Top Stock Reports for Alphabet, Sanofi & Mondelez International
Thursday, October 5, 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), Sanofi (SNY) and Mondelez International, Inc. (MDLZ). 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 Alphabet have outperformed the Zacks Internet - Services industry over the year-to-date period (+53.3% vs. +50.9%). The company’s strong cloud division is aiding substantial revenue growth. Moreover, expanding data centers will continue to bolster its presence in the cloud space.
Further, major updates in its search segment are enhancing the search results. 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 its wearables category remains a tailwind. Alphabet’s expanding presence in the autonomous driving space is contributing well.
Its growing efforts to gain a foothold in the healthcare industry can be considered 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 >>>)
Sanofi’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (+14.2% vs. +4.9%). The company beat Q2 estimates for earnings but missed the same for sales. Sanofi’s Specialty Care unit is on strong footing, particularly with the outstanding growth trajectory of Dupixent, which has become the key top-line driver for Sanofi.
Dupixent enjoys strong demand trends across all approved indications and geographies. Sanofi possesses a leading vaccine portfolio, which has become the primary top-line driver. Its R&D pipeline is strong. Several data readouts are expected in 2023.
The company has also launched several new drugs in the past couple of years and is expanding its pipeline through M&A deals. However, headwinds include the weak performance of diabetes drugs and recent negative pipeline developments.
(You can read the full research report on Sanofi here >>>)
Shares of Mondelez International have outperformed the Zacks Food - Miscellaneous industry over the year-to-date period (+4.8% vs. -14.9%). The company has been benefiting from strength in emerging markets and its core chocolate and biscuit categories. It has also been focused on strengthening areas with higher growth potential via prudent acquisitions (like Clif Bar and Ricolino) and divestitures.
These upsides, together with pricing actions, fueled second-quarter 2023 results, wherein the top and bottom lines increased year over year and surpassed the Zacks Consensus Estimate. Backed by the stellar year-to-date performance, management raised its 2023 organic net revenue and earnings guidance.
However, Mondelez has been battling challenges related to global cost inflation. The company continues to anticipate double-digit inflation in 2023 stemming from continued elevated costs of packaging, ingredients and labor.
(You can read the full research report on Mondelez International here >>>)
Other noteworthy reports we are featuring today include Uber Technologies, Inc. (UBER), Airbnb, Inc. (ABNB) and American Tower Corp. (AMT).
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
Solid Momentum in Cloud Business Benefits Alphabet (GOOGL)
Dupixent to Remain Sanofi's (SNY) Key Top-Line Driver
Mondelez (MDLZ) Gains on Solid Chocolate & Biscuit Categories
Featured Reports
Airbnb (ABNB) Banks on Strong Nights & Experiences Bookings
Per the Zacks analyst, strengthening gross nights booked in high-density urban areas, and recovery in both long-distance and cross-border travel are benefiting Airbnb's Nights & Experience bookings.
Solid Tower Demand Amid 5G Hype to Aid American Tower (AMT)
Per the Zacks Analyst, American Tower is well-poised to benefit from the solid demand for its wireless communication assets as U.S carriers ramp up their investments in 4G and 5G networks.
Eni (E) to Gain From Gas Find at Indonesia's Kutei Basin
Per the Zacks analyst, Eni's latest gas discovery in Indonesia's Kutei Basin, with 5 Tcf of gas and 400 million barrels of condensate, supports its shift toward a gas and LNG-focused portfolio.
Investments & Higher Fee-Based Earnings Aid ONEOK (OKE)
Per the Zacks analyst, ONEOK is set to benefit from fee-based earnings and midstream assets located in productive regions. Investments made to expand pipelines will further drive its performance.
Markel (MKL) Benefits From Strategic Buyouts, Organic Growth
Per the Zacks analyst, strategic buyouts have aided Markel to achieve growth in insurance operations and expand reinsurance product offerings. Organic initiatives also strengthen its portfolio.
Ericsson (ERIC) Poised to Benefit from Accelerated 5G Rollout
Per the Zacks analyst, rapid 5G expansion in India and multiple deal wins in South East Asia will likely boost Ericsson's margins. Strong emphasis on developing new 5G use cases is a tailwind.
Product Innovation Aids Acuity Brands (AYI), Macro Woes Ail
Per the Zacks analyst, Acuity Brands benefits from product innovation and in-organic moves. However, high cost and volatile business environment are concerns.
New Upgrades
Uber Rides on Strength Across Delivery & Mobility Business
The Zacks analyst likes Uber's efforts to expand its Delivery operations in response to the surge in business. Continued recovery in the Mobility business is also encouraging.
Strong Demand for Live Events to Aid Live Nation (LYV)
Per the Zacks analyst, pent-up demand for live events, robust ticket sales and the sponsorship and advertising business likely to aid Live Nation performance.
FDA Nod to Sarepta's (SRPT) DMD Gene Therapy Fuels Growth
The Zacks Analyst is encouraged by the recent FDA approval to Sarepta's Elevidys, the first DMD gene therapy. Based on this approval, it has started exploring opportunities in the gene therapy space
New Downgrades
Increasing Expenses and Labor Competition Hurt ABM
Per the Zacks analyst, ABM's operating expenses have grown yearly due to labor shortages, rising wages, and fierce labor market competition, potentially causing higher costs .
Soft Demand and Destocking to Hurt Celanese (CE)
Per the Zacks analyst, Celanese is facing challenges from weak demand, destocking and a competitive landscape, which will continue to weigh on its volumes, pricing and margins.
Overdependence on SET Platform Continues to Ail Masimo (MASI)
The Zacks analyst is worried about Masimo's overdependence on its SET platform to derive the majority of its revenues. Its operation in a tough competitive space is an added issue.
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Sanofi (SNY) : Free Stock Analysis Report
American Tower Corporation (AMT) : Free Stock Analysis Report
Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Uber Technologies, Inc. (UBER) : Free Stock Analysis Report
Airbnb, Inc. (ABNB) : Free Stock Analysis Report
