Top Analyst Reports for AbbVie, Oracle & GlaxoSmithKline

Friday, June 19, 2020

 

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), Oracle Corporation (ORCL) and GlaxoSmithKline plc (GSK). 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 >>>

 

AbbVie’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past one-year period (+22.8% vs. +4%) on the back of the company's success in expanding labels of its cancer drugs, Imbruvica and Venclexta. In particular, Imbruvica has multi-billion-dollar potential. At the same time, AbbVie’s key drug, Humira continues to see strong demand trends in the United States. 

 

However, sales erosion due to direct biosimilar competition to Humira in international markets is a big headwind. Meanwhile, AbbVie expects slower new patient starts of physician-administered drugs to hurt sales in the second quarter.

 

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

 

Shares of Oracle have lagged the peer group lately, but the Zacks analyst believes that the company’s growing cloud business and the latest autonomous database is expected to boost its competitive position in the long haul. 

 

Strong adoption of cloud-based solutions, comprising NetSuite ERP, Fusion ERP and Fusion HCM, remained notable. In fact, 8x8 and Zoom Video Communications recently selected Oracle Cloud Infrastructure services to address business needs, which is a testament to the strength of its cloud offerings. Solid demand for Autonomous Database supported by ML is anticipated to also drive top line.

 

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

 

GlaxoSmithKline’s shares have gained +22.8% over the past three months compared to the Zacks Large Cap Pharmaceuticals industry’s rise of +23.0%. The Zacks analysts sees that Glaxo’s three newest products, Trelegy Ellipta, Shingrix and Juluca, are doing well, particularly Shingrix. These products coupled with restructuring in the Consumer Health unit have strengthened Glaxo’s competitive position.

 

The Zacks analyst is further encouraged by the company’s initiative to focus on its oncology pipeline. In 2020, Glaxo expects at least six potential approvals in oncology, HIV, and respiratory areas. However, pricing pressure and competitive dynamics due to generic competition for key drug, Advair, are hampering sales of Glaxo’s respiratory products. Also, competitive pressure on HIV drugs has risen.

 

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

 

Other noteworthy reports we are featuring today include The Kroger Co. (KR), General Dynamics Corporation (GD) and The Southern Company (SO).

 

5 Stocks to Soar Past the Pandemic: In addition to the companies you learned about above, we invite you to learn about 5 cutting-edge stocks that could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of the decade.

 

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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

AbbVie (ABBV) Pipeline Solid, Skyrizi, Rinvoq Show Potential

Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships

Glaxo's (GSK) Pipeline Growing Amid Rising Competition

Featured Reports

Order Flows Aid General Dynamics (GD), Delayed Deliveries Hit

Per the Zacks analyst, steady order flows bolsters General Dynamics' revenue generation prospects. Yet delayed jet deliveries owing to coronavirus outbreak may hurt its results in the near term.

Southern Company (SO) Buoyed by Regulated Customer Growth

The Zacks analyst believes that increase in Southern Company's regulated business customer base will support its revenue growth but is concerned over timing and cost overrun related to Vogtle project.

Low Fuel Costs Keep Alaska Air (ALK) Afloat Amid Weak Demand

Per the Zacks analyst, although demand is improving lately, it is way below the year-ago levels.

TELUS (TU) Gains From Subscriber Additions Amid Pricing Woes

Per the Zacks analyst, TELUS continues to benefit from subscriber addition under its key growth segments, including wireless, high-speed Internet and TELUS TV, despite an intensely competitive market.

Increased Market Volatility Aids Virtu Financial (VIRT)

Per the Zacks analyst, it continues to gain from the current market volatility induced by COVID-19 pandemic.

Luminex (LMNX) Gains Ground on ARIES Platform, Costs a Woe

Per the Zacks analyst, Luminex's flagship ARIES system has been making significant progress and continues to boost the company's top line.

Contact Lens Sales Aid National Vision (EYE) Amid the Pandemic

The Zacks analyst is impressed with National Vision's robust contact lens revenue growth due to lesser impact of store closures on customer transactions despite the pandemic-led business disruptions.

New Upgrades

William-Sonoma (WSM) Banks on E-Commerce Expansion For Growth

Per the Zacks analyst, continued enhancement of e-commerce channel, optimization of supply chain and focus on product innovation are expected to drive growth.

Kroger's (KR) Customer 1st, Restock Program to Aid Top Line

Per the Zacks analyst, Kroger's customer 1st strategy, restock program and digital endeavors will help drive growth. The company remains well poised to enhance identical supermarket sales and margins.

Momenta (MNTA) Pipeline, Biosimilars Promises Potential

Per the Zacks analyst, Momenta's decision to focus on the discovery and development of novel drugs is positive. The company also narrowed its focus on the biosimilars' portfolio which is encouraging.

New Downgrades

Softness in Michael Kors May Hit Capri Holdings (CPRI) Sales

Per the Zacks analyst, Michael Kors, which accounts for a major portion of Capri Holdings' revenues, has been struggling. During third-quarter fiscal 2020, revenue contribution from the brand fell 5.1

Rising Costs, Concentration Risk Hurt Texas Capital (TCBI)

Per Zacks analyst, Texas Capital's bottom-line remains under pressure due to rising costs through efforts to hire experienced bankers. Also, lack of geographical diversification keeps us apprehensive.

Weak European Market & High SG&A Expense Ail LKQ Corp (LKQ)

Declining sales in Europe amid softer economic environment to hurt LKQ's sales and earnings going forward. The Zacks analyst is also worried about rising SG&A expenses which may further clip margins.

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Southern Company The (SO) : Free Stock Analysis Report
 
Oracle Corporation (ORCL) : Free Stock Analysis Report
 
The Kroger Co. (KR) : Free Stock Analysis Report
 
GlaxoSmithKline plc (GSK) : Free Stock Analysis Report
 
General Dynamics Corporation (GD) : Free Stock Analysis Report
 
AbbVie Inc. (ABBV) : Free Stock Analysis Report
 
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