Tuesday, February 14, 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 Chevron Corporation (CVX), Novo Nordisk A/S (NVO) and Amgen Inc. (AMGN). 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 Chevron have gained +25.1% over the past year against the Zacks Oil and Gas - Integrated - International industry’s gain of +27.3%. The company is considered one of the best-placed global integrated oil firms to achieve sustainable production ramp-up.

America’s No. 2 energy firm’s existing project pipeline is among the best in the industry, thanks to its premier position in the lucrative Permian Basin. As a reflection of these positives, we expect CVX’s EPS to jump 132% in 2022.

However, Chevron was not immune to the commodity price crash of 2020, forcing it to cut spending substantially. The company’s high oil price sensitivity is a concern too. Moreover, the supermajor’s 10-year reserve replacement ratio of 100% is indicative of its inability to replace the amount of oil and gas produced.

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

Shares of Novo Nordisk have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+45.8% vs. +14.2%). The company has one of the broadest diabetes portfolios in the industry. Ozempic and Rybelsus have been performing well in the market. Drug sales have been gaining and maintaining momentum.

Label expansion of the existing drugs is likely to boost sales further in the days ahead. Ozempic is off to a solid start since its launch and will drive growth for the company. The launch of Rybelsus also looks impressive. The supply issues with Wegovy are resolved now. However, 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 >>>)

Amgen shares have outperformed the Zacks Medical - Biomedical and Genetics industry over the past year (+8.6% vs. -7.7%). The company beat Q4 estimates for earnings and sales. While key drugs like Prolia, Repatha and Evenity are driving sales, increasing competition for its legacy products is hurting the same. Amgen is rapidly advancing its robust pipeline.

The acquisition of ChemoCentryx added a strategic new growth asset, Tavneos, to Amgen’s portfolio. Amgen boasts a strong biosimilars portfolio with potential new products expected to drive long-term growth.

However, increased pricing headwinds and competitive pressure are hurting sales of many of Amgen’s products including some biosimilars. Increasing biosimilar competition for some legacy products and weakness in key brands like Otezla and Lumakras, create potential revenue headwinds.

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

Other noteworthy reports we are featuring today include Starbucks Corporation (SBUX), General Dynamics Corporation (GD) and ResMed Inc. (RMD).

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>>>