Thursday, May 20, 2021
Zacks Research Daily features the best research results from our team of analysts. Today, Research Daily presents new research reports on 16 major stocks, including Novo Nordisk AS (NVO), International Business Machines Corporation (IBM) and Deere & Company (DE). These research reports were hand-picked from over 70 reports published by our team of analysts today.
You can see all today’s research reports here >>>
Actions of Novo Nordisk outperformed the Zacks Large Cap Pharmaceuticals industry over the last one-year period (+ 23.4% vs. + 11.8%). In fact, Novo Nordisk’s earnings and revenues exceeded estimates in the first quarter. Additionally, Ozempic has got off to a good start and the launch of Rybelsus also looks impressive, according to the Zacks analyst.
Victoza, Ozempic, Xultophy and Saxenda have helped the company maintain its momentum. The expansion of existing drug labels will further boost sales. In 2021, the company will continue to focus on commercial execution while conducting more advanced clinical studies than ever before to meet the needs of people with diabetes and other serious chronic conditions.
However, lower prices in the United States, loss of exclusivity for hormone replacement therapy products and increased competition will affect sales. Sales are also negatively affected by storage linked to COVID-19, which remains a misfortune.
Actions of IBM have outperformed the Zacks Computer – Integrated Systems industry since the start of the year (+ 13.8% versus + 12.4%). Zacks analyst believes IBM is well positioned to benefit from a strong adoption of enterprise cloud solutions. The synergies of the acquisition of Red Hat strengthen its competitive position in the hybrid cloud market.
The company is also likely to benefit from the spin-off of the legacy infrastructure services business, as it focuses on its hybrid cloud strategy. A strong patent portfolio and healthy adoption of blockchain, security, and other digital transformation offerings from IBM bodes well for the long term.
Still, intense competition in the cloud computing market from Amazon Web Services and Microsoft Azure is a major headwind. Higher debt levels as part of major restructuring activities are other concerns.
Actions of Deere have gained + 33.2% year-to-date compared to the Zacks Manufacturing – Agricultural Equipment industry gain of + 29.7%. Deere expects net income for fiscal 2021 of between $ 4.6 billion and $ 5 billion, supported by improving conditions in the agriculture and construction sectors. The midpoint of the range suggests a year-over-year improvement of 75%. The recovery in commodity prices bodes well for demand for agricultural equipment. In addition, replacement demand triggered by the need to replace old equipment will continue to increase the company’s revenue.
Zacks analyst believes Deere’s focus on investing in new products with advanced technology gives it a competitive advantage. In addition, the company’s concerted efforts to expand into precision agriculture will drive long-term growth.
Other interesting reports we present today include BHP Group (BHP), VALE SA (VALE) and Manulife Financial Corporation (MFC).
Disruptive biotech stocks with triple-digit profit potential
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Zacks just released Century of Biology: 7 Biotech Stocks to Buy Now to Help Investors Profit from 7 Outperforming Stocks. Our recent biotech recommendations have produced gains of + 50%, + 83% and + 164% in as little as 2 months. The actions of this report could be even better.
Note: Sheraz Mian heads the Zacks Equity Research department and is a recognized expert in Global Profits. He is frequently cited in print and electronic media and publishes the weekly Income trends and Income overview reports. If you would like to receive an email notification every time Sheraz publishes a new article, please click here >>>
According to Zacks analyst, Devon’s strong production from high-margin assets in five oil-rich US basins and effective cost management will boost its long-term performance.
The Zacks analyst appreciates Helmerich & Payne’s low debt levels, both absolute and relative, and the lack of significant short-term maturities, but is concerned about the decline in drilling activity.
Zacks analyst likes Green Dot’s strategy to expand its addressable market using Bank Account as a Service (BaaS) programs.
According to the Zacks analyst, Manulife is poised to grow with strong activities in Asia and in wealth and asset management and a strong capital position.
According to the Zacks analyst, DENTSPLY has gained strength in its main unit of technology and equipment.
Zacks analyst believes that rising iron prices and BHP’s strong cash flow, focus on debt reduction and efforts to make operations more efficient will drive growth despite higher costs.
According to Zacks analyst, Adtalem is benefiting from growth in enrollment at Chamberlain University. However, disruption from COVID-19 and increasing variable costs can hurt margins.
According to the Zacks analyst, high iron ore prices, efforts to reduce debt levels and focus on improving quality, productivity and reducing costs will drive growth for Vale.
According to the Zacks analyst, supported by a strong balance sheet position, SVB Financial continues to make efforts to expand globally. These initiatives are expected to continue to support revenue growth.
According to the Zacks analyst, Abercrombie & Fitch enjoys extensive omnichannel capabilities as well as solid traffic to its websites and apps. This led to net digital sales growth of 34% in the fourth quarter.
Regulatory concerns over Alibaba’s monopolistic behavior as well as heightened competition in the e-commerce and cloud computing market are looming, according to the Zacks analyst.
According to the Zacks analyst, intense competition from EA and Activision is forcing Take Two to spend more on game development and advertising, thus keeping margins under pressure.
According to Zacks analyst, aside from fierce competition, InterDigital is grappling with escalating research and development costs to deliver innovative technological solutions to the wireless market.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.