Top Analyst Reports for Microsoft, Nike & Novo Nordisk

Friday, June 11, 2021

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 Microsoft (MSFT), Nike (NKE), and Novo Nordisk (NVO). These reports have been hand-picked from the roughly 70 published by our analyst team today.

You can see all of today’s research reports here >>>

Shares of Microsoft have outperformed the S&P 500 in the year-to-date period (+16.2% vs. +14.3%). The Zacks analyst believes that Microsoft is benefiting from the adoption of Azure services amid accelerated global digital transformation. Moreover, solid uptake of new Xbox consoles is aiding top-line expansion.

The company is also witnessing growth in the user base of its different applications, including Microsoft 365 suite and Dynamics. However, Microsoft expects Surface as well as Xbox Content and services revenue to decline in the fiscal fourth quarter, owing to tough year-over-year comparisons.

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

Nike’s shares have lost -3.6% over the last six months against the Zacks Shoes and Retail Apparel industry’s loss of -0.8%. But the Zacks analyst believes that Nike has been witnessing strong digital trends, which demonstrates strength in its brands and investments made over the past several years to improve the digital consumer experience.

Nike’s top and bottom lines improved year over year in third-quarter fiscal 2021, while earnings beat estimates for the third time in the fiscal year. Digital sales for the Nike brand improved double digits across North America, Greater China, and APLA along with triple-digit growth in EMEA.

However, the company has been witnessing lower revenues in its wholesale business and Nike-owned stores due to the pandemic-led disruptions. In fact, revenues declined across all the regions, except for Greater China.

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

Shares of Novo Nordisk have gained 19.6% in the past three months against the Zacks Large Cap Pharmaceuticals industry’s gain of 11.9%. The Zacks analyst believes Victoza, Ozempic, Xultophy and Saxenda have been helping the company maintain momentum. Label expansion of existing drugs is likely to further boost sales.

In 2021, the company will continue to focus on commercial execution while conducting more late-stage clinical studies than ever to meet the needs of the people living with diabetes and other serious chronic diseases. However, lower realized prices in the United States, loss of exclusivity for products in hormone replacement therapy and intensifying competition are likely to impact sales.

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

Other noteworthy reports we are featuring today include Caterpillar (CAT), General Electric (GE) and Fiserv (FISV).

+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities

In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.

Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.

Click here to download this report FREE >>

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

Microsoft (MSFT) Gains from Adoption of Azure & Teams App

Strength in NIKE's (NKE) Digital Business Aids Top Line

Novo Nordisk's (NVO) Diabetes Drugs Aid Growth Amid Rivalry

Featured Reports

Rising Demand, Strategic Initiatives Aid Caterpillar (CAT)

Per the Zacks analyst, Caterpillar is poised to gain from improving demand in its end markets and focus on strategic investments in expanded offerings, and services, and digital initiatives.

Acquisitions to Aid General Electric (GE), Aviation Woes Hurt

Per the Zacks analyst, General Electric (GE) is poised to benefit from acquired assets, including Zionexa buyout completed in May, and solid contract wins.

Fiserv (FISV) Rides on Buyouts, Product Suite Amid Debt Woes

The Zacks analyst likes Fiserv's acquisition strategy to widen its client base and enhance its product portfolio. High debt may limit the company's future expansion and worsen its risk profile.

Solid COVID-19 Testing Revenues, Regulatory Nods Aid BD (BDX)

The Zacks analyst is upbeat about BD's strong revenue growth on continued strength in COVID-19 testing. A slew of regulatory approvals also buoys optimism.

Growth Investments Aids ABB Despite Weak Market Demand

Per the Zacks analyst, ABB's organic growth investments along with diligent cost-cutting actions will boost its competency.

5G Portfolio & Partnerships Aid Nokia (NOK) Amid Competition

Per the Zacks analyst, Nokia is well-positioned to benefit from its industry-leading 5G product and services portfolio, alongside partnerships with communications service providers all over the world.

Tyson Foods (TSN) Gains From Retail Demand Amid COVID-19

Per the Zacks analyst, Tyson Foods is gaining from burgeoning demand in its retail channel amid COVID-19.

New Upgrades

Adobe (ADBE) Rides on Growing Adoption of Cloud Applications

Per the Zacks analyst, solid momentum across Creative Cloud, Document Cloud, and Experience Cloud services are aiding Adobe's cloud business which generates a significant amount of revenues.

Higher Coupa Pay & Cloud-Based BSM Adoption Aids Coupa (COUP)

Per the Zacks analyst, Coupa Software's growth can be attributed to the robust adoption of its Coupa Pay offerings and cloud-based Business Spend Management (BSM) solutions.

Rising Loans Aid UMB Financial (UMBF), Capital Level Solid

Per the Zacks analyst, improving loan and deposit balances are likely to drive UMB Financial's organic growth. Also, investment in technology, supported by a strong capital base, is a positive.

New Downgrades

Turnaround Costs, Supply Constraints Ail Dow (DOW)

Per the Zacks analyst, increased plant turnaround costs will weigh on the company's margins. It also faces headwinds from third-party supply constraints on the U.S. Gulf Coast. n

Weakness in Aerospace, Turnarounds Hurt Huntsman (HUN)

Per the Zacks analyst, softness in the aerospace market will hurt volumes in Huntsman's Advanced Materials unit. Costs associated with turnarounds will also weigh on Polyurethanes margins.

Covid-19 Impacts, High Tariff Hurts Canadian Solar (CSIQ)

Per the Zacks analyst, global demand for solar equipment will decline for the first time in 20 years, due to covid-19. Also, the imposition of tariffs on solar panels and module imports are tailwinds.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Novo Nordisk AS (NVO) : Free Stock Analysis Report
 
NIKE, Inc. (NKE) : Free Stock Analysis Report
 
Microsoft Corporation (MSFT) : Free Stock Analysis Report
 
General Electric Company (GE) : Free Stock Analysis Report
 
Fiserv, Inc. (FISV) : Free Stock Analysis Report
 
Caterpillar Inc. (CAT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research