas and Input Costs Ail Nutrien (NTR)
Per the Zacks analyst, higher natural gas costs will lead to increased cost of goods sold per ton and weigh on Nutrien's margins. Higher sulfur and ammonia input costs are another concern.
High Costs, Rising Provisions Hurt Washington Federal (WAFD)
Per the Zacks analyst, higher expenses are likely to hamper Washington Federal's bottom-line growth. Further, deteriorating economic outlook will hurt the bank's credit quality in the near term.
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AstraZeneca PLC (AZN) : Free Stock Analysis Report
Salesforce Inc. (CRM) : Free Stock Analysis Report
Honeywell International Inc. (HON) : Free Stock Analysis Report
Novo Nordisk A/S (NVO) : Free Stock Analysis Report
Comcast Corporation (CMCSA) : Free Stock Analysis Report
The Progressive Corporation (PGR) : Free Stock Analysis Report
