Friday, September 30, 2022
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Novo Nordisk A/S (NVO), Suncor Energy Inc. (SU) and Nasdaq, Inc. (NDAQ). 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 >>>
Novo Nordisk shares have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+4.7% vs. +7.1%). The Zacks analyst believes that lower realized prices in the United States, loss of exclusivity for products and stiff competition are affecting company’s sales. Sales are also being negatively impacted by the COVID-19 pandemic. The supply challenges for Wegovy have impacted the stock. The patent expiry on some of the products in Novo Nordisk’s portfolio remains a woe.
However, the promising diabetes drug, Ozempic, is off to a solid start since its launch. The drug remains the growth engine for the company. The launch of Rybelsus also looks impressive. Novo Nordisk has one of the broadest diabetes portfolios in the industry. Drug sales have been gaining and maintaining momentum.
(You can read the full research report on Novo Nordisk here >>>)
Suncor Energy’s shares have advanced +35.1% over the past year against the Zacks Oil and Gas - Integrated - Canadian industry’s gain of +42.8%. The Zacks analyst believes that the company has an impressive supply chain network, owning significant oil sands and conventional production platforms, along with a strong downstream portfolio. Suncor Energy is one of the best positioned companies in the energy space given its access to abundant resources, rich operating experience and technical know-how. Suncor Energy's major projects, including Fort Hills and Syncrude, should support its growth momentum.
The company's strong liquidity and modest near-term debt maturities are other positives. Moreover, Suncor Energy plans to maintain a disciplined capital approach and estimates to repay further debt in 2022, thereby indicating its ability to generate cash flow.
(You can read the full research report on Suncor Energy here >>>)
Nasdaq shares have outperformed the Zacks Securities and Exchanges industry over the past three-month period (+10.1% vs. -4.4%). The Zacks analyst believes that the company has been successful in maximizing opportunities as a technology and analytics provider and growing core marketplace businesses. Focus on growth via acquisitions and organic initiatives, which aided its entry into new markets and helped it gain cross-selling opportunities, bodes well. Intense focus on Market Technology and Information Services businesses also helps the company to explore vast opportunities per its developmental strategies.
Nasdaq remains committed to deploy capital effectively by investing in organic growth initiatives. Its board announced a three-for-one stock split in the form of a stock dividend. However, high expenses weigh on margin expansion. High leverage ratio poses risk.
(You can read the full research report on Nasdaq here >>>)
Other noteworthy reports we are featuring today include W.W. Grainger, Inc. (GWW), Textron Inc. (TXT), and Magnolia Oil & Gas Corporation (MGY).
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
Novo Nordisk's (NVO) Diabetes Drugs Aid Growth Amid Rivalry
Suncor (SU) Buoyed by Integrated Business Model
Accelerating Non-Trading Revenue Base Aids Nasdaq (NDAQ)
Innovations to Aid Textron (TXT), Supply Shortage May Hurt
Per the Zacks analyst, new product launch will enable Textron to capture more shares in the market. Yet COVID-19 induced global supply chain shortage might hurt deliveries and thereby its revenues.
High-Quality Eagle Ford Acreage to Aid Magnolia (MGY)
The Zacks analyst likes Magnolia Oil and Gas' high-quality acreage in the Eagle Ford shale but is worried over the absence of any hedge protection to tackle commodity price volatility.
International Operations Aid FTI Consulting (FCN), Cost High
Per the Zacks analyst, FTI Consulting's strong international operations make it an excellent partner for global clients, generating continued revenue growth. Rising investment costs is a concern.
Defense Wins Aid Oshkosh (OSK) Amid Cost Inflation
Program wins like USPS, NGDC, MCWS in the Defense segment drive long-run growth for Oshkosh. However, per the Zacks analyst, soaring costs of material and freight decrease manufacturing efficiency.
Blackberry (BB) To Benefit From Strong Product Portfolio
Per the Zacks analyst, Blackberry's performance benefitted from strong revenue growth across all business segments. However, pandemic-related supply-chain issues remain concerns.
Strong Demand, Growth in E-Commerce Sales Aid Grainger (GWW)
Per the Zacks analyst, Grainger is poised well to gain on strong demand in its end markets and efforts to strengthen customer relationships and investment in e-commerce and digital capabilities.
Higher Jet Engine Product Demand, Transformation Drive ATI
Per the Zacks analyst, higher demand for jet engine products will drive results in ATI's HPMC segment. It will also gain from actions to improve cost structure through transformation efforts.
Low Volumes in Tools & Outdoor Unit Hurt Stanley Black (SWK)
The Zacks analyst is concerned about volume softness in the Tools & Outdoor segment due to reduced consumer spending as a result of an increase in interest rates and a spike in fuel prices.
Low Iron Ore Prices & High Costs Hurt National Steel (SID)
The Zacks analyst is concerned that the recent downtrend in iron ore prices and higher costs for raw materials and fuel rising cost will weigh on National Steel's margins.
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Textron Inc. (TXT) : Free Stock Analysis Report
Nasdaq, Inc. (NDAQ) : Free Stock Analysis Report
Novo Nordisk AS (NVO) : Free Stock Analysis Report
Suncor Energy Inc. (SU) : Free Stock Analysis Report
W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report
Magnolia Oil & Gas Corp (MGY) : Free Stock Analysis Report
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