Wednesday, May 24, 2023
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 AbbVie Inc. (ABBV), 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 >>>
Shares of AbbVie have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-2.6% vs. +9.8%). There are concerns about long-term sales growth as Humira generics have entered the U.S. market. Increasing competition from newer therapies is hurting Imbruvica’s sales. Slowing consumer demand due to economic pressure is hurting the aesthetics franchise’s sales.
Nonetheless, though revenues are expected to decline in 2023, AbbVie expects to return to robust sales growth in 2025. AbbVie has several new drugs in its portfolio with the potential to drive the top line to make up for lost Humira revenues.
Skyrizi and Rinvoq have established outstanding launch trajectories bolstered by approval in new indications. The company has several early/mid-stage candidates that have blockbuster potential.
(You can read the full research report on AbbVie here >>>)
Intel’s shares have gained +2.2% over the past six months against the Zacks Semiconductor - General industry’s gain of +49.3%. The company is witnessing healthy momentum in its data center business with integrated affordable solutions. Heavy investment in research and development to drive technological innovation and concerted focus on increasing market diversification are tailwinds.
Intel is increasingly focusing on a diversified product range targeting different segments of the market. Healthy traction from Mobileye’s technologies related to in-car networking, sensor-chips, cloud software, machine learning and data management are positives.
However, an uncertain macroeconomic environment, PC inventory correction, contraction in the server market and high debt burden are affecting its margins. A highly competitive market and manufacturing delays are hurting Intel’s profitability. Signs of market saturation, foreign exchange headwinds and geopolitical instability are worrisome.
(You can read the full research report on Intel here >>>)
Shares of Qualcomm have underperformed the Zacks Wireless Equipment industry over the past six months (-15.1% vs. +12.9%). The company’s global presence exposes it to risk of trade disputes and geopolitical tensions. High dependence on smartphone industry is a headwind as weak consumer demand trends can significantly affect margins. Macroeconomic uncertainty and competition from other low-cost chip manufacturers remain other concerns.
Nevertheless, Qualcomm is well-positioned to benefit from solid 5G traction with greater visibility and a diversified revenue stream. The EDGE networking business is witnessing steady progress as it focuses on transitioning from a wireless communications firm for the mobile industry to a connected processor company for the intelligent edge.
It is likely to help users experience a seamless transition to super-fast 5G networks, delivering low-power resilient multi-gigabit connectivity with unprecedented range and best-in-class security.
(You can read the full research report on QUALCOMM here >>>)
Other noteworthy reports we are featuring today include Regeneron Pharmaceuticals, Inc. (REGN) and CME Group Inc. (CME).
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
AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth
Intel (INTC) Rides on Mobileye, Diverse Portfolio Strength
Qualcomm (QCOM) Remains Poised to Gain from Solid 5G Traction
Dupixent Profits Fuels Regeneron (REGN), Eylea Decline A Woe
Per the Zacks analyst, stellar performance of Dupixent fuels Regeneron even as lead drug Eylea faces challenges. The company's progress with the oncology portfolio and other candidates is also impress
CME Group (CME) Rides on Improving Trading Volume, Costs High
Per the Zacks analyst, better trading volume, sturdy market position and diverse product lines poise CME Group well for growth. However, escalating expenses remain a concern.
Business Separation & Regulated Investment Aid Exelon (EXC)
Per the Zacks analyst, Exelon's separation from Constellation Energy will allow former to focus on transmission & distribution operations. Its planned $31.3B investment will strengthen operation.
Credit Card Business Aids Capital One (COF) Amid Cost Woes
Per the Zacks analyst, Capital One's solid card and online banking business, along with its inorganic growth efforts will aid revenues. Elevated costs due to rise in marketing costs will hurt profits.
Robust Marketplace Activities & Services Benefit Etsy (ETSY)
Per the Zacks analyst, Etsy is gaining from solid momentum across buyers and sellers, and robust ad program, which are driving growth in its marketplace and services revenues, respectively.
Twilio (TWLO) Banks on Growing Active Customer Accounts
Per the Zacks analyst, Twilio's continued focus on introducing products as well as its go-to-market sales strategy is helping it grow its active customer accounts, which is driving top-line growth.
Solid Mine Performance Aids B2Gold (BTG) Amid Cost Woes
Per the Zacks analyst, B2Gold is set to gain from improved mine performances and recent acquisitions. However, inflationary costs will continue to hurt margins.
Enterprise (EPD) Banks on $6B of Key Midstream Projects
The Zacks analyst likes Enterprise since the partnership has $6.1 billion of key midstream projects, thereby securing additional cashflows.
Fleet Modernization & Cost-Cuts Aid Copa Holdings (CPA)
The Zacks analyst is impressed with Copa Holdings' efforts to modernize its fleet. The company's initiatives to check non-fuel unit costs are encouraging too.
Strategic Acquisitions Aid Builders FirstSource (BLDR)
Per the Zacks analyst, Builders FirstSource is benefiting from cost synergies and strategic acquisitions. Also, focus on investment in innovations and enhancing digital solutions bode well.
Trinity Industries (TRN) Reels Under High Labor Expenses
The Zacks analyst is worried about the company's weak liquidity position. Supply chain disruptions and high labor costs are also hurting Trinity's operation
G-III Apparel (GIII) Witnesses Inflationary & Other Woes
Per Zacks analyst, G-III Apparel is seeing inflationary pressures for a while. Also, the company is battling high SG&A costs. For the first quarter, it forecast adjusted loss per share of 5-15 cents.
Overdependence on NanoKnife Impairs AngioDynamics (ANGO)
The Zacks analyst is worried about AngioDynamics' continued overdependence on NanoKnife. Pricing pressure is an added issue.
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