Yahoo Finance Top Stock Reports for Microsoft, Novo Nordisk & Booking Holdings
Monday, September 11, 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 Microsoft Corporation (MSFT), Novo Nordisk A/S (NVO) and Booking Holdings Inc. (BKNG). 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 Microsoft have gained +40.3% over the year-to-date period against the Zacks Computer - Software industry’s gain of +43.3%. The company’s fourth-quarter results benefited from improvement in Intelligent Cloud and Productivity and Business Processes, offset in part by a decline in More Personal Computing.
Strong adoption of Office 365 Commercial solutions drove Productivity and Business Processes revenues. Continued momentum in the small and medium businesses and frontline worker offerings, as well as gain in revenue per user drove top-line growth.
However, More Personal Computing revenues decreased due to weak Windows and Devices businesses. Steady performance in Talent Solutions aided LinkedIn revenues. However, decline gaming revenues and sluggishness in Azure business have been headwinds. Increasing spend on Azure enhancements amid stiff competition in the cloud space remains a concern.
(You can read the full research report on Microsoft here >>>)
Novo Nordisk shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (+45.7% vs. +10.4%). The company has one of the broadest diabetes portfolios in the industry. Ozempic and Rybelsus have been performing well in the market. Saxenda and Wegovy sales have been gaining momentum.
Label expansions of diabetes and obesity care drugs will likely further boost sales. Novo Nordisk raised its 2023 view along with its second-quarter results, expecting better sales of its GLP-1 diabetes products. Its diversifying efforts to develop new treatments are encouraging.
However, competition is getting stiffer 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 Booking Holdings have outperformed the Zacks Internet - Commerce industry over the year-to-date period (+56.0% vs. +42.1%). The company is benefiting from a substantial improvement in booking trends driven by growing demand for travel. This, in, turn, is helping lower cancellation rates.
Booking Holdings expects room night growth to increase at a low double-digit rate on a year-on-year basis in the third quarter. Solid growth in domestic bookings is driving growth. The company is experiencing solid momentum in international regions, which is a positive. Strong growth in rental cars, airline ticket units and booked room nights is another positive.
Solid momentum across the agency, merchant, advertising and other businesses is a tailwind. Further, strengthening alternative accommodation business and flight capabilities are major positives. However, intensifying competition is a headwind.
(You can read the full research report on Booking Holdings here >>>)
Other noteworthy reports we are featuring today include Sony Group Corporation (SONY), Anheuser-Busch InBev SA/NV (BUD) and EOG Resources, Inc. (EOG).
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
Adoption of Cloud & Office 365 Strength Aid Microsoft (MSFT)
Ozempic & Wegovy Fuel Novo Nordisk (NVO) Amid Competition
Solid Gross Bookings Momentum Aids Booking Holdings (BKNG)
Featured Reports
Strength in Games & Network, Music Segments Benefit SONY
Per the Zacks analyst, Sony is gaining from strong performance of its Games & Network and Music segments. Weak macro conditions and rising costs are concerns.
Beyond Beer Expansion to Drive AB InBev's (BUD) Top Line
Per the Zacks analyst, AB InBev is focused on expanding its Beyond Beer portfolio, which has been aiding the top line. Its Beyond Beer portfolio contributed more than $385 million to revenues in Q2.
EOG Resources (EOG) Banks on Oil-Rich Permian Acreage
EOG Resources has significant acreages in oil shale plays like Permian and Eagle Ford. However, rising exploration and dry hole expenses concern the Zacks analyst.
Investments Aid Consolidated Edison (ED), Weak Solvency Woe
Per the Zacks analyst, investments for infrastructure development and maintain reliability of operations aid Consolidated Edison's long-term growth. Yet, its weak solvency position remains a concern.
Cardinal Health's (CAH) Diverse Products Gives Competitive Edge
Per the Zacks analyst, Cardinal Health's diversified portfolio represents long-term opportunity. Its products provide the company with a competitive edge in the niche space with cutthroat competition.
Genpact (G) Gains From AI Product Portfolio Amid Talent Costs
Per the Zacks analyst, Genpact has growth potential in Artificial Intelligence with a strong product portfolio and the benefits of acquisitions. A competitive talent market remains a concern.
Growing Top Line, Solid Capital Position Aid RLI Corp. (RLI)
Per the Zacks analyst, its rising revenues driven by higher premiums and net investment income have led to significant growth. Moreover, robust capital position continues to be a key catalyst.
New Upgrades
Solid Demand & Bookings Boost Marriott's (MAR) Prospects
Per the Zacks analyst, Marriott is poised to benefit from robust leisure demand and solid global booking trends. Also emphasis on expansion initiatives and the Marriott Bonvoy program bode well.
Strategic Acquisitions & Digital Capabilities Aid Penske (PAG)
Per the Zacks analyst, Penske is riding high on strategic acquisitions. Providing a comprehensive and seamless online shopping experience is boosting the firm's top-line growth.
Sonos (SONO) Performance Gains From Solid Demand for Speakers
Per the Zacks analyst, Sonos' performance is gaining from the robust uptake of Era 100 and Era 300 speakers. Also, frequent product launch is a tailwind.
New Downgrades
Rising Operating Costs and Forex Woes Hurt MRC Global (MRC)
Per the Zacks analyst, MRC Global's operational efficiencies are being dampened by a steep rise in operating costs, which is hurting the company's bottom line. Forex woes are an added concern.
Worsening Asset Quality, Higher Expenses Hurt Truist (TFC)
Per the Zacks analyst, mounting costs, mainly on investments in technology upgrades and inflationary pressure, will hurt Truist's bottom line. Poor credit quality on the worsening backdrop is a woe.
Delays & Lower Spending From Customers Hurt MasTec (MTZ)
Per the Zacks analyst, MasTec has been grappling with supply chain challenges and permitting delays. Also, reduced business from select customers who are scaling back their spending is a risk.
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Microsoft Corporation (MSFT) : Free Stock Analysis Report
Novo Nordisk A/S (NVO) : Free Stock Analysis Report
EOG Resources, Inc. (EOG) : Free Stock Analysis Report
Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report
Booking Holdings Inc. (BKNG) : Free Stock Analysis Report
Sony Corporation (SONY) : Free Stock Analysis Report
