Yahoo Finance Top Research Reports for AbbVie, NextEra Energy & ConocoPhillips
Monday, March 13, 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 AbbVie Inc. (ABBV), NextEra Energy, Inc. (NEE) and ConocoPhillips (COP). 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 AbbVie have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-1.6% vs. +3.3%). The company is facing concerns about long-term sales growth as Humira generics have entered the U.S. market. Increasing competition from newer therapies is hurting Imbruvica’s sales.
Slowing consumer demand due to economic pressures 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.
However, AbbVie has several new drugs in its portfolio, which 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 approval in new indications. It has several early/mid-stage candidates that have blockbuster potential.
(You can read the full research report on AbbVie here >>>)
Shares of NextEra Energy have declined -7.9% over the past year against the Zacks Utility - Electric Power industry’s decline of -9.2%. The company’s nature of its business is subject to complex federal, state and other regulations. Risk in operating nuclear units, unfavorable weather conditions and an increase in supply costs adversely impact earnings.
Nevertheless, NextEra Energy continues to expand its operations through the efficient execution of organic projects and strategic acquisitions. The company currently has many renewable projects in its backlog and their completion will ensure reduced emissions.
The merger of Gulf Power and FPL strengthens NextEra’s position in Florida. FPL’s customer base is expanding as Florida’s economy improves and continues to boost demand for its services. NextEra has ample liquidity to meet its near-term debt obligations and efficient debt management acting as tailwinds.
(You can read the full research report on NextEra Energy here >>>)
Shares of ConocoPhillips have gained +7.9% over the past year against the Zacks Oil and Gas - Integrated - United States industry’s gain of +10.4%. The company holds a bulk of acres in the unconventional plays of Eagle Ford shale, Permian Basin and Bakken shale. Significant opportunities are there for the company in the Bakken Shale, where it owns about 750 undrilled locations that could provide access to huge reserves.
ConocoPhillips projects its 2023 production at 1.76-1.8 MMBoe/d, suggesting an increase from 1.74 MMBoe/d last year. COP’s balance sheet is significantly less leveraged than the industry it belongs to. Additionally, the company announced its 2023 planned return of capital to shareholders of $11 billion.
However, ConocoPhillips is highly exposed to oil price fluctuations, which makes things challenging for the company. Also, the company been generating lower dividend yield than the industry for the past few years. As such, the stock warrants a cautious stance.
(You can read the full research report on ConocoPhillips here >>>)
Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), Canadian Pacific Railway Limited (CP) and Intercontinental Exchange, Inc. (ICE).
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
AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth
Steady Investment & Renewable Focus Aid NextEra Energy (NEE)
ConocoPhillips (COP) Banks On Oil-Rich Bakken Shale Assets
Featured Reports
Abbott's (ABT) Core Diagnostics Grows amid Forex Woes
The Zacks analyst is impressed with Abbott's worldwide Diagnostics sales growth in the fourth quarter led by rapid diagnostics. Yet, adverse currency movement continues to pose concerns.
Canadian Pacific's (CP) Dividends Support, Fuel Costs Hurt
The Zacks analyst welcomes Canadian Pacific's efforts to add shareholder value. However, high operating expenses, mainly due to escalated fuel costs, are worrisome.
Intercontinental (ICE) Banks on Buyouts Amid High Costs
Per the Zacks analyst, Intercontinental Exchange is set to grow on a number of acquisitions and cost synergies. However, rising expenses weigh on margins.
High Brand-Value, Strategic Buyouts Aid Public Storage (PSA)
Per the Zacks Analyst, Public Storage to benefit from its high brand value, favorable self-storage industry fundamentals and strategic buyouts. However, rise in vacating volumes might hurt occupancy.
McKesson's (MCK) Deals Buoys Optimism Amid Sluggish Market
Per the Zacks analyst, McKesson has been pursuing deals and acquisitions to drive growth. It is a dominant player in the Distribution market which is facing weaker generic pharmaceutical pricing trend
Momentum in Cash App & Square Ecosystems Benefits Block (SQ)
Per the Zacks analyst, Block is benefiting from strong Cash App engagement and its growing active customer base. Further, the company's growing momentum across Square Ecosystem remains a positive.
KDG Buyout Aids Genuine Parts' (GPC) Sales, High Capex a Woe
Per the Zacks analyst, Kaman Distribution Group buyout will aid Genuine Parts' sales while high operating costs, capex and unfavorable forex translation could trim down margins.
New Upgrades
Everest Re (RE) to Grow on Better Pricing, Solid Retention
Per the Zacks analyst, Everest Reis poised to grow on disciplined cycle management, new business opportunities, continued double-digit rate increases and strong renewal retention on existing business.
Business Model & Pro-Investor Steps Boost Interpublic (IPG)
The Zacks Analyst is optimistic about Interpublic's digital capabilities, diversified business model and geographic reach. Moreover, its shareholder-friendly steps are tailwinds.
Theravance (TBPH) Progress Towards Its Pipelines Is Encouraging
While Theravance's collaboration revenues of Yupelri is driving its topline, Zacks Analysts is encouraged by its progress in development of pipeline candidate, ampreloxetine.
New Downgrades
Altice (ATUS) Plagued by Waning Demand, High Programing Costs
Per the Zacks analyst, Altice is likely to be plagued by escalating programing costs per customer due to an increase in contractual rates and waning demand owing to cheaper available alternatives.
United Natural (UNFI) Hurt by High Costs, Supply-Chain Woes
Per the Zacks analyst, United Natural is battling cost inflation and supply-chain woes. Management cut fiscal 2023 earnings view as it expects similar profitability trends through the rest of the year
Capri Holdings' (CPRI) Grapples With Inflation & Other Woes
Per the Zacks analyst, Capri Holdings' performance has been hurt by inflationary headwinds, shift in consumer demand patterns, and weakness in wholesale channel. The company cuts fiscal 2023 view.
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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
Abbott Laboratories (ABT) : Free Stock Analysis Report
Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report
ConocoPhillips (COP) : Free Stock Analysis Report
Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
