Top Research Reports for Abbott Laboratories, ServiceNow & Schlumberger

Wednesday, November 2, 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 Abbott Laboratories (ABT), ServiceNow, Inc. (NOW) and Schlumberger Ltd. (SLB). 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 >>>

Abbott Laboratories’ shares have declined -22.2% over the past year against the Zacks Medical - Products industry’s decline of -49.3%. The company’s total sales were negatively impacted by COVID-19 testing-related sales decline and a manufacturing stoppage initiated in February of certain infant nutrition formula products manufactured at Abbott's Sturgis, MI, facility.

Excluding these negative factors, total worldwide sales increased 6% on an organic basis, benefiting from robust sales growth across the company’s core Established Pharmaceuticals and Medical Devices segments.

Meanwhile, the Diabetes Care business continued to benefit from the growing sales of its flagship CGM system, FreeStyle Libre. Abbott exited the third quarter of 2022 with better-than-expected earnings and revenues. The raised 2022 guidance buoys optimism.

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

Shares of ServiceNow have underperformed the Zacks Computers - IT Services industry over the past year (-39.1% vs. -35.3%). The company is suffering from high inflation, unfavorable forex and challenging macro-economic environment. Stiff competition is a headwind and is expected to hurt prospects in the long haul.

However, robust growth in subscription revenues as reflected by the strong third-quarter 2022 results. The company is riding on the increasing adoption of its workflows by enterprises undergoing digital transformation. As businesses, government agencies and others continue to their infrastructure to cloud, the company is poised to boost uptake of its Now platform.

Further, its expanding global presence, solid partner base and strategic buyouts are expected to bolster growth prospects. Strategic alliances with the likes of Microsoft remain tailwinds.

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

Schlumberger’s shares have outperformed the Zacks Oil and Gas - Field Services industry over the past year (+56.3% vs. +6.4%).  The company is the largest oilfield services player, with a presence in every energy market across the globe. Being the leading provider of technology for complex oilfields, the company is well-poised to take up new offshore projects in international markets.

The significant increase in oil prices is aiding its overall business. Increased participation in growth of drilling and completion activities across the world brightened the company’s outlook. Schlumberger reported strong third-quarter results owing to strong activities in land and offshore resources in North America and Latin America.

However, the company’s balance sheet has massive debt exposure compared with the composite stocks in the industry. Also, the aggressive capital spending budget remains a headwind for the company. As such, the stock warrants a cautious stance.

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

Other noteworthy reports we are featuring today include Archer-Daniels-Midland Co. (ADM), Shopify Inc. (SHOP), and Workday, Inc. (WDAY).

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. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

EPD Sales Gain Aids Abbott (ABT) amid Inflationary Issues

Growing Customer Base & Partnerships Aid ServiceNow (NOW)

Schlumberger (SLB) to Gain on Rising Oilfield Service Demand

Featured Reports

Product Rollouts & Growing Merchant Base Aid Shopify (SHOP)
Per the Zacks analyst, Shopify is benefiting from products like Shopify Shipping, Shopify Payments and Shopify Capital solutions. New merchant friendly applications are also driving growth.

Workday (WDAY) Rides on Solid Demand Trends for HCM Solution
Per the Zacks analyst, Workday is likely to benefit from the high demand for HCM and financial management solutions, while gaining significant traction from its cloud-based business model.

PACCAR's (PCAR) DAF Brand to Aid Sales, High Capex Worrisome
While PACCAR's new DAF lineup comprising XF, XG, XG+ and XD models will buoy top-line growth, the Zacks analyst is concerned of high capex needs which are likely to limit cash flows.

Zscaler (ZS) Benefits From Acquisitions & Product Refreshes
Per the Zacks analyst, Zscaler is benefiting from its strategic acquisitions like Smokescreen and Trustdome. Moreover, frequent product refreshes are helping it in gaining new customers.

Dividends & Buybacks Lift GATX's Prospects Despite Cost Woes
The Zacks analyst is impressed with the company's efforts to reward its shareholders. However, high operating expenses, mainly due to elevated fuel costs, are hurting its bottom line.

Credit Sales, Solid Balance Sheet Aid Bread Financial (BFH)
Per the Zacks analyst, Bread Financial is set to grow on strong credit sales aided by solid consumer spending. Moreover, its healthy balance sheet should drive long-term growth.

Reata Pharma (RETA) Pipeline Promises Potential, Competition Stiff
Per the Zacks analyst, Reata is rapidly advancing its robust pipeline of early and late-stage candidates. However, competition from bigwigs in targeted markets is stiff.

New Upgrades

Nutrition Segment to Drive Archer Daniel's (ADM) Growth
Per the Zacks analyst, Archer Daniels gains from strength in the Nutrition segment on continued demand in the human nutrition unit. It expects operating profit growth of 15-20% in 2022 for this unit.

Recruiting Efforts, Acquisitions to Aid LPL Financial (LPLA)
Per the Zacks analyst, LPL Financial's recruiting efforts and solid advisor productivity will likely aid advisory revenues. Its inorganic growth efforts make it well poised for top-line improvement.

Oceaneering (OII) To Gain from Robust Offshore Activity
Per the Zacks Analyst, increasing demand for OII's services and products in offshore renewable markets along with supportive commodity prices will augment margins for the firm moving ahead.

New Downgrades

Supply Chain Constraint, Poor Financials Hurt L3Harris (LHX)
Per the Zacks analystu, global electronic component shortage led supply chain constraint is hurting L3Harris' Communications Systems unit. Also its weak financial position poses risk for the stock

Hain Celestial (HAIN) Witnesses Supply-chain & Other Headwinds
Per Zacks analyst, Hain Celestial is grappling with challenges like inflation, supply-chain issues and weak plant-based categories. It also experienced deleverage in factories hurting gross margin.

Lower Volume & High Inflation Ails Mohawk's (MHK) Business
Per the Zacks analyst, Mohawk is witnessing lower volume, higher unabsorbed costs and material, energy and transportation inflation, and the unprecedented energy crisis within its Europian business.

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Abbott Laboratories (ABT) : Free Stock Analysis Report
 
Schlumberger Limited (SLB) : Free Stock Analysis Report
 
Archer Daniels Midland Company (ADM) : Free Stock Analysis Report
 
Workday, Inc. (WDAY) : Free Stock Analysis Report
 
ServiceNow, Inc. (NOW) : Free Stock Analysis Report
 
Shopify Inc. (SHOP) : Free Stock Analysis Report
 
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