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Top Stock Reports for Amazon.com, Novo Nordisk & QUALCOMM

Wednesday, March 22, 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 Amazon.com, Inc. (AMZN), Novo Nordisk A/S (NVO) and QUALCOMM Incorporated (QCOM). 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 Amazon.com lagged the broader market (-38.7% vs. -11.2% for the S&P 500) and the Zacks Tech sector (-14%) over the past year, reflecting fears of an extended period of post-Covid retrenchment in the company's capacity both in the retail as well as cloud businesses.  Further, softness in online shopping activities remains a negative for its online stores.

These near-term challenges notwithstanding, Amazon's AWS business remains well positioned for the eventual recovery in business cloud spending. Ultrafast delivery services and expanding content portfolio effectively guarantee that Amazon hangs onto its market share in this period of weakness. Strengthening relationship with third-party sellers was a positive. Robust advertising business contributed well.

Improving Alexa skills along with robust smart home products offerings were tailwinds. Amazon’s strong global presence and solid momentum among the small and medium businesses remain positives.

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

Novo Nordisk shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+34.7% vs. +2.9%). 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 further boost sales. 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 have been resolved. The company has been diversifying its efforts to develop new treatments, which is encouraging. 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 >>>)

QUALCOMM shares have underperformed the Zacks Wireless Equipment industry over the past year (-19.0% vs. -15.5%). The company has offered a muted outlook for the second quarter due to rapid deterioration in demand and high channel inventory amid a challenging macroeconomic environment and business uncertainty.

QUALCOMM company expects softness in the handset market and weaker overall mix of devices. High research and development costs are also expected to dent margins. However, Qualcomm is well-positioned to benefit from solid 5G traction with greater visibility and a diversified revenue stream. The buyout of Veoneer is likely to further augment its automotive business.

It is focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor company for the intelligent edge. It is also witnessing healthy traction in EDGE networking that helps to transform connectivity across diverse IoT devices.

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

Other noteworthy reports we are featuring today Booking Holdings Inc. (BKNG), American Tower Corporation (AMT) and Chubb Limited (CB).

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

Amazon (AMZN) Banks on Growing AWS Adoption & Prime Momentum

Ozempic, Rybelsus Sales Boost Growth for Novo Nordisk (NVO)

ADVERTISEMENT

Qualcomm (QCOM) is Poised to Benefit from Solid 5G Traction

Featured Reports

5G Network Deployment Efforts to Aid American Tower (AMT)
Per the Zacks Analyst, American Tower to benefit from high network investments by wireless carriers to deploy 5G networks. However, customer concentration and rising interest rates are key woes.

Better Rate, Increased Exposure Aid Chubb (CB), Cat Loss Ail
Per the Zacks analyst, Chubb is set to grow on better rate environment, increasing exposures and market share, solid capital position and cash generation capabilities. Yet, exposure to cat loss ails.

Market Share Gains to Aid Keurig Dr Pepper's (KDP) Sales
Per the Zacks analyst, Keurig Dr Pepper has been gaining from solid performance in its cold beverages and strong market share gains. This led to sales growth of 12.1% in Q4.

Church & Dwight (CHD) Benefits from Impressive Brand Portfolio
Per the Zacks analyst, Church & Dwight is benefiting from its solid brand portfolio. In the fourth quarter, the company saw consumption growth in 13 out of 17 categories.

Favorable Markets Support Lincoln Electric (LECO), Costs Ail
Per the Zacks analyst, continued acceleration in Lincoln Electric's end markets, focus on innovative new products and recent acquisitions will drive growth despite raw material cost inflation.

H&R Block (HRB) Benefits From Block Horizons 2025 Strategy
Per the Zacks analyst, Block Horizons is expected to help H&R Block deliver sustainable revenues and operating profit growth, improve return on investments, and maintain a strong liquidity position.

Strong Investment Aid PNM Resources (PNM) Amid Merger Delay
Per the Zacks analyst, PNM Resources' strong investment will increase reliability of its operation. Yet, delay in getting necessary approval for AGR merger can lower profitability and growth prospects

New Upgrades

Solid Gross Bookings Momentum Aids Booking Holdings (BKNG)
Per the Zacks analyst, robust merchant business, strengthening accommodation unit and rising booked room nights number are aiding Booking Holdings' gross bookings growth.

A Slew of Product Launches Continues to Aid Masimo (MASI)
The Zacks analyst is upbeat about Masimo's robust portfolio, where a series of products are lined up for launch. Masimo's focus on patient-monitoring further raises optimism.

Rosy Used Vehicle Sales, Dividends & Buybacks Aid Ryder (R)
The Zacks analyst is impressed with the company's efforts to reward its shareholders. Strong used vehicle sales and a favorable rental market environment are added positives.

New Downgrades

Focus on Multiple Basins to Hurt Ovintiv (OVV)
The Zacks analyst believes that there appears to be a case for Ovintiv to narrow its focus by divesting some non-core acreages to concentrate more on its core operations.

Catastrophe Loss Exposure, High Expenses Ail Palomar (PLMR)
Per the Zacks analyst, Palomar's exposure to catastrophe events induces underwriting volatility and deteriorate combined ratio. Increase in expenses weigh on margin expansion.

Inflationary Pressures Hurt Papa John's (PZZA) Prospects
Per the Zacks analyst, Papa John's operations are likely to be affected by commodity inflation and a tight labor market. Also, deteriorating economic conditions in the United Kingdom remains a concern

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Amazon.com, Inc. (AMZN) : Free Stock Analysis Report

QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report

American Tower Corporation (AMT) : Free Stock Analysis Report

Novo Nordisk A/S (NVO) : Free Stock Analysis Report

Chubb Limited (CB) : Free Stock Analysis Report

Booking Holdings Inc. (BKNG) : Free Stock Analysis Report

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Zacks Investment Research