Monday, July 06, 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 Novartis (NVS), Equinix (EQIX) and Newmont (NEM). 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 >>>
Novartis shares have lagged the Zacks Large-Cap Pharmaceuticals industry over the past year (-3.5% vs. +6.9%), but the Zacks analyst believes that solid performance of key drugs like Cosentyx and Entresto, and contributions from Kisqali and gene therapy, Zolgensma, have improved the company's long-term prospects.
Moreover, the company maintained its annual outlook even amid uncertainties related to the coronavirus pandemic. While the impact of forward purchasing will be reversed as the year progresses, these drugs and new launches like Piqray, Mayzent and Beovu should further boost sales.
The biosimilar portfolio also gains traction with new key approvals. However, price erosion in the United States has adversely impacted the generics business. Moreover, pipeline setbacks and generic competition are concerning.
(You can read the full research report on Novartis here >>>)
Shares of Equinix have gained +23.5% over the past six months against the Zacks Retail REIT industry’s fall of -23.3%. The need to work remotely amid the pandemic is driving the demand for interconnected data-center space. The Zacks analyst believes that Equinix, with its interconnectivity-focused global data-center portfolio, is well-positioned to benefit from the tailwind.
Equinix added its 9th IBX data center in the Dallas Infomart Data Center campus in June. The $142-million data center expands its footprint in the Dallas metro area. The company also closed a public offering of four series of senior notes, with $2.6 billion in principal amount.
Also, acceleration in cloud adoption is driving growth for its interconnected ecosystems. Equinix has delivered 69 consecutive quarter revenue growth. Yet, capital-intensive activities amid rising debts are concerning. Also, stiff competition may impact pricing power.
(You can read the full research report on Equinix here >>>)
Newmont’s shares have gained +22% over the past three months against the Zacks Mining - Miscellaneous industry’s rise of +30.3%. The Zacks analyst believes that the company is likely to gain from a number of projects including the Tanami expansion, Subika Underground and Ahafo mill expansion.
Moreover, the merger with Goldcorp is expected to be value-accretive to its cash flow and generate significant synergies. Higher gold prices are also expected to continue boosting earnings amid market volatility and economic uncertainties. Newmont is also progressing well on its efficiency improvement programs and remains committed to boost shareholders’ value. However, it faces headwinds from higher production costs.
Expected decline in gold production in the second quarter and 2020 is also likely to hurt the company’s margins. It also faces challenges in the copper market. Lower demand in China and stretched valuation are other concerns.
(You can read the full research report on Newmont here >>>)
Other noteworthy reports we are featuring today include Enterprise Products Partners (EPD), Manulife Financial (MFC) and Franco-Nevada (FNV).
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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
New Drugs Boost Novartis (NVS) Amid Generic competition
Expansion Strategy Boosts Equinix (EQIX) Despite Rising Debt
Growth Projects Aid Newmont (NEM) Amid Cost Woes
Enterprise (EPD) Banks on $7B Major Midstream Projects
Enterprise will generate additional fee-based revenues from its $7 billion of key midstream projects. However, significant debt exposure concerns the Zacks analyst.
Manulife Financial's (MFC) Buyouts Aid, Expenses High
Per the Zacks analyst, acquisitions have helped Manulife to increase scale of its core business lines and strengthen its presence in markets.
Gold Prices, Liquidity Aid Franco-Nevada, Low Oil Prices Ail
Per the Zacks analyst, a debt-free balance sheet, the ongoing rally in gold prices and cost management efforts will drive Franco-Nevada despite the impact of low oil prices on its energy assets.
Suncor (SU) Buoyed by Integrated Business Model
The Zacks analyst believes that Suncor's integrated business model positions it well for strong cash flow generation.
Kellogg (K) Gains on COVID-19 Led Demand, Cost Concerns Stay
Per the Zacks analyst, Kellogg has been gaining on increased demand for packaged food products amid the coronavirus-led stockpiling.
New Virtual Solutions Launch Aids Align (ALGN) amid Pandemic
Amid coronavirus mayhem, the Zacks analyst is bullish on Align's latest launches of two virtual clear aligner solutions that can help connect and provide care to existing Invisalign patients remotely.
Moderna's (MRNA) Progress With Coronavirus Vaccine Is Promising
Per the Zacks analyst, Moderna's foray into development of mRNA-based vaccine for COVID-19 is boosting the company's prospects.
BioMarin (BMRN) Focus on Valrox's Potential Approval
BioMarin's regulatory applications for Roctavian/valrox, a gene therapy for hemophilia A, are under review. The Zacks analyst believes the candidate could be transformational, if approved this year.
Construction Materials to Drive Carlisle's (CSL) Revenues
Per the Zacks analyst, strong traction of Carlisle's Construction Materials segment, fueled by solid demand for commercial roofing products and robust backlog should continue to drive its revenues.
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.
Toyota (TM) to be Hurt by Rising R&D Costs & Elevated Debt
Per the Zacks analyst, high R&D expenses on advanced technologies are likely to dent near-term margins of Toyota. High debt levels also restrict the financial flexibility of the firm.
Strong Portfolio Aids Take Two (TTWO) Amid Stiff Competition
Per the Zacks analyst, Take-Two's popular franchises including NBA 2K20 and Grand Theft Auto V is helping it to counter stiff competition from the likes of EA and Activision Blizzard.
Lower Customer Capex & Project Delays to Hurt KBR (KBR)
Per the Zacks analyst, reduced customer capex, project cancellations, and delays may impact KBR's Energy Solution business.
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Novartis AG (NVS) : Free Stock Analysis Report
Newmont Corporation (NEM) : Free Stock Analysis Report
Manulife Financial Corp (MFC) : Free Stock Analysis Report
FrancoNevada Corporation (FNV) : Free Stock Analysis Report
Equinix, Inc. (EQIX) : Free Stock Analysis Report
Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report
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