Top Analyst Reports for Visa, Coca-Cola & AbbVie

Tuesday, January 8, 2018

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 Visa (V), Coca-Cola (KO) and AbbVie (ABBV). 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 >>>

Visa’s shares have outperformed the Zacks Financial Transaction Services industry over the past year (+14.2% vs. +6.2%). The Zacks analyst thinks numerous strategic acquisitions and alliances, technology upgrades and effective marketing have paved the way for long-term growth and consistent revenue rise.

Visa is well poised to gain from the growing electronic payment processing and strong international business. The stock has seen the Zacks Consensus Estimate for current-year earnings being revised 0.3% upward over the last seven days. Nevertheless, high client incentives and operating expenses and foreign exchange volatility might put pressure on margins.

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

Shares of Buy-ranked Coca-Cola have outperformed the Zacks Soft Drinks Beverages industry in the past six months, (+5.7% vs. -9.4%), driven by a solid surprise trend, which continued in third-quarter 2018. It delivered better-than-expected earnings and sales in the third quarter, marking the sixth straight quarter of earnings beat and fifth consecutive sales beat.

The Zacks analyst thinks it has been gaining from the ongoing productivity efforts and disciplined growth strategies. The company’s strategy of introducing new products, alongside focus on lifting and shifting successful brands globally is aiding performance. It is also benefiting from the acceleration of sparkling soft drinks category through investment and innovation.

However, reported revenues and operating margins were hurt by new accounting standards and currency headwinds. Going forward, the company expects unfavorable currency to hurt revenues and operating margin in the fourth quarter and full-year.

(You can read the full research report on Coca-Cola here >>>).

Buy-ranked AbbVie’s shares have lost 6.9% in the past six months, underperforming the Zacks Large-Cap Pharmaceuticals industry's rally of +5.8%. However, the Zacks analyst likes the fact that AbbVie’s key drug, Humira has been performing well based on strong demand trends despite new competition.

Moreover, Imbruvica has multibillion dollar potential. Mavyret’s launch has also been stronger than expected. AbbVie has also been successful in expanding approvals for its cancer drugs, Imbruvica and Venclexta. AbbVie has an impressive late-stage pipeline comprising several products with multibillion-dollar potential expected to be launched in the near term.

Th company expects to launch more than 20 new products or line extensions of marketed drugs before Humira biosimilar competition begins in the U.S. in 2023. However, direct biosimilar competition to Humira in Europe from October can erode revenues in 2019. Nonetheless, estimates have gone up ahead of Q4 earnings. AbbVie has a positive record of earnings surprises in the recent quarters.

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

Other noteworthy reports we are featuring today include Johnson & Johnson (JNJ), QUALCOMM (QCOM) and Duke Energy (DUK).

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Mark Vickery
Senior Editor

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

Visa (V) Rides on Acquisitions, Technological Investments

Strong Foothold in Emerging Markets to Aid Coca-Cola (KO)

AbbVie's (ABBV) Pipeline Solid, Key Launches Likely in Near Term

Featured Reports

QUALCOMM (QCOM) Rides on Portfolio Strength Amid Competition

Per the Zacks analyst, Qualcomm's leadership in chipset markets along with increased traction in 5G smartphones bode well for future growth despite stiff competition and continued legal tussles.

Investments Aid Duke Energy (DUK), Environmental Rules Hurt

Per the Zacks analyst, Duke Energy boasts a robust five-year capital plan and plans to invest about $48.2 billion during 2018-2022.

Becton (BDX) Gains from Prospects in the BD Medical Segment

Strong performance by Becton, Dickinson's BD Medical segment buoys optimism. The Zacks analyst believes the company's broad product spectrum provides it a competitive edge in the MedTech space.

Southern (SO) Buoyed by AGL Buy, Project Overruns Hurt

The Zacks analyst believes that AGL acquisition has helped Southern to bolster its customer base and business.

Project North Star to Drive Fifth Third's (FITB) Financials

Per the Zacks analyst, Fifth Third's Project North Star initiatives are expected to enhance revenue growth, lower expenses and optimize its balance sheet position by the end of 2019.

Strong Data Traffic & Security Solutions Aid Akamai (AKAM)

Per the Zacks analyst, Akamai's strong media division traffic, growing adoption of cloud-based security solutions and robust over-the top (OTT) content viewing will drive the top and bottom line.

Strategic Education (STRA) Rides on Strong Enrollments

Per the Zacks analyst, Strategic Education's convenient, accessible and flexible programs will boost enrollment and revenues.

New Upgrades

Higher Transaction Fees Continue to Aid Cboe Global (CBOE)

Per the Zacks analyst, increasing transaction fees, owing to higher trading volume, will continue to boost Cboe Global Markets' revenues, thereby resulting in the company???s overall growth.

Restructuring & Self-Driving Moves Aid General Motors (GM)

Per the Zacks analyst, General Motors' restructuring moves, which includes production halt and job cuts, are likely to drive profits. It is also making serious efforts on the self-driving front.

DXC Technology (DXC) Rides on Cloud Business, Acquisitions

Per the Zacks analyst, growing demand for multi-cloud solutions is driving DXC Technology's cloud business. Moreover, focus on acquisitions is helping it gain access to newer markets.

New Downgrades

Talc Concerns Hurting J&J's (JNJ) Stock Amid Improving Sales

Though J&J's sales trends are improving, the Zacks analyst says that allegations that its talc/baby powders contain asbestos which causes cancer has been an overhang on the stock's price lately.

Falling Copper Prices, Rising Cash Costs Ail Freeport (FCX)

Per the Zacks analyst, higher unit net cash costs for copper is likely to hurt Freeport's margins. Falling copper prices and worries over copper demand due to trade tensions are other concerns.

Elevated Expenses, High Debt Level Hurt Invesco (IVZ)

Per the Zacks analyst, rise in expenses, driven by Invesco's inorganic growth efforts might hurt its profitability. Also, high debt level may place the company in a disadvantageous position.

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Visa Inc. (V) : Free Stock Analysis Report
 
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
 
Coca-Cola Company (The) (KO) : Free Stock Analysis Report
 
Johnson & Johnson (JNJ) : Free Stock Analysis Report
 
Duke Energy Corporation (DUK) : Free Stock Analysis Report
 
AbbVie Inc. (ABBV) : Free Stock Analysis Report
 
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