Thursday, December 22, 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), AstraZeneca PLC (AZN) and Accenture plc (ACN). 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 Novo Nordisk have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+20.5% vs. +13.7%). The company 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 further in the days ahead. Promising diabetes drug, Ozempic is off to a solid start since its launch and remains the growth engine for the company. The launch of Rybelsus also looks impressive.

However, lower realized prices in the United States, loss of exclusivity for products and stiff competition can affect sales. The supply challenges for Wegovy have hurt 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 >>>)

AstraZeneca shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+16.9% vs. +13.7%). The company’s key drugs, mainly cancer medicines, Lynparza, Tagrisso and Imfinzi should keep driving revenues. Its pipeline is strong with several phase III data readouts lined up.

AstraZeneca has also been engaged in external acquisitions and strategic collaborations to boost its pipeline while investing in geographic areas of high growth like emerging markets. Cost-cutting efforts should drive earnings. The Alexion buyout strengthens its immunology franchise, adding several drugs that are boosting its top line.

However, AstraZeneca’s diabetes franchise faces stiff competition while pricing pressure hurts sales in the respiratory unit. Sales are slowing down in its key market, China.

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

Shares of Accenture have modestly underperformed the Zacks Consulting Services industry over the past year (-33.4% vs. -27.6%), with the uncertain corporate spending outlook in a cloudy macroeconomic backdrop as the biggest headwind. The company’s pricing pressure due to significant competition from strong companies like Genpact, Cognizant and Infosys, remains a concern. Global presence exposes it to foreign currency exchange rate fluctuations. Buyout-related integration risks continues to remain a concern.

However, the company has been steadily gaining traction in its outsourcing and consulting businesses backed by high demand for services that can improve operating efficiencies and save costs. The company has been strategically enhancing its cloud and digital marketing suite through buyouts and partnerships.

The company’s strong operating cash flow has helped it reward its shareholders in the form of dividend payments and share repurchases, and pursue opportunities in areas that show true potential.

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

Other noteworthy reports we are featuring today include Chubb Limited (CB), Pioneer Natural Resources Company (PXD) and Roper Technologies, Inc. (ROP).

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>>>