Yahoo Finance Top Analyst Reports for Novo Nordisk, Bank of America & Netflix
Tuesday, November 21, 2023
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 Novo Nordisk A/S (NVO), Bank of America Corporation (BAC) and Netflix, Inc. (NFLX). 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 Novo Nordisk have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+81.2% vs. +11.7%). The company beat earnings and revenue estimates in Q3 due to higher GLP-1 product sales. It has one of the broadest diabetes portfolios in the industry. Ozempic and Rybelsus have been performing well in the diabetes market.
Obesity drug Wegovy has been enjoying increasing demand. Label expansions of diabetes and obesity care drugs in cardiovascular and other indications will likely boost sales. Novo Nordisk raised its 2023 view due to higher demand for Ozempic and Wegovy. Its diversifying efforts to develop new treatments are encouraging.
However, stiffer competition from pharma bigwigs like Pfizer, who are likely to eat away from Novo Nordisk’s Diabetes care market share due to serious supply constraints in international markets. Patent expiry and pricing pressure across the diabetes market also remain a woe.
(You can read the full research report on Novo Nordisk here >>>)
Shares of Bank of America have gained +7.6% over the past six months against the Zacks Banks - Major Regional industry’s gain of +9.9%. The company’s third-quarter 2023 results reflect higher revenues and costs. Because of inflationary pressure, overall costs are expected to remain elevated.
The current tough macroeconomic outlook might weigh on the company’s investment banking (IB) business. This, along with the volatile nature of the capital markets, might hurt non-interest income growth.
Despite these headwinds, we believe that higher rates and decent loan demand will keep aiding the company’s net interest income (NII) growth, which the Zacks analyst expects to grow 8.5% this year. The opening of financial centers and improving digital capabilities is expected to further aid the top line.
(You can read the full research report on Bank of America here >>>)
Shares of Netflix have outperformed the Zacks Broadcast Radio and Television industry over the past year (+65.5% vs. +29.3%). The company is benefiting from growing subscriber base thanks to a robust portfolio. Crackdown on password-sharing and the introduction of paid sharing in more than 100 countries, which represents more than 80% of Netflix’s revenue base, is also expected to aid growth.
Netflix’s diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content, has been driving its growth prospects.
However, stiff competition in the streaming space from the likes of Apple, Amazon Prime Video, Disney+, Peacock and Paramount+ is a headwind. Netflix’s leveraged balance sheet and a higher streaming obligation are concerns. Additionally, unfavorable forex is expected to hurt operating income in the fourth quarter of 2023.
(You can read the full research report on Netflix here >>>)
Other noteworthy reports we are featuring today include Johnson & Johnson (JNJ), Abbott Laboratories (ABT) and TotalEnergies SE (TTE).
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
Wegovy & Ozempic Drive Novo Nordisk (NVO), Competition Stiff
Higher Rates Aid Bank of America (BAC) Amid Fee Income Woes
Netflix (NFLX) Benefits from Paid Sharing & Robust Portfolio
Featured Reports
J&J (JNJ) Pharma and MedTech Unit to Drive Growth
J&J's Pharma sales are being driven by existing key drugs and new products. The Zacks analyst believes J&J's MedTech unit is showing improving trends driven by recovery in surgical procedures.
Market Share Gain, EPD Business Growth Aid Abbott (ABT)
The Zacks analyst is impressed with Abbott's strong market share gains in core businesses. Within Established Pharmaceuticals, robust performance in key emerging markets is encouraging.
Expanding LNG & Clean Energy Assets Aid TotalEnergies (TTE)
Per the Zacks analyst TotalEnergies's presence in entire LNG value chain and expansion of clean energy generation through joint venture and acquisition will boost its performance.
Transformation Initiatives Aid ADP, Escalating Expenses Hurt
The Zacks analyst is positive about ADP's transformation initiatives that are helping the company to innovate, improve operations and expand margins. Rising expenses remain a concern.
EOG Resources (EOG) Banks on Oil-Rich Permian Basin
With highly productive acreages in the oil-rich Permian basin, EOG Resources' production outlook seems bright. However, rising lease and well expenses concerns the Zacks analyst.
Colgate's (CL) Higher Pricing & Productivity Aid Margins
Per the Zacks analyst, Colgate's strong pricing, benefits of funding growth and other productivity plans, are aiding gross margin. It expects continued adjusted gross margin growth in FY23.
Improvement in Mass Capacity Demand to Drive Seagate (STX)
Per the Zacks analyst, Seagate's performance is likely to gain from improving demand for mass capacity storage solutions among domestic cloud customers amid persisting global macroeconomic weakness.
New Upgrades
CNA Financial (CNA) Poised to Grow on Improving Premiums
Per the Zacks analyst, CNA Financial is poised to row on rising premiums driven by compelling product portfolio, better retention, improving pricing, and new business growth.
EMCOR (EME) Benefits From Solid Demand in the US Businesses
Per the Zacks analyst, EMCOR's U.S. businesses remain solid during the third quarter, backed by solid end-market demand and top-tier execution initiatives.
Cost-Cutting Actions, Solid Order Trends Aid Apogee (APOG)
Per the Zacks analyst, Apogee's efforts to cut costs, and improve productivity and efficiency will drive its growth. Strong project pipeline and order trends will continue to boost results.
New Downgrades
Lower Production & High Costs to Hurt Southern Copper (SCCO)
The Zacks analyst is worried that lower production due to lower ore grades at Cuajone and high labor and operating costs will hurt the company's results.
High Costs, Macroeconomic Concern Hurt Moelis & Company (MC)
Per the Zacks analyst, elevated costs might hurt Moelis & Company's bottom line. Amid the economic uncertainity, geopolitical and macroeconomic headwinds are likely to affect the company's growth.n
Weaker Seasonality, Lower COVID Sales Drag Walgreens (WBA)
The Zacks Analyst is worried about Walgreens facing further slowdown in respiratory events and macroeconomic driven consumer pressure. Impact from lower COVID-19 related contributions adds to worry.
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Bank of America Corporation (BAC) : Free Stock Analysis Report
Abbott Laboratories (ABT) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
Novo Nordisk A/S (NVO) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report
