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Top Stock Reports for SAP, AbbVie & Sinopec

Mark Vickery

Monday, December 23, 2019

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 SAP SE (SAP), AbbVie (ABBV) and Sinopec (SNP). 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 >>>

SAP’s shares have underperformed the Zacks Computer Software industry year to date (+35% vs. +44.2%). The Zacks analyst believes that SAP is benefiting from strong growth in cloud and software revenues, and expanding customer base.

Robust adoption of S/4HANA, C/4HANA, Fieldglass, Concur and SuccessFactors Employee Central solutions hold promise. Further, SAP's alliances with Microsoft, Accenture and Verizon favor business prospects. Moreover, synergies from Qualtrics acquisition are enabling SAP to bolster Customer Experience segment revenues.

Additionally, strong demand for the company’s Intelligent Spend offerings among enterprises holds promise. Nonetheless, integration risks related to acquisitions are likely to limit margin expansion. Moreover, increasing investments to enhance cloud-based offerings are anticipated to weigh on bottom-line growth at least in the near term.

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

Shares of AbbVie have gained +22.4% in the past three months against the Zacks Large-Cap Pharmaceuticals industry’s rise of +12%. The Zacks analyst believes that AbbVie’s Humira is performing well driven by strong demand trends amid new competition. Imbruvica has multibillion-dollar potential.

AbbVie has been successful in expanding approvals for its cancer drugs, Imbruvica and Venclexta. It also has an impressive late-stage pipeline. It gained approvals for two new drugs with significant potential, Skyrizi (risankizumab) and Rinvoq this year. Both are off to a strong start. The acquisition of Allergan, if successful, should diversify AbbVie’s revenue base and accelerate its non-Humira business.

However, AbbVie’s shares have underperformed the industry this year so far. Sales erosion due to direct biosimilar competition to Humira in international markets is a big headwind. Also, the decline in HCV sales is a concern.

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

Sinopec's shares have lost -13% over the past six months against the Zacks Integrated Oil industry's decline of -5%. The Zacks analyst believes that the company has made major progress in identifying economically-viable oil & gas reserves. A huge scale of prospective new reserves was discovered in a number of prolific oil and gas resources like Sichuan Basin and Jiyang Depression.

Sinopec is among the largest integrated energy players in China, with significant presence in upstream, midstream and downstream businesses. Notably, Sinopec’s natural gas business has immense potential for growth over the coming years as China intends to move from coal to natural gas.

However, China’s bleak economic outlook will continue to hurt the firm’s refining business. With declining demand for oil products, the firm’s massive refining operations are likely to make lower contributions to earnings.

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

Other noteworthy reports we are featuring today include Eli Lilly (LLY), Cigna (CI) and Intuitive Surgical (ISRG).

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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

SAP Banks on Cloud Initiatives & Growth in S/4HANA Platform

AbbVie's (ABBV) Pipeline Solid, Skyrizi, Rinvoq Start Strong

Sinopec (SNP) Banks on Gas-Rich Sichuan, Refining Hurts

Featured Reports

Lilly (LLY) Makes Solid Pipeline Progress Solid in 2019

The Zacks analyst point out that Lilly has made significant pipeline progress in 2019 with several positive late-stage data readouts, multiple approvals and regulatory submissions.

Express Scripts Acquisition, Revenue Growth Aid Cigna (CI)

Per the Zacks analyst, the buyout of Express Scripts has diversified Cigna's operations opening up new revenue streams; increasing membership superior products and services have led to revenue growth.

da Vinci System Aids Intuitive (ISRG) Amid Stiff Competition

Strong prospect in Intutive Surgical's robotic platform - da Vinci System - is a positive.

Investment Plan Aids Duke Energy (DUK), Commodity Prices Hurt

Per the Zacks Analyst, the company's robust five-year capital plan will drive earnings base growth.

T-Mobile (TMUS) Rides on Enhanced 5G Network Infrastructure

Per the Zacks analyst, T-Mobile is likely to benefit from accelerated customer growth, backed by nationwide 5G coverage, which is likely to augment its performance in the long run.

Target's (TGT) Omnichannel & Store Expansion to Boost Sales

Per the Zacks analyst, Target's focus on enhancing omni-channel capacities, coming up with new brands, remodeling stores and expanding same-day delivery options are likely to fuel top-line growth.

Cost Cuts Aid CSX Corporation (CSX) Amid Dismal Volumes

The Zacks Analyst likes the company's cost-containment efforts. Improvement in operating ratio is also a positive.

New Upgrades

Sony (SNE) Restructures Business Portfolio to Stoke Growth

Per the Zacks analyst, a leaner organizational structure will likely help Sony to accelerate decision-making processes and reinforce competitiveness of its business units to stoke healthy growth.

United Therapeutics' (UTHR) Pipeline Strong Amid Competition

The Zacks analyst likes United Therapeutics' efforts to develop new delivery mechanisms for Remodulin and expanded indications for other PAH drugs like Orenitram and Tyvaso amid increased competition

Newmar Buyout to Drive Winnebago's (WGO) Earnings

The Zacks analyst thinks that the acquisition of Newmar Corporation will bolster Winnebago's portfolio and revenues along with resulting in several operational synergies.

New Downgrades

Weak Pricing, Lower Auto Production to Hurt Cabot (CBT)

Per the Zacks analyst, Cabot faces pricing weakness in China, which is likely to persist in the near term. Weak automotive production in Europe and China may also hurt its volumes.

Mainland China Weakness, Currency Woes Hurt Nu Skin (NUS)

Headwinds in Mainland China dented Nu Skin's top line in third-quarter 2019. Per the Zacks analyst, the dismal performance along with currency volatility have led to weak projections for 2019.

RPC (RES) Pressure Pumping Activities Hurt by Lower Pricing

With pressure pumping being RPC's biggest service line, lower pricing scenario in North America will affect the bottom line, believes the Zacks analyst.

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China Petroleum & Chemical Corporation (SNP) : Free Stock Analysis Report
SAP SE (SAP) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
Cigna Corporation (CI) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
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