Thursday, May 12, 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 Amgen Inc. (AMGN), Altria Group, Inc. (MO), and Uber Technologies, Inc. (UBER). 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
Amgen
have outperformed the Zacks Medical – Biomedical and Genetics industry in the year-to-date period (+7.9% vs. -28.4%) on the back of the company’s rapidly advancing pipeline of early and late-stage assets. Several phase III readouts are due in 2022. Lumakras, a first-in-class lung cancer treatment, is off to an excellent start while its label expansion studies are progressing rapidly. Amgen also boasts a strong biosimilars portfolio.
While Amgen’s key drugs like Prolia, Repatha, Xgeva and biosimilars are driving sales, increasing competition for its legacy products is hurting the same along with pricing and competitive pressure are impacting many of its’s products and franchises. Several of Amgen’s marketed drugs are facing increased pricing headwinds and continued COVID-19 headwinds.
(You can
read the full research report on Amgen here >>>
)
Shares of
Altria Group
have modestly outperformed the Zacks Tobacco industry over the past year (+10.8% vs. +10.4%) but have done significantly better than the broader market given the stock’s solid defensive attributes.
The Zacks analyst believes that the company is gaining from strong pricing as came through in the last quarterly report when higher pricing across the Smokeable and Oral Tobacco segments aided performance. Higher pricing contributed to adjusted company’s operating income across the Smokeable unit. The company has been undertaking measures to expand in the oral tobacco space. In particular, it has been gaining from the growth in on! oral nicotine pouches.
However, Altria continues to assess the macroeconomic impacts of the pandemic on adult tobacco consumers, such as stay-at-home practices and disposable income. The company also continues to assess the impacts of any supply-chain or distribution-related disruption.
(You can
read the full research report on Altria Group here >>>
)
Uber
shares have declined -46.2% in the year-to-date period against the Zacks Internet – Services industry’s decline of -25.5%, reflectging the negative market sentiment on profitless operators like Uber. The Zacks analyst believes that there remains uncertainty over Uber’s Mobility operations. Nevertheless, the company’s measures to expand its delivery operations through successive acquisitions are encouraging. To this end, the buyout of Drizly is noteworthy.
Continued recovery in Mobility operations is aiding the company. Strong segmental performances are leading to continued improvement in Uber’s adjusted EBITDA. Moreover, with free cash flow approaching break even, the company expects positive free cash flow for the full year.
(You can
read the full research report on Uber here >>>
)
Other noteworthy reports we are featuring today include The Williams Companies, Inc. (WMB), Microchip Technology Incorporated (MCHP), and Arista Networks, Inc. (ANET).
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
Amgen (AMGN) Rapidly Advancing Pipeline Development
Altria (MO) Gains on Robust Pricing, Oral Tobacco Products
UBER Gains From Delivery Segment Growth, Mobility Recovery
Featured Reports
Robust Product Pipeline & Partnerships Aids Microchip (MCHP)
Per the Zacks analyst, Microchip’s expanding product portfolio, robust demand for microcontrollers and collaboration with Amazon Web services will drive top-line growth.
Arista (ANET) Rides on Ethernet Switching Products Strength
Per the Zacks analyst, Arista is likely to gain from a market-leading position in 100-gigabit Ethernet switches and is increasingly gaining traction in 200-, and 400-GbE high-performance switches.
Restructuring Aids Ameriprise (AMP), Asset Outflows a Woe
Per the Zacks analyst, Ameriprise’s efforts to restructure operations and focus on core businesses will support revenues. Yet, outflows in the Asset Management segment and rising costs are concerns.
Cerner (CERN) Rides on EHR & EMRs, Margin Contraction a Woe
Per the Zacks analyst, Cerner continues to benefit from its lucrative HER (Electronic Health Record) & EMR (Electronic Medical Record) platforms. But operating margin contraction remains a concern.
Investment & Expanding Operation Aid American Water (AWK)
Per the Zacks analyst American Water’s planned investment to strengthen infrastructure and expanding operation through acquisition and organic means are going to drive its performance.
Westlake (WLK) Gains on Acquisitions, Strong Demand
Per the Zacks analyst, strong demand for polyethylene and polyvinyl chloride resin will drive the company’s top line. It should also gain from synergies of acquisitions including NAKAN and LASCO.
Jacobs (J) Banks on Focus 2023 Initiative, High Cost Ail
Per the Zacks analyst, Jacobs has been benefiting from a strong backlog, acquisitions and its focus on high-value business. Yet, higher medical costs, IT investments and other expenses are a concern.
New Upgrades
Williams (WMB) to Benefit from Transco-Related Projects
The Zacks analyst believes that Williams’ existing and expansionary projects associated with the massive Transco gas transmission system will boost the company’s growth prospects.
Paycom Software (PAYC) Benefits From Growing Customer Base
Per the Zacks Analyst, Paycom Software is benefiting from its differentiated employee strategy, measurement capabilities and comprehensive product offerings, that are helping it win new customers.
Solid Top Line, Strong Cash Flows Aid American Financial (AFG)
Per the Zacks analyst, its strong revenues driven by higher net investment income, net earned premiums have led to significant growth. Moreover, its healthy balance sheet should drive long-term growth
New Downgrades
Fierce Rivalry in Generics Market Weighs on Dr. Reddy’s (RDY)
Per the Zacks analyst, Dr. Reddy’s is facing stiff competition in generics markets from other generic drug producers which is a concern. The pricing and competitive pressures are expected to continue.
Workday (WDAY) Plagued by Margin Woes, Higher Investments
Per the Zacks analyst, Workday’s margins are likely to be dented by high operating expenses due to an increase in headcount and marketing spending, higher investments and stiff industry competition.
Western Union (WU) Profits Hit by Tough Remittance Race
Growing competition in the remittance market will keep Western Union’s profit growth muted. Also, a high debt level can affect its financial flexibility, per the Zacks analyst.
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