Friday, August 14, 2020
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 (AMZN), Amgen (AMGN) and TOTAL (TOT). 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 >>>
Amazon shares have outperformed the S&P 500 in the year-to-date period (+69.5% vs. +4.6%), with the pandemic accelerating digitization trends that had already been in place. The company has been a leader in both online sales as well as cloud computing and both of those businesses have been thriving during the pandemic.
Moreover, surge in online grocery shopping was a major positive. Additionally, solid Prime momentum owing to ultrafast delivery services and expanding content portfolio remained tailwind.
Further, strengthening AWS services and its growing adoption rate contributed well. Additionally, improving Alexa skills and features remained a major positive. Expanding smart home products offerings were tailwinds. However, accelerating coronavirus related expenses remain major concerns. Also, foreign exchange headwinds and rising cloud competition are risks.
(You can read the full research report on Amazon here >>>)
Shares of Amgen have gained +7% over the past six months against the Zacks Biomedical and Genetics industry’s rise of +2.5%. The Zacks analyst believes that while Amgen’s drugs like Prolia, Evenity, Repatha, Aimovig, Otezla and biosimilars are driving sales, increasing competition for its legacy products continue to hurt the same.
Amgen beat Q2 estimates for earnings and sales. Sales of in-office administration products were hurt by COVID-19 related business disruption, which subsided later in Q2. Amgen boasts a strong biosimilars portfolio, which can drive long-term growth.
Amgen is also progressing with its pipeline while regularly pursuing “external opportunities” such as the acquisition of Otezla and the stake in China’s BeiGene. Amgen also expects several important clinical data readouts from its innovative pipeline in the second half of 2020. However, pricing and competitive pressure are concerns.
(You can read the full research report on Amgen here >>>)
TOTAL shares have gained +20% over the past three months against the Zacks Integrated International Oil industry’s rise of +6.4%. The Zacks analyst believes that the company is gaining from project startups, renewable assets, LNG portfolio and expanding upstream portfolio that has above industry-average exposure to faster-growing hydrocarbon producing regions.
TOTAL implemented cost-saving measures for preserving liquidity. Streamlining its portfolio and syncing it with long-term objectives are likely to strengthen operations. However, the company’s profitability can be adversely impacted by the ongoing decline in commodity prices.
It remains exposed to acquisition-related risk as these assets contribute a sizeable volume to production. TOTAL’s operations in some politically-troubled regions and increasing competition might affect profitability.
(You can read the full research report on TOTAL here >>>)
Other noteworthy reports we are featuring today include American Tower (AMT), Vertex Pharmaceuticals (VRTX) and FedEx (FDX).
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Sheraz Mian
Director of Research
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
Featured Reports
Steady Demand Buoys American Tower (AMT) Amid Churn Concerns
Per Zacks Analyst, American Tower is witnessing steady demand at its towers, owing to a surge in wireless services usage.
Vertex’s (VRTX) Triple Combo CF Pill Key to Growth in 2020
Per the Zacks analyst, Vertex’s sales in 2020 are being driven by rapid uptake of Trikafta as well as higher international revenues.
Spike in E-commerce Ups FedEx (FDX), Express Segment Upsets
The Zacks analyst is bullish on the surge in e-commerce demand amid the current scenario. However, persistent weakness in the Express unit is a concern.
Acquisitions Aid Revenue Growth at Global Payments (GPN)
Per the Zacks analyst, numerous acquisitions, alliances, partnerships, and joint ventures made by the company are aiding its revenue growth while adding scale and size to business.
Micron (MU) Benefits from Growing Memory-Chip Demand
Per the Zacks analyst, Micron is growing on solid memory-chip demand from data-center operators.
Focus on U.S. Operations & Clean Energy Aid PPL Corp (PPL)
Per Zacks analyst, PPL Corp’s focus to enhance core domestic operations, production of clean energy and its efforts to strengthen balance sheet will boost performance.
Solid Prospects in Proton Solutions Unit Drives Varian (VAR)
Varian’s Proton Solutions segment has seen solid growth in recent times. The Zacks Analyst is also buoyed by Varian’s strong presence in China
New Upgrades
Capacity Expansion, Cost Reduction to Aid Albemarle (ALB)
According to the Zacks analyst, Albemarle should gain from its actions to boost its global lithium derivative capacity. Its cost-saving actions will also support margins in 2020.
At Home (HOME) Benefits From Solid Demand for Decor Products
Per the Zacks analyst, strong demand for home decor products backed by solid product reinvention, store expansion and increasing omnichannel capabilities, are driving At Home’s performance.
American Public (APEI) Rides on Enrollments, Affordability
Per the Zacks analyst, American Public’s ability to boost enrollment by providing affordable and high-quality academic programs bodes well.
New Downgrades
Increasing Investments to Counter Stiff Competition Ail AMD
Per the Zacks analyst, increasing expenses on product development amid intense competition in the traditional PC market and GPU segment is likely to hurt AMD’s profitability at least in the near term.
Rising Cost Impact First Republic’s (FRC) Bottom-line Growth
Per the Zacks analyst, First Republic’s bottom-line remains under pressure due to the continued rise in expenses through investments in digital initiatives.
Rising Expenses, High Debt Level Mar Invesco (IVZ) Prospects
The Zacks analyst believes significant high levels of debt and mounting operating expenses will likely hamper Invesco’s financials despite synergies from acquisitions and improving assets balance.
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