Yahoo Finance Top Stock Reports for Novo Nordisk, Home Depot & Walt Disney
Tuesday, June 27, 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), The Home Depot, Inc. (HD) and The Walt Disney Company (DIS). 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 (+40.6% vs. +8.9%). 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 and maintaining momentum.
Label expansion of the diabetes drugs is likely to further boost sales. Novo resolved the supply issues with Wegovy, which led to a sales increase in the first quarter of 2023, consequently raising its full-year guidance. The company’s diversifying efforts to develop new treatments are reassuring.
However, Pfizer’s successful study on its oral type II diabetes candidate, danuglipron, is alarming. If approved, Pfizer is likely to eat away from Novo Nordisk’s Diabetes care market share. Patent expiry and pricing pressure across the diabetes market also remain a woe.
(You can read the full research report on Novo Nordisk here >>>)
Home Depot shares have gained +17.0% over the past year against the Zacks Building Products - Retail industry’s gain of +24.2%. The company has been witnessing significant benefits from the execution of the “One Home Depot” investment plan, which focuses on expanding supply chain facilities, technology investments and enhancement to the digital experience.
The interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic for the past few quarters. The company remains on track with its strategic investments to build a Pro ecosystem.
However, shares of Home Depot lagged the industry year to date on dismal performance in first-quarter fiscal 2023. Results were impacted by a more broad-based pressure across the business, driven by softened demand versus expectations. A deflation in lumber prices and unfavorable weather have also hurt the results. HD also provided a conservative view for fiscal 2023.
(You can read the full research report on Home Depot here >>>)
Shares of Walt Disney have gained +5.4% over the past six months against the Zacks Media Conglomerates industry’s gain of +6.5%. The company is benefiting from growing popularity of Disney+ core, owing to a strong content portfolio and a cheaper bundle offering.
Strong line-up of movies that include The Little Mermaid; Indiana Jones and the Dial of Destiny; Haunted Mansion, Poor Things and The Creator bodes well for the Media and Entertainment Distribution segment. Revival in Parks, Experiences and Products businesses is encouraging.
Theme Park business is likely to gain from strong demand across both the domestic and international parks. However, Disney+’s profitability continues to be negatively impacted by higher programming and production costs across Disney+, ESPN+ and Hulu. Disney’s leveraged balance sheet remains a concern.
(You can read the full research report on Walt Disney here >>>)
Other noteworthy reports we are featuring today include AbbVie Inc. (ABBV), Intuit Inc. (INTU) and Automatic Data Processing, Inc. (ADP).
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 to Boost Novo Nordisk (NVO), Market Rivalry a Woe
Home Depot's (HD) Interconnected Strategy to Boost Sales
Disney+ Growth & Revival of Parks Business Aids Disney (DIS)
Featured Reports
AbbVie's (ABBV) New Drugs to Make Up for Lost Humira Sales
Per the Zacks Analyst, AbbVie has several new drugs in its portfolio, like Rinvoq and Skyrizi, which have the potential to drive its top line and make up for sales lost due to Humira generic erosion.
Intuit (INTU) Rides on Product Refresh, Higher Subscriptions
Per the Zacks analyst, Intuit is benefiting from frequent product refreshes, which help it to gain customers. Moreover, increase in subscriptions is driving stable revenue growth for the company.
Solid Business Model Aids ADP, Escalating Expenses Hurt
The Zacks Analyst is positive about ADP's business model that ensures high recurring revenues, good margins, robust client retention and low capital expenditure. Rising expenses remain a concern.
Technology, Loans Support ICICI Bank (IBN), High Costs Ail
Per the Zacks analyst, ICICI Bank's efforts to digitize operations, rising rates and steady loan and deposit growth will aid profitability. Yet, weak credit quality and higher costs are key headwinds.
Progressive (PGR) Gains on Premiums, Cat Loss Woes Linger
Per the Zacks analyst, Progressive is set to grow on solid Agency and Direct business, which will drive improvement in net premiums. However, exposure to catastrophe loss remains a headwind.
Solid Investments Aid PSEG (PEG) Growth, Weak Solvency Woes
Per the Zacks analyst, Public Service Enterprise Group's, also known as PSEG, consistent investments in infrastructure projects may aid its growth. Yet, its weak solvency position remains a bottleneck
Aspen (AZPN) To Benefit From Diversified Product Portfolio
Per the Zacks analyst, Aspen will benefit from increased demand across all business segment and frequent product launches. However, stiff competition is a headwind
New Upgrades
Strength in Energy Systems Segment Benefits EnerSys (ENS)
Per the Zacks analyst, EnerSys' Energy Systems segment is driven by robust broadband, data center and telecom businesses. The company's shareholder friendly measures are encouraging.
Dycom (DY) Rides on Solid Telecommunications Business Growth
Per the Zacks analyst, Dycom is befitting from increased demand for network bandwidth and mobile broadband. Also, new contracts and Engineering & Construction investments bode well.
Online Strength & GenNext Plan to Aid Aaron's (AAN) Top Line
Per the Zacks analyst, Aaron's has been gaining from cost-reduction initiatives, increased online traffic and strength in GenNext stores. This led to revenue growth of 21.5% in Q1.
New Downgrades
Callon (CPE) Likely to Get Hurt by Aggressive Capital Budget
The Zacks analyst believes that Callon's higher 2023 operational capital budget of $1,000 million can affect its profitability. Also, the company's debt-laden balance sheet is concerning.
Drop in M&A Activity Affects Revenues, Net Outflow Increases
Per the Zacks Analyst, slowdown in deal making activity will affect financial advisory revenues. Also, a rise in net outflows and unsustainable capital deployment activities are concerning.
Regulatory Requirements, Forex Woes Impairs Catalent (CTLT)
The Zacks analyst is worried about Catalent's operation in a highly regulated healthcare industry. Unfavorable currency movement is an added issue.
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
Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report
Novo Nordisk A/S (NVO) : Free Stock Analysis Report
The Home Depot, Inc. (HD) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
