Top Stock Reports for Procter & Gamble, Novartis & Mondelez International
Monday, November 20, 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 The Procter & Gamble Co. (PG), Novartis AG (NVS) 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 >>>
Procter & Gamble’s shares have outperformed the Zacks Soap and Cleaning Materials industry over the past year (+7.3% vs. +5.3%). The company has been gaining from robust pricing and a favorable mix, along with strength across segments.
It has been focused on productivity and cost-saving plans to boost margins. This led to the top and bottom lines beating the consensus mark for the fifth consecutive quarter in the first quarter of fiscal 2024. Consequently, PG has provided an optimistic fiscal 2024 view.
However, the company has been witnessing supply-chain issues, higher SG&A costs, higher transportation costs and rising inflation. Its significant international presence exposes it to foreign currency risks, which acts as a headwind.
(You can read the full research report on Procter & Gamble here >>>)
Shares of Novartis have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+18.7% vs. +12.0%). The company’s third-quarter results were better than expected as drugs like Entresto, Kesimpta, Zolgensma, Kisqali and Leqvio continued to fuel growth and offset the impact of generic competition. Pluvicto and Scemblix have witnessed solid launches and Leqvio’s launch continues to progress.
With the separation of Sandoz, Novartis has become a pure-play pharmaceutical company. The acquisition of Chinook Therapeutics has strengthened its renal pipeline. However, generic competition for key drugs like Gilenya and pipeline setbacks remain concerns.
(You can read the full research report on Novartis here >>>)
Shares of Mondelez International have outperformed the Zacks Food - Miscellaneous industry over the past year (+9.7% vs. -11.3%). The company, which has been seeing solid organic revenues, 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 buyouts (like Clif Bar) and divestitures. These upsides, together with pricing actions, fueled third-quarter 2023 results, wherein 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. Volatile currency movements and competitive pressure also pose concerns.
Other noteworthy reports we are featuring today include Elevance Health, Inc. (ELV), Eaton Corporation plc (ETN) and Vertex Pharmaceuticals Inc. (VRTX).
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
Procter & Gamble (PG) Gains from Cost Savings Initiatives
Entresto, New Drugs Fuel Novartis (NVS) Amid Competition
Mondelez (MDLZ) Gains on Solid Chocolate & Biscuit Categories
Featured Reports
Elevance's (ELV) Strategic Buyouts & Product Expansion Aid
Per the Zacks analyst, acquisitions, partnerships and product expansions are helping Elevance Health boost its portfolio, leading to steady revenue growth. Yet, rising costs are affecting profits.
New Product Development, Wide Market Reach Aid Eaton (ETN)
Per the Zacks analyst Eaton's operations in 175 countries across the world and development of new products through ongoing R&D investments will continue to drive demand and boost profitability.
Vertex (VRTX) Enjoys a Strong Non-Cystic Fibrosis Pipeline
The Zacks analyst says that though Vertex (VRTX) enjoys strong position in the cystic fibrosis (CF) market, it has a broad non-CF pipeline. Multiple clinical milestones are expected in the near term.
Strong Portfolio Adoption Aids Carrier's (CARR) Prospects
Per the Zacks analyst, Carrier is benefiting from strong adoption of intelligent climate and energy solutions. Its embedding AI and generative AI capabilities into Abound is benefiting growth.
Old Dominion's (ODFL) Dividends Aid, Low Revenues Hurt
The Zacks analyst welcomes Old Dominion's efforts to add shareholder value. However, low revenues, mainly due to freight demand weakness, are worrisome.
Otis Worldwide (OTIS) to Gain From Innovations, Costs High
Per the Zacks analyst, Otis Worldwide is poised to gain from diversified portfolio of innovative space-saving and energy-efficient solutions. However, rising input costs raise concern.
Procedure Volume Rebound Aids STERIS (STE), Macro Woes Stay
The Zacks Analyst is impressed with the ongoing momentum in STERIS' Healthcare business, backed by procedure volume recovery in U.S., price and market share gains. Yet, macro issues are a concern.
New Upgrades
Personal & Commercial business lines Aid Progressive (PGR)
Per the Zacks analyst, Progressive is set to grow on solid Agency, Direct and Property businesses of Personal Auto and Commercial Auto segments, which will drive improvement in net premiums.
Copart (CPRT) to Gain From High Salvage Auction Volumes
Per the Zacks analyst, Copart's salvage auction volumes are likely to remain elevated amid an increase in vehicle miles traveled and a higher collision frequency, boosting its top-line growth.
Flex's Performance Benefits From Continued Demand Momentum
The Zacks analyst is optimistic about strong demand for Flex's solutions in the automotive and industrial verticals. The digital healthcare segment is expected to gain from several program ramps.
New Downgrades
Acquisition of Uni-Select & Low Metal Price to Ail LKQ
The Zacks analyst is worried about LKQ's Uni-Select acquisition, which is likely to face challenges in the initial months. A decrease in metal pricing will adversely impact its profitability.
Weakness in Cybersecurity Business to Hurt Blackberry (BB)
Per the Zacks analyst, Blackberry performance is being affected by softness in the Cybersecurity unit due to prolonged sales cycles. Also, stiff competition and weak macro conditions are concerns.
Subdued Capital Markets, Costs Hurt LPL Financial (LPLA)
Per the Zacks analyst, rising costs due to an increase in compensation costs will hurt LPL Financial's profits. Ambiguity over the performance of the capital markets may hamper commission revenues.
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Novartis AG (NVS) : Free Stock Analysis Report
Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
Eaton Corporation, PLC (ETN) : Free Stock Analysis Report
Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report
Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report
Elevance Health, Inc. (ELV) : Free Stock Analysis Report
