Tuesday, July 5, 2022
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), Intel Corp. (INTC), and Qualcomm Inc. (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 >>>
Novo Nordisk
shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+32.6% vs. +20.1%) on the back of the company’s promising diabetes drug, Ozempic. The Zacks analyst has described the Rybelsus launch as further strengthening Novo Nordisk’s best-in-class diabetes portfolio.
Ozempic, Rybelsus, Xultophy and Saxenda have been helping the company maintain momentum. Label expansion of these existing drugs is expected to boost sales.
However, lower realized prices in the U.S., loss of exclusivity for products and stiff competition are affecting sales totals. P
atent expiration on some of the products in Novo Nordisk’s portfolio is a concern.
Sales continue to be negatively impacted by the Covid pandemic. Supply challenges for Wegovy have also hurt the stock.
(You can
read the full research report on Novo Nordisk here >>>
)
Intel
shares have declined -28.3% year to date versus the Zacks Semiconductor – General industry’s decline of -41.6%. The chip-making major
reaffirmed its earlier guidance for 2022 despite short-term headwinds, as it expects demand to pick up in the second half of the year.
The company is riding on prospects of the Internet of Things and Mobileye businesses. Mobileye growth should be driven by design wins amid a recovering auto industry. Recovery in the enterprise business of the data center segment is a positive. Intel is developing more integrated solutions that will likely be competitive on a cost-per-watt basis while offering customized solutions for bigger firms.
(You can
read the full research report on Intel here >>
>)
Qualcomm
shares have declined -10.9% over the past year against the Zacks Wireless Equipment industry’s decline of -16.7%. The company faces intense competition from low-cost chip manufacturers. High research and development costs are expected to dent margins, while the global chip shortage due to supply-chain disruptions is a headwind. It is susceptible to risks arising from lower handset shipments, especially in China.
However, Qualcomm is focused on retaining its leadership in 5G and the chipset market, delivering low-power resilient multi-gigabit connectivity with best-in-class security. It is witnessing healthy traction in EDGE networking solutions across diverse sectors.
The buyout of Arriver will bolster its ability to deliver fully integrated Advanced Driver Assistance System solutions to automakers. The company is well-positioned to benefit from solid 5G traction with greater visibility and diversified businesses to meet its long-term revenue targets.
(You can
read the full research report on Qcom here >>>
)
Other noteworthy reports we are featuring today include T-Mobile US, Inc. (TMUS), Blackstone Inc. (BX), and Sony Group Corp. (SONY).
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 Trend
s and
Earnings Preview
reports. If you want an email notification each time Sheraz publishes a new article, please
click here>>>
Today’s Must Read
Novo Nordisk (NVO) Rides High on Robust Diabetes Drugs Sales
Intel (INTC) Rides on Diversified Portfolio, Holistic Growth
Qualcomm (QCOM) Rides on 5G Traction, Portfolio Strength
Featured Reports
SONY to Gain from Brand Focus & Improving G&NS Segment Sales
Per the Zacks analyst, Sony’s focus on the premium segment of the branded products market to boost growth is a tailwind. The company expects G&NS Segment sales to be driven by higher hardware sales.
Business Model Revamp Aids Mitsubishi (MUFG), Costs Ail
Per the Zacks analyst, Mitsubishi UFJ’s up-gradation and reformation of its business model will improve profitability. Yet, higher salaries are likely to inflate costs and impede bottom-line growth.
TC Energy’s (TRP) C$24B Growth Projects to Boost Earnings
The Zacks analyst believes that TC Energy’s C$24 billion of growth projects should support its earnings and dividend payouts but is worried over the massive debt of around C37 billion.
Favorable Budget Aids L3Harris (LHX), Poor Air Travel Woes
Per the Zacks analyst, increased budgetary provision for defense spending boost growth prospects for L3Harris Technologies. Yet poor air travel data may continue to hurt the stock.
AutoZone (AZO) Gains on DIY Unit, Revenue, Supply Woes Hurt
Per the Zacks analyst, AutoZone’s DIY unit is reaping profits. Its impressive revenues fuel long-term prospects. But, supply chain issues along with chip crisis are likely to clip margins and growth.
Solid Liquidity Aids Paychex (PAYX) Despite Talent Cost Woes
The Zacks analyst is optimistic about Paychex’s gradual increase in current ratio and investor-friendly steps. However, rising talent costs due to competition are a headwind.
Fastenal (FAST) Gains From E-Commerce, Inflation Hurts
Per the Zacks analyst, continued enhancement of daily sales through e-commerce will drive Fastenal’s growth. However, inflationary pressures, tight supply chains and labor shortages are risks.
New Upgrades
T-Mobile (TMUS) Likely to Benefit From Extensive 5G Coverage
Per the Zacks analyst, T-Mobile remains poised to gain from extensive 5G coverage and improved 5G Home Internet services across the country and has raised the guidance for 2022 across the board.
Blackstone (BX) Poised for Asset Growth Driven by Inflows
Per the Zacks analyst, continued net inflows will keep aiding Blackstone’s assets under management. Its diversified products and superiority in the alternative investments space will support top line.
Pediatrix Medical’s (MD) Strategic Buyouts, Telehealth Aid
Per the Zacks analyst, Pediatrix Medical’s strategic acquisitions boost its footprint and service offerings across markets. Also, its expanding telehealth services will continue driving profits.
New Downgrades
RenaissanceRe (RNR) Continues to Grapple With High Cat Loss
Per the Zacks analyst, the property & casualty (P&C) insurer remains susceptible to several catastrophic events, which impact its underwriting results. Higher expenses are woes.
Rising Costs, Supply-Chain Issues Irk Tandem Diabetes (TNDM)
The Zacks analyst is concerned about Tandem Diabetes’ escalating operating expenses which are weighing on its bottom line. Global supply-chain headwinds also continue challenge the company.
Soft Garden Segment to Hurt Central Garden’s (CENT) Sales
Per the Zacks analyst, tough operating environment and softness in the Garden portfolio are likely to hurt Central Garden & Pet Company’s sales. As a result, management cut fiscal 2022 earnings view.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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