Yahoo Finance Top Analyst Reports for PepsiCo, AbbVie & Honeywell
Tuesday, June 20, 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 PepsiCo, Inc. (PEP), AbbVie Inc. (ABBV) and Honeywell International Inc. (HON). 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 >>>
PepsiCo shares have gained +3.4% over the past six months against the Zacks Beverages - Soft drinks industry’s gain of +7.4%. The company’s results reflect gains from strength and resilience in its diversified portfolio, modernized supply chain, improved digital capabilities, flexible go-to-market distribution systems and robust consumer demand trends.
It also gained from the resilience and strength in the global beverage and convenient food businesses. However, PepsiCo witnessed margin pressures in the first quarter driven by impacts of supply-chain disruptions and inflationary labor, transportation and commodity costs. Adverse currency rates also remain headwinds.
(You can read the full research report on PepsiCo here >>>)
Shares of AbbVie have gained +0.4% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +17.5%. The company has several new drugs in its portfolio that have the potential to drive the top line to make up for lost Humira revenues.
Skyrizi and Rinvoq have established outstanding launch trajectories bolstered by the approval in new indications. It has several early/mid-stage candidates that have blockbuster potential. However, there are concerns about long-term sales growth since Humira generics have entered the U.S. market.
Increasing competition from newer therapies is hurting Imbruvica’s sales. Slowing consumer demand due to economic pressure is hurting the aesthetics franchise’s sales. Nonetheless, though revenues are expected to decline in 2023, AbbVie expects to return to robust sales growth in 2025.
(You can read the full research report on AbbVie here >>>)
Honeywell shares have outperformed the Zacks Diversified Operations industry over the past year (+14.8% vs. +12.4%). The company is benefitting from the recovery in commercial flight hours, strength in advanced materials and UOP businesses augur well for Honeywell’s growth. Solid operational execution, pricing actions and cost-control measures continue to drive the company’s top line.
The company’s bullish forecast for 2023 holds promise. Efforts to handsomely reward shareholders with dividends and share buybacks hold promise. HON’s deal to acquire Compressor Controls raises optimism in the stock.
However, supply-chain disruptions remain a concern for the company. Weakness in the Safety and Productivity Solutions unit due to lower warehouse, and workflow and productivity solutions volumes is worrisome. Raw material cost inflation and adverse foreign currency movements are other headwinds.
(You can read the full research report on Honeywell here >>>)
Other noteworthy reports we are featuring today include Salesforce, Inc. (CRM), The Goldman Sachs Group, Inc. (GS) and CVS Health Corporation (CVS).
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
PepsiCo's (PEP) Business Investments to Bolster Performance
AbbVie's (ABBV) New Drugs to Make Up for Lost Humira Sales
Aerospace Unit Aids Honeywell (HON) Amid Supply Chain Woes
Featured Reports
Salesforce (CRM) Rides on Partnership Wins & Acquisitions
Per the Zacks analyst, Salesforce's expanding partner ecosystem is contributing to business wins and boosting its presence globally. Also, strategic buyouts like Slack and Tableau are positive.
Organic Growth Aids Goldman Sachs (GS), Cost Woes Prevail
Per Zacks analyst, business diversification along with sound capital position are likely to aid Goldman Sachs' (GS) growth. However, rising costs and legal hassles remain as headwinds.
CVS Health (CVS) Pharmacy Arm, Digital Capabilities Expand
The Zacks analyst is upbeat about CVS Health's robust growth in pharmacy benefit and retail arms. The company's digital health services like testing and omni channel are expanding.
Norfolk Southern's (NSC) Dividends Support, Fuel Costs Hurt
The Zacks analyst welcomes Norfolk Southern's efforts to add shareholder value. However, high operating expenses, mainly due to escalated fuel costs, are worrisome.
Suncor (SU) to Benefit from Syncrude and Fort Hills Projects
Zacks analyst thinks strong Syncrude & Fort Hills projects drive future volumes & cash flows, but pipeline construction struggles in Canada hinder oil prices, forcing them to sell at discounted rates
Digital Transformation Driving Demand For CDW's Products
Per the Zacks analyst, CDW Corporation's product and solutions portfolio is gaining from ongoing digital transformation. High debt load and stiff competition remain concerns.
Rising Visitors Aid Hawaiian Electric (HE), COVID Issues Hit
Per the Zacks analyst, rising visitor arrivals in Hawaii driven by recovering economy have been boosting Hawaiian Electric. Yet COVID-19 induced supply chain disruption might hurt the stock
New Upgrades
Martin Marietta (MLM) Benefits From Solid Pricing Actions
Per the Zacks analyst, solid pricing actions and near-term product demand backed by healthy customer backlogs across its coast-to-coast footprint are benefitting Martin Marietta.
Host Hotels (HST) to Ride on Lodging Industry Recovery
Per the Zacks analyst, Host Hotels is poised to benefit from rebound in the lodging industry driven by continued strength in leisure demand and improving business transient and group demand.
Solid Demand, New Products to Aid Lincoln Electric (LECO)
Per the Zacks analyst, continued acceleration in Lincoln Electric's end markets as well as its ongoing investments in developing innovative new products and acquisitions will drive growth
New Downgrades
Repligen (RGEN) Faces Declining Demand For COVID-19 Products
Per the Zacks Analyst, Repligen's revenues is being negatively impacted by the declining demand for COVID-19 products. Competition in the bioprocessing market is also a concern.
Inflation & Adverse Product Mix Hurt Dollar Tree (DLTR)
Per the Zacks analyst, Dollar Tree has been witnessing adverse product mix due to demand shift toward low-margin consumable goods. Inflation is likely to ail margins and bottom line in the near term.
Lincoln National (LNC) Weak on High Costs, Poor Life Business
Per the Zacks analyst, a high benefits expense level can dampen the company's margins. Lower fee income and struggling Life business are a concern for Lincoln National.
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The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
Salesforce Inc. (CRM) : Free Stock Analysis Report
Honeywell International Inc. (HON) : Free Stock Analysis Report
PepsiCo, Inc. (PEP) : Free Stock Analysis Report
CVS Health Corporation (CVS) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
