Top Research Reports for Novo Nordisk, Amgen & ADP

Wednesday, November 16, 2022

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), Amgen Inc. (AMGN) and Automatic Data Processing, Inc. (ADP). 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 >>>

Novo Nordisk’s shares have gained +1.4% over the year-to-date basis against the Zacks Large-Cap Pharmaceuticals industry’s gain of +4.3%. The company’s promising diabetes drug, Ozempic, is off to a solid start since its launch. The drug remains the growth engine for the company.

The launch of Rybelsus also looks impressive. Novo Nordisk has one of the broadest diabetes portfolios in the industry. Drug sales have been gaining and maintaining momentum. Label expansion of the existing drugs is likely to boost sales.

However, lower realized prices in the United States, loss of exclusivity for products and stiff competition affect sales. Sales are also being negatively impacted by the COVID-19 pandemic. The supply challenges for Wegovy have hurts the stock. The patent expiry on some of the products in Novo Nordisk’s portfolio remains a woe.

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

Amgen’s shares have outperformed the Zacks Medical - Biomedical and Genetics industry over the past year (+37.8% vs. -23.5%). The company’s key drugs like Prolia, Repatha and Xgeva are driving sales. New drugs Lumakras and Tezspire, are off to an encouraging start.

The acquisition of ChemoCentryx, if successfully closed, will add a strategic new growth asset in Tavneos to Amgen’s portfolio. Amgen boasts a strong biosimilars portfolio with potential new products expected to drive long-term growth.

However, increased pricing headwinds and competitive pressure are hurting sales of many of Amgen’s legacy products including some biosimilars. The IRS tax litigation is an overhang on Amgen shares. Estimates have declined slightly ahead of Q3 results. Amgen has a positive record of earnings surprise in recent quarters.

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

Shares of Automatic Data Processing have outperformed the Zacks Outsourcing industry over the past year (+7.0% vs. -2.0%). The company continues to enjoy a dominant position in the human capital management market through strategic buyouts like Celergo, WorkMarket, Global Cash Card and The Marcus Buckingham Company.

It has a strong business model, high recurring revenues, good margins, robust client retention and low capital expenditure. Further, it continues to innovate, improve operations and invest in its ongoing transformation efforts.

However, ADP faces significant competition in each of its product lines. Failure to remain technologically updated might reduce the demand for its solutions and services. Rising expenses due to investment in transformation efforts remains a concern. High debt remains a concern.

(You can read the full research report on Automatic Data Processing here >>>)

Other noteworthy reports we are featuring today include Equinor ASA (EQNR), Duke Energy Corp. (DUK), and Illinois Tool Works Inc. (ITW).

Mark Vickery
Senior Editor

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

Novo Nordisk's (NVO) Diabetes Drugs Aid Growth Amid Rivalry

Amgen (AMGN) New Drugs Off to Good Start; Pipeline Strong

Solid Business Model Aids ADP, Escalating Expenses Affect

Featured Reports

Solid Investments Aid Duke Energy (DUK), Weak Solvency Woes
Per the Zacks analyst, Duke Energy's investment in infrastructure and expansion projects tend to boost its long-term growth prospects. However, its weak solvency position remains a bottleneck.

End-Market Strength Aids Illinois Tool (ITW) Amid Cost Woes
Per the Zacks analyst, strength across the industrial applications, construction, U.S. residential and commercial end-markets bode well. However, high raw material costs are concerning.

NXP Semiconductors (NXPI) Benefits From End-Market Momentum
Per the Zacks analyst, strengthening momentum across automotive, mobile, and industrial and IoT end markets is driving NXP Semiconductors' business growth.

Digital Transformation Driving Demand For CDW's Products
Per the Zacks analyst, CDW is gaining from solid product and solutions portfolio that enable remote working and operations continuity plan. High debt load and stiff competition remain concerns.

Solid Segmental Results Drive Markel (MKL), Cat Loss Ail
Per the Zacks analyst, Markel is set to grow on niche focus and effective management of insurance risk driving solid performance at Insurance and Reinsurance segments. Cat loss adding volatility ails.

News Corporation (NWSA) Q1 Results Hurt By Tough Environment
Per Zacks analyst, News Corporation's first-quarter results were hurt by a challenging macro backdrop including the supply-chain and inflationary pressure. Currency headwinds also hurt the performance

Owens Corning (OC) Rides on Solid Pricing Amid Inflation Woes
Per the Zacks analyst, Owens Corning aids from strong pricing action, structural improvements and strategic investments. Yet, inflationary pressure on material and transportation, and soft volume ail.

New Upgrades

Equinor (EQNR) to Benefit From Rising Clean Energy Demand
The Zacks analyst is impressed by Equinor's massive investments in renewable projects, comprising solar and wind energy. With this, the company can capitalize on the rising clean energy demand.

Zscaler (ZS) Benefits From Acquisitions & Product Refreshes
Per the Zacks analyst, Zscaler is benefiting from its strategic acquisitions like Smokescreen and Trustdome. Moreover, frequent product refreshes are helping it in gaining new customers.

New Products & Acquisitions Aid Blackbaud's (BLKB) Performance
Per the Zacks analyst, Blackbaud's performance is gaining from frequent product launches and increasing customer renewal rates. Synergies from recent acquisitions also bode well.

New Downgrades

Chip Crisis, Cost Inflation Ail Standard Motor Products (SMP)
Per the Zacks analyst, the ongoing chip shortage and supply-chain bottlenecks are hurting Standard Motor's prospects and its production volumes. Also, sky-high inflation of input costs is a concern.

Rising Net Outflows, Expenses Hurt Artisan Partners (APAM)
Per the Zacks analyst, a rise in net outflows will hurt Artisan Partners' assets under management growth. Also, rising costs due to technology investments might keep the bottom line under pressure.

Currency Headwinds Hurting DENTSPLY SIRONA's (XRAY) Topline
Per the Zack analyst, unfavorable currency movements have hurt topline growth for DENTSPLY SIRONA. The foreign exchange volatility is expected to present a major headwind in the coming quarters.

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Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report
 
Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report
 
Duke Energy Corporation (DUK) : Free Stock Analysis Report
 
Novo Nordisk AS (NVO) : Free Stock Analysis Report
 
Amgen Inc. (AMGN) : Free Stock Analysis Report
 
Equinor ASA (EQNR) : Free Stock Analysis Report
 
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