News

Wednesday, July 10, 2024

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), AbbVie Inc. (ABBV) and AstraZeneca PLC (AZN), as well as two micro-cap stocks, Air T, Inc. (AIRT) and United-Guardian, Inc. (UG). These research reports have been hand-picked from 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 (+84.5% vs. +34.3%). The Zacks analyst believes that the company’s diabetes and obesity drugs segments have been driving business growth, and the company is also gearing up to buy Cardior to help diversify.

Yet, intense rivalry in the obesity sector threatens Novo Nordisk’s market share. Patent expiry and pricing pressure across the diabetes market also remain a major concern.

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

AbbVie’s shares have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+23.9% vs. +34.3%). The Zacks analyst believes that the company faces several near-term headwinds like Humira’s biosimilar erosion, increasing competitive pressure on Imbruvica and decreased demand for fillers in international markets.

Yet, high costs and expenses related to projects and restructuring activities have remained as causes of concern.

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

Shares of AstraZeneca have underperformed the Zacks Large Cap Pharmaceuticals industry over the past two years (+14.8% vs. +38.9%). Per the Zacks analyst, the company’s diabetes franchise faces stiff competition while the respiratory unit is being hurt by pricing pressure.

Yet, a massive global presence, diverse product portfolio, external acquisitions and strategic collaborations to boost its pipeline are going to aid. Also, key drugs like Lynparza, Tagrisso, Imfinzi, Fasenra, Ultomiris and Farxiga should keep driving revenues.

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

Air T’s shares have outperformed the Zacks Transportation – Air Freight and Cargo industry over the past six months (+58.4% vs. -6.3%). The Zacks analyst believes that wise acquisitions, higher administrative fees and diversification across four segments have helped drive Air T’s growth in recent months. The WASI acquisition enhances service offerings and geographic reach, contributing to revenue growth. Equity investments and effective cost management bolster financial stability.

However, declining profit margins, high debt levels, negative cash flows, and sector-specific risks and operational losses remain major headwinds.

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

United-Guardian’s shares have outperformed the Zacks Medical – Products industry over the past year (+15.1% vs. -3.1%). The Zacks analyst believes that discontinuation of low-growth industrial products, focus on higher-margin segments, market strength in cosmetic ingredients and medical lubricants and being supported by a global customer base have helped grow UG’s business.

However, a significant reserve of slow-moving and obsolete inventory, concentration of key customers and supply chain vulnerabilities remain causes for concern.

(You can read the full research report on United-Guardian here >>>)

Other noteworthy reports we are featuring today include Lam Research Corp. (LRCX), Medtronic plc (MDT) and Amphenol Corp. (APH).

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.

Today's Must Read

GLP-1 Drugs Boost Novo Nordisk (NVO), Market Rivalry a Woe

AbbVie's (ABBV) Skyrizi, Rinvoq Key to Top-Line Growth

Key Drugs Aid AstraZeneca (AZN) Sales; Pipeline Strong

Featured Reports

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 are expected to boost the company's growth prospects.

WEX Benefits From Payzer Buyout Amid Declining Liquidity
Per the Zacks Analyst, the Payzer buyout strengthens WEX's growth strategy, offering scalable SaaS to 150,000 small business customers. Declining liquidity is concerning.

Cost Containment Efforts to Aid General Motors (GM)
While General Motors is on track to deliver on its $2 billion net cost reduction program by the end of 2024, the Zacks analyst is concerned about weak sales in China which may dent overall revenues.

Lam Research (LRCX) Benefits from Etch & Deposition Strength
Per the Zacks analyst, growing etch and deposition intensity owing to increasing technology inflections in 3D architectures, is benefiting Lam Research's prospects.

Regions Financial (RF) Rides on Loan Growth Amid High Costs
Per the Zacks analyst, Regions Financial's steady improvement in loan balances, along with the current high interest rate environment is aiding its net interest income. Yet, rising costs remain a woe.

Medtronic (MDT) Core Wings Expand, Cardiovascular Sales Rise
The Zacks analyst is impressed that despite macroeconomic issues, Medtronic is expanding its foothold across core businesses. Cardiovascular global expansion remains strong.

Everest Group (EG) Banks on Solid Premiums Amid High Costs
Per the Zacks analyst, Everest Group is set to grow on solid Insurance segment on the back of new business opportunities, which drives premium growth. However, high costs remain a concern.

New Upgrades

Order Flows, Defense Budget Boost Kratos Defense (KTOS)
Per the Zacks analyst, Kratos is expected to witness robust order flows backed by growing demand in the unmanned aerial sector. U.S. defense budget funding will also boost its growth.

End-Market Strength & Diversification Aids Amphenol (APH)
Per the Zacks analyst, Amphenol benefits from commercial air, military, industrial and automotive end-market demand. Diversified business model also lowers volatility of individual geographies.

Strategic Buyout & Innovation Plans Aid UFP Industries (UFPI)
Per the Zacks analyst, UFP Industries is benefiting from new product sales, innovation initiatives, and accretive acquisition strategies. Also, consistency in rewarding shareholders bodes well.

New Downgrades

Soft Demand to Hurt Capri Holdings (CPRI) Top Line
Per the Zacks analysts, softness in demand for luxury fashion items is likely to hurt Capri Holdings top line. The company is seeing sluggishness across its brands.

Bandwidth (BAND) Plagued by Stiff Competition, Forex Volatility
Per the Zacks analyst, growing competition in the cloud communication market will likely affect Bandwidth's margin. Rising geopolitical unrest and fluctuation in foreign exchange rates are headwinds.

Juniper (JNPR) Hurt by Soft Demand, Macroeconomic Headwinds
Per the Zacks analyst, weakness in the Cloud and Service Provider vertical will likely impede Juniper's top line. Cautious customer spending induced by macroeconomic challenges remains a concern.

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.

Free: See Our Top Stock and 4 Runners Up >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

AstraZeneca PLC (AZN) : Free Stock Analysis Report

Novo Nordisk A/S (NVO) : Free Stock Analysis Report

Medtronic PLC (MDT) : Free Stock Analysis Report

Amphenol Corporation (APH) : Free Stock Analysis Report

Lam Research Corporation (LRCX) : Free Stock Analysis Report

AbbVie Inc. (ABBV) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.