Friday, February 25, 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 The Procter & Gamble Co. (PG), Chevron Corp. (CVX), and Novo Nordisk A/S (NVO). 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 Procter & Gamble have outperformed the Zacks Soap and Cleaning Materials industry over the past year (+22.9% vs. +11.3%). While the company has reported earnings surprises for the more than three years straight, revenues beat estimates for the seventh time in a row for second-quarter fiscal 2022.

The Zacks analyst believes that results were driven by improved productivity amid cost headwinds, along with the rising demand for cleaning products due to the resurgence of COVID-19 cases. Management lifted its fiscal 2022 view.
 

It witnessed SG&A expense leverage, owing to savings from overhead and marketing expenses, and cost leverage gains due to higher sales and real estate. However, unfavorable mix, commodity cost inflation, increase in freight costs, product and packaging investments and other impacts hurt margins. It expects higher commodity and freight costs to persist in fiscal 2022.
 

(You can read the full research report on Procter & Gamble here >>>)
 

Shares of Chevron have outperformed the Zacks Soap and Cleaning Materials industry over the past year (+22.9% vs. +11.3%). The Zacks analyst believes that based on a slew of tailwinds, the company seems poised for further capital appreciation. The supermajor is considered one of the best placed integrated oil firms to achieve sustainable production growth. America’s No. 2 energy company’s project pipeline is among the best in the industry, thanks to its premier position in the lucrative Permian Basin.
 

Chevron’s Noble Energy takeover expanded its footprint in the region and the DJ Basin along with the addition of cash generating offshore assets in Israel. In shareholder friendly moves, the integrated major recently hiked its dividend twice and revived the stock repurchase program. Consequently, Chevron is viewed as a preferred energy major to own now.
 

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

Shares of Novo Nordisk have underperformed the Zacks Large Cap Pharmaceuticals industry in the year to date period (-11.7% vs. -7.2%). The Zacks analyst believes that the company continues to face pricing pressure from other players in the diabetes market which is a concern. Moreover, lower realized prices in the United States, loss of exclusivity for products and stiff competition are affecting sales.

Sales are also being negatively impacted by the COVID-19 pandemic. Also, the supply challenges for Wegovy has hurt the stock. The patent expiry on some of the products in Novo Nordisk’s portfolio is concerning too.
 

However, its marketed drug, Ozempic, is off to a solid start. The launch of Rybelsus also looks impressive. Ozempic, Rybelsus, Xultophy and Saxenda have been helping the company maintain momentum. Label expansion of existing drugs is likely to further boost sales.
 

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

Other noteworthy reports we are featuring today include FedEx Corp. (FDX), Fortinet, Inc. (FTNT) and Palo Alto Networks, Inc. (PANW).
 

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>>>