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Top Analyst Reports for Novo Nordisk, TotalEnergies & U.S. Bancorp

Friday, June 7, 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), TotalEnergies SE (TTE) and U.S. Bancorp (USB), as well as a micro-cap stock Flanigan's Enterprises, Inc. (BDL). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.

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’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+82.3% vs. +32.6%) on the back of the drugmaker's weight-loss offerings. The company beat first-quarter earnings and revenue estimates, driven by strong sales of GLP-1 products. Its diabetes drugs Ozempic and Rybelsus and obesity drug Wegovy have been performing well, fueled by increasing demand.

Label expansions of the same in cardiovascular and other indications will likely boost sales. NVO has been tackling the supply constraints of Wegovy by increasing its manufacturing capabilities. The drug is now indicated in the United States to also reduce heart risks, which is a huge boost.

The company is also gearing up to buy Cardior to help diversify its portfolio beyond diabetes treatments and obesity drugs. However, intense rivalry in the obesity sector threatens Novo Nordisk’s market share. Patent expiry and pricing pressure across the diabetes market also remain a woe.

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

Shares of TotalEnergies have gained +8.3% over the past six months against the Zacks Oil and Gas - Refining and Marketing industry’s gain of +8.4%. The company continues to benefit from startups, acquisitions, well-spread LNG assets and contribution from upstream assets located in the new hydrocarbon-producing regions.

Multi-energy assets of TotalEnergies, spread across the globe, support its performance. TotalEnergies is steadily investing in clean power generation and aims to achieve net-zero emissions by 2050.

However, the company’s production might get impacted by security-reasons in some regions. Fluctuating hydrocarbon prices are concerns. The company remains exposed to acquisition-related risks as these assets contribute a sizable volume to production. A natural decline in production and its withdrawal from Russia might affect profitability.

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

U.S. Bancorp shares have underperformed the Zacks Banks - Major Regional industry over the past six months (-1.9% vs. +22.8%). The company is facing rise in expenses and provisions which may weigh on its bottom line in the near term. A concentrated loan portfolio is a woe. The downward estimate revision trend for 2024 raises apprehension.

Nevertheless, U.S. Bancorp has a decent surprise history, with earnings beating estimates in three of the trailing four quarters and missing on the remaining one occasion. First quarter results benefited from growth in fee income and lower.

A solid business model and diverse revenue streams are likely to keep aiding its financials in the upcoming period. Despite a challenging interest rate environment and pressure on deposit levels, the company’s consumer deposits continue to witness decent growth.

(You can read the full research report on U.S. Bancorp here >>>)

Shares of Flanigan's have outperformed the Zacks Retail - Restaurants industry over the past six months (+6.3% vs. +1.0%). This microcap company with market capitalization of $51.22 million has excellent prospects due to its expansion efforts, adaptability to consumer trends, strong sector growth outlook, and innovative business practices may bolster future prospects. Efficient supply chain management and favorable consumer spending trends could also support sustained growth and profitability.

However, recent performance shows an 82.53% drop in net income to $109,000, coupled with a decline in earnings per share from $0.34 to $0.06, potentially eroding investor confidence. Despite a 7.8% increase in revenues to $45.14 million, the company's inability to manage rising costs hints at operational inefficiencies.

Industry challenges, particularly in the restaurant and retail liquor sectors, include higher operational costs and supply chain issues. Limited growth in key segments like franchise and rental incomes poses further investment risks.

(You can read the full research report on Flanigan’s Enterprises here >>>)

Other noteworthy reports we are featuring today include Ford Motor Company (F), Manulife Financial Corporation (MFC) and Diamondback Energy, Inc. (FANG).

Director of Research

Sheraz Mian

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

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

Expanding LNG & Clean Energy Assets Aid TotalEnergies (TTE)


Rising Loans to Aid U.S. Bancorp (USB), Mounting Costs Ail

Featured Reports

Ford's (F) Pro Business Unit to be a Key Growth Driver
Per the Zacks analyst, Ford's commercial arm, Ford Pro, will drive profits in 2024 on strong mix/volume. The unit's EBIT is forecast to rise 18% year over year at the midpoint of the view.

Manulife (MFC) is Poised to Grow on Solid Asia Business
Per the Zacks analyst, Manulife Financial is set to grow on solid Asia business, expanding Wealth and Asset Management business and cost control. However, increase in expenses weighing on margin ails.

Diamondback (FANG) to Benefit from Low Breakeven Costs
The Zacks analyst likes Diamondback Energy's extremely low oil price breakeven costs, wherein the company needs the commodity to be at just $50 a barrel to be profitable.

Robust Live Events Aid Live Nation (LYV), High Costs Ail
Per the Zacks analyst, Live Nation Entertainment is likely to benefit robust global fan demand for live events and increased ticket sales. However, high operating expenses remain a concern.

Omnicom (OMC) Gains From Diversification Amid Low Liquidity
Per the Zacks analyst, Omnicom's presence in various segments of the advertising and marketing industry diversifies its revenue streams. Low liquidity is concerning.

Molson Coors' (TAP) Innovation & Other Efforts Bode Well
Per Zacks analyst, Molson Coors is committed to growing its market share via innovation and premiumization. Its revitalization plan to achieve growth by streamlining the organization also bodes well.

Vista Segment to Benefit Cimpress (CMPR), High Costs Ail
Per the Zacks analyst, Cimpress will benefit from strength in the Vista unit, led by an increase in the customer count. However, high costs remain concerning for the company.

New Upgrades

Expanding Paying User Base Aids Dropbox's (DBX) Prospects
Per the Zacks analyst, Dropbox is benefiting from an expanding user base and strong average revenue per paying user growth.

Strength in Product Portfolio, Focus on R&D Aid Masimo (MASI)
The Zacks analyst is upbeat about Masimo's solid efforts to improve its research and development (R&D) stature. A solid product portfolio is an added plus.

Loan Growth Aids UMB Financial (UMBF), Capital Level Solid
Per Zacks analysts, UMB Financial is likely to benefit from rise in loans and deposit balances. Further, a strong capital base is another favorable factor.

New Downgrades

Qorvo (QRVO) Plagued by Fierce Competition, Soft Demand
Per the Zacks analyst, weak demand in cellular base station business will likely hinder Qorvo's top line. Increasing competition is exerting pricing pressure, which remains a concern.

Sluggishness in LSAG Segment Hurts Agilent Technologies (A)
Per the Zacks analyst, Agilent Technologies is suffering from weak Life Sciences & Applied Markets Group (LSAG) segment owing to sluggish capital equipment spending by customers and macro headwinds.

QuidelOrtho (QDEL) Plagued by Dependence on Diagnostic Tests
Per the Zacks analyst, stiff competition and over dependence on diagnostic tests will likely hinder QuidelOrtho's revenue growth. However, strong product portfolio raises optimism.

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

Ford Motor Company (F) : Free Stock Analysis Report

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

U.S. Bancorp (USB) : Free Stock Analysis Report

Manulife Financial Corp (MFC) : Free Stock Analysis Report

Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report

Flanigan's Enterprises, Inc. (BDL): Free Stock Analysis Report

TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report

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Zacks Investment Research