Yahoo Finance Top Analyst Reports for Novartis, American Express & ConocoPhillips
Monday, April 22, 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 Novartis AG (NVS), American Express Company (AXP) and ConocoPhillips (COP). 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 Novartis have gained +2.3% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +16.2%. The company’s efforts to restructure its business are encouraging. With the separation of Sandoz, it has become a pure-play pharmaceutical company.
Drugs like Entresto, Kesimpta, Zolgensma, Kisqali and Leqvio continue to fuel growth and offset the impact of generic competition. The uptake of Pluvicto and Scemblix has been outstanding and should fuel top-line growth. The acquisition of Chinook Therapeutics has strengthened its renal pipeline.
However, generic competition for key drugs like Gilenya and pipeline setbacks are concerning. Earnings estimates for the first quarter are static ahead of the quarterly results.
(You can read the full research report on Novartis here >>>)
American Express shares have outperformed the Zacks Financial - Miscellaneous Services industry over the past year (+44.1% vs. +17.1%). The company’s growth initiatives, like launching new products, reaching new agreements and forging alliances, are boosting its revenues. Consumer spending on T&E, which carries higher margins for AmEx, is advancing well.
American Express’ balance sheet looks strong with ample cash. Solid cash-generation abilities enable the pursuit of business investments and prudent deployment of capital via buybacks and dividends.
However, with higher utilization of the firm’s cards, expenses in the form of card member services and card member rewards are likely to go up and strain its margins. Its current debt level amid a high-interest rate environment induces a rise in interest expenses. As such, the stock warrants a cautious stance.
(You can read the full research report on American Express here >>>)
Shares of ConocoPhillips have outperformed the Zacks Oil and Gas - Integrated - United States industry over the past year (+27.8% vs. +20.3%). The company is poised for a robust oil and natural gas production outlook, benefiting from its extensive untapped drilling locations in cost-effective and diverse upstream assets such as Eagle Ford shale, Permian Basin and Bakken shale.
ConocoPhillips is strategically expanding its presence in the liquefied natural gas market to address the growing demands of energy transition toward a low-carbon future. Further, ConocoPhillips’ minimal debt exposure provides resilience during periods of low commodity prices and enhances its capacity to increase dividends.
However, a significant reliance on crude exposes the exploration and production firm to oil price fluctuations. On the cost front, inflationary pressures may contribute to a significant increase in production and operating expenses in 2024, thereby squeezing margins.
(You can read the full research report on ConocoPhillips here >>>)
Other noteworthy reports we are featuring today include Netflix, Inc. (NFLX), Eaton Corporation plc (ETN) and Schlumberger Limited (SLB).
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
Entresto, New Drugs Fuel Novartis (NVS) Amid Competition
Improving Volumes Aid American Express (AXP), High Costs Hurt
Increasing Global LNG Footprint Aids ConocoPhillips (COP)
Featured Reports
Robust Content Aids Netflix (NFLX) Amid Stiff Competition
Per the Zacks analyst, Netflix's robust content portfolio is driving subscriber addition that is helping to it steer away competition from Hulu, HBO and Amazon Prime.
New Product Development, Wide Market Reach Aid Eaton (ETN)
Per the Zacks analyst Eaton's operations in 175 countries across the world and development of new products through ongoing R&D investments will continue to drive demand and boost profitability.
Robust Activities in Asia & the Middle East to Benefit SLB
The Zacks analyst likes SLB as robust activities in international markets like Asia and the Middle East are aiding its earnings. However, rising oilfield services costs are concerning.
Cloud, IoT, IT Security Services Demand Aid Infosys (INFY)
Per the Zacks analyst, Infosys is benefitting from strong demand for its services in the cloud, the Internet of Things (IoT), cyber security, and data and analytics.
Dollar General's (DG) Better Price, Comps Run to Aid Sales
Per the Zacks analyst, Dollar General's better pricing, private label offerings, and merchandise initiative should drive sales. Management foresees same-store sales growth of 2-2.7% for fiscal 2024.
Healthcare Business Growth Aid STERIS (STE) Amid Forex Woes
The Zacks analyst is impressed with STERIS' growth in Healthcare business led by the addition of surgical instrumentation assets purchased from BD. Yet, foreign exchange woes remain a concern.
Expansion Plans Aid Boise Cascade (BCC), High Costs Ail
Per the Zacks analyst, Boise Cascade is aiding from manufacturing and distribution facilities expansion strategies and a vertically integrated business model. Yet, increasing costs and expenses hurt.
New Upgrades
Brown & Brown (BRO) Gains on Solid Organic, Inorganic Growth
Per the Zacks analyst, Brown & Brown is set to grow on strategic acquisitions and mergers, which enhance its capabilities. Also, higher commissions and fees position it well for growth.
Loan Growth Aids First Horizon (FHN), Liquidity Level Solid
Per the Zacks analyst, a strong presence across attractive high-growth markets will drive loan growth for First Horizon. Strong liquidity level will support capital distribution activities.
Badger Meter (BMI) Gains From Continued Strong Demand Trends
Per the Zacks analyst, Badger Meter is gaining from continued strong demand trends for its differentiated smart water solutions coupled with strong operational execution.
New Downgrades
C.H. Robinson (CHRW) Grapples With Challenging Freight Market
Per the Zacks Analyst, lower pricing in the ocean and truckload services and overall weak freight demand hurt C.H. Robinson's fourth-quarter 2023 results.
Aerospace Systems Unit Aids Parker-Hannifin (PH), Costs Hurt
Per the Zacks analyst, Parker-Hannifin benefits from strength in the Aerospace Systems unit, led by strong momentum in the commercial aftermarket end market. High operating costs remain a woe.
Live Nation Entertainment (LYV) Hurt by High Venue Costs
Per the Zacks analyst, increased venue costs and service fees are likely to hurt the company. Moreover, higher labor-hiring, artist activation and other operational expenses also remains a concern.
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Novartis AG (NVS) : Free Stock Analysis Report
Schlumberger Limited (SLB) : Free Stock Analysis Report
ConocoPhillips (COP) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
American Express Company (AXP) : Free Stock Analysis Report
Eaton Corporation, PLC (ETN) : Free Stock Analysis Report
