Top Stock Reports for Alphabet, Roche & Honeywell International
Monday, August 28, 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 Alphabet Inc. (GOOGL), Roche Holding AG (RHHBY) and Honeywell International Inc. (HON). 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 >>>
Alphabet shares have outperformed the Zacks Tech sector (+48% vs. +35%) as well as the S&P 500 index (+48% vs. +15.5%) in the year-to-date period on the back of the company's central role in the evolving artificial intelligence (AI) developments. Adding to the AI hopes is the company’s strong cloud division and improving outlook for the digital ad market.
Also, strong focus on innovation of AI techniques and the home automation space should aid business growth in the long term. Further, its deepening focus on wearables category remains a tailwind. Alphabet’s expanding presence in the autonomous driving space is contributing well. Its growing efforts to gain foothold in the healthcare industry are other positives.
However, sluggishness in the company’s Network advertisement business remains a headwind. Additionally, its growing litigation issues and increasing expenses are concerns.
(You can read the full research report on Alphabet here >>>)
Shares of Roche have gained +4.3% over the past six months against the Zacks Large Cap Pharmaceuticals industry’s gain of +18.8%. The company’s new drugs, namely Ocrevus, Hemlibra, Evrysdi, Phesgo, Polivy and Tecentriq, recorded growth and should maintain momentum. The uptake of the new eye drug, Vabysmo has been outstanding. The company’s efforts to develop new drugs to combat the decline in legacy drugs are drugs are encouraging.
However, Roche’s performance in the first half was average as COVID-19-product-related sales declined significantly impacting the top line, even though the diagnostics base business and newer drugs maintained their growth.
Also, sales are likely to be affected further by the expected nosedive in sales of COVID-19 products of nearly CHF 5 billion. Competition from biosimilars for established cancer medicines like Avastin, MabThera/Rituxan and Herceptin also hurt sales.
(You can read the full research report on Roche here >>>)
Shares of Honeywell International have underperformed the Zacks Diversified Operations industry over the past year (-1.1% vs. +3.3%). The company is witnessing supply-chain disruptions which remain a concern. Weakness in the Safety and Productivity Solutions unit due to lower warehouse, and workflow and productivity solutions volumes is worrisome. Raw material cost inflation and adverse foreign currency movements are other concerns.
Nevertheless, Recovery in commercial flight hours, strength in process solutions and UOP businesses augur well for Honeywell’s growth. Solid operational execution, pricing actions and cost-control measures continue to drive the company’s top line. HON’s bullish forecast for 2023 holds promise.
Handsome rewards to shareholders add to the stock’s appeal. HON’s recent acquisition of Compressor Controls enhances its expertise in industrial control, automation and process solutions.
(You can read the full research report on Honeywell International here >>>)
Other noteworthy reports we are featuring today include Amgen Inc. (AMGN), International Business Machines Corporation (IBM) and The Goldman Sachs Group, Inc. (GS).
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
Alphabet (GOOGL) Benefits From Cloud & Search Initiatives
New Drugs Boost Roche (RHHBY), COVID-19 Treatments Decline
Aerospace Aids Honeywell (HON), Safety and Productivity Ails
Featured Reports
Amgen (AMGN) Key Drugs to Drive Sales Amid Biosimilar Woes
The Zacks expects strong sales growth of Amgen's products like Tezspire, Evenity, Repatha, Prolia and Tavneos to be offset by lower revenues from oncology biosimilars & legacy products such as Enbrel.
IBM Remains Poised to Benefit from a Holistic Growth Model
Per the Zacks analyst, IBM is likely to benefit from healthy hybrid cloud adoption, solid demand trends and the strategic buyout of Apptio, which will likely bolster its IT automation capabilities.
Organic Growth to Support Goldman (GS), High Expenses Ail
Per the Zacks analyst, business diversification efforts offer earnings stability, which will aid Goldman's top-line growth. Yet, mounting expenses and higher dependence on overseas revenues are woes.
Pre-Salt Reserves Help Petrobras (PBR), Debt Mountain Hurts
The Zacks analyst believes Petrobras' stakes in Brazil's lucrative pre-salt oil reservoirs should improve its earnings outlook, but is concerned about the company's massive $42.8 billion debt load.
OrangeData Acquisition Aids Fiserv (FI), Integration Risk Ails
Per the Zacks Analyst, acquisition of OrangeData, a QR-based payment provider is bolstering Fiserv's instant transaction abilities in the Acceptance segment. Integration risks may affect company.
Investments, Cost-Effective Power Aid PNM Resources (PNM)
Per the Zacks analyst, PNM Resources' investment of $2.8 billion through 2025, will increase reliability of its operations. Its initiative to provide affordable power will drive its performance.
Steady Subscription & Automotive Ad Revenues Aid TEGNA (TGNA)
Per the Zacks analyst, TEGNA is benefiting from continued growth in subscription and automotive advertising revenues amid declining subscriber growth.
New Upgrades
Trane Technologies (TT) Aided By Transformation Initiatives
The Zacks analyst is positive about Trane Technologies' focus on improving its operating system and innovation through transformation initiatives. The company targets $300 million in savings by 2023.
Investments, Cost-Effective Power Aid PNM Resources (PNM)
Per the Zacks analyst, PNM Resources' investment of $2.8 billion through 2025, will increase reliability of its operations. Its initiative to provide affordable power will drive its performance.
Guess? to Gain From Solid Retail Businesses in Europe & Asia
Per the Zacks analyst, the impressive performance of Guess?' retail businesses in Europe and Asia, fueled by robust demand for its products, will continue to lend momentum to the company.
New Downgrades
Weakness in Communication Market Ails Analog Devices (ADI)
Per the Zacks analyst, Analog Devices is suffering sluggishness in communication end market due to ongoing inventory corrections.
Elevated Expenses, High Leverage Concern Willis Towers (WTW)
Per the Zacks analyst, Willis Towers' higher salaries and benefits, operating costs induces escalating expenses that weigh on margin expansion. High leverage induces rise in interest expense.
High Costs & Weather Woes Hurt Pool Corp (POOL) Prospects
Per the Zacks analyst, Pool Corp is affected by inflationary costs, weather-related constraints and high interest rates. Also, a fall in new pool construction activity is a concern.
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The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
Roche Holding AG (RHHBY) : Free Stock Analysis Report
International Business Machines Corporation (IBM) : Free Stock Analysis Report
Honeywell International Inc. (HON) : Free Stock Analysis Report
Amgen Inc. (AMGN) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
