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The Zacks Analyst Blog Highlights: Cisco, Medtronic, Novo Nordisk, Southern and TransDigm

Zacks Equity Research

For Immediate Release

Chicago, IL –August 19, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Cisco Systems CSCO, Medtronic MDT, Novo Nordisk NVO, The Southern Company SO and TransDigm TDG.

Here are highlights from Friday’s Analyst Blog:

Top Research Reports for Cisco, Medtronic and Novo Nordisk

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 Cisco Systems, Medtronic and Novo Nordisk. 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 >>>

Cisco’s shares have outperformed the Zacks Computer Networking industry (6.7% vs.5.3%) in the year to date period. The Zacks analyst thinks that weakness in service provider business in China remains a concern.

Cisco delivered stellar Q4 results driven by solid security business and strong contribution from Infrastructure Platforms and applications. However, the company provided cautious outlook. Further, stiff competition from Arista and Juniper in switching and routing verticals is likely to create pricing pressure and impact profitability.

Also, increasing investments on product enhancements are likely to limit margin expansion at least in the near-term. Nevertheless, order strength and improving traction of the subscription-based business model are tailwinds. Strengthening collaboration portfolio, which includes Webex Teams, bodes well.

(You can read the full research report on Cisco here >>>).

Shares of Medtronic have outperformed the Zacks Medical Products industry over the past six months, gaining 10.3% vs 5.8%. Medtronic exited fiscal 2019 on a promising note with better-than-expected fourth-quarter numbers.

The Zacks analyst believes that Medtronic’s major business groups contributed to solid top-line growth at CER. Within RTG, the launch of the Mazor X Stealth navigated robotic system is off to a strong start. Diabetes group, although registered a dull quarter this time, the company expects this business to reaccelerate in the first quarter and be accretive to total company growth in fiscal 2020.

Within CVG, despite ongoing challenges, multiple product lines showed exceptional strength in the quarter. The 2020 guidance also looks promising. On the flips side, the declining CRHF revenue raises concern for Medtronic. Escalating costs persistently put pressure on gross margin.

(You can read the full research report on Medtronic here >>>).

Novo Nordisk’s shares have gained 8.4% in the last three months, outperforming the Zacks Biotech industry, which has lost -2.4% over the same period. Novo Nordisk beat both earnings and sales estimates in the second quarter of 2019. Ozempic, the company’s once-weekly GLP-1, continues to gain market share.

From a regulatory perspective, the company achieved important milestones with the filing of oral semaglutide both in the United States and the EU. With the initiation of four major late-stage clinical trials, the company continues to investigate the clinical benefits of semaglutide across multiple indications. The company also has a strong foothold in diabetes market. Shares of the company outperformed the industry year to date.

(You can read the full research report on Novo Nordisk here >>>).

Other noteworthy reports we are featuring today include The Southern Company and TransDigm.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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Southern Company (The) (SO) : Free Stock Analysis Report
 
Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
 
Novo Nordisk A/S (NVO) : Free Stock Analysis Report
 
Transdigm Group Incorporated (TDG) : Free Stock Analysis Report
 
Medtronic PLC (MDT) : Free Stock Analysis Report
 
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