Thursday, April 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 Novo Nordisk A/S (NVO), Salesforce, Inc. (CRM) and Comcast Corp. (CMCSA). 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 >>>

Novo Nordisk’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+45.1% vs. +10.5%). The company has one of the broadest diabetes portfolios in the industry. Ozempic and Rybelsus have been performing well in the market. Saxenda and Wegovy sales have been gaining and maintaining momentum. Label expansion of the diabetes drugs is likely to further boost sales.

The supply issues with Wegovy have been resolved, which led to a sales increase in the first quarter of 2023. Novo upped its full-year guidance, based on this encouraging Wegovy growth trend. The company’s diversifying efforts to develop new treatments are reassuring.

However, the patent expiry on some of the products in Novo Nordisk’s portfolio remains a concern. Estimates have improved ahead of the first quarter earnings release. Novo has a mixed record of earnings surprises in recent quarters.

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

Shares of Salesforce have outperformed the Zacks Computer - Software industry over the past year (+6.3% vs. +3.3%). The company is benefiting from a robust demand environment as customers are undergoing a major digital transformation. The rapid adoption of its cloud-based solutions is driving demand for its products.

Sustained focus on introducing more aligned products as per customer needs is driving its top-line. Continued deal wins in the international market is another growth driver. The acquisition of Slack would position the company to be a leader in enterprise team collaboration solution space and better compete with Microsoft’s Teams product.

The Zacks analyst expect CRM revenues to grow at a CAGR of 11.2% through fiscal 2024-2026. However, stiff competition and unfavorable currency fluctuations are concerns. Challenging macroeconomic environment might hurt its growth prospects in the near-term.

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

Shares of Comcast have outperformed the Zacks Cable Television industry over the past six months (+26.7% vs. +16.6%). The company is benefiting from a growing wireless subscriber base as witnessed in the third quarter. Broadband user base increased in the reported quarter. Comcast’s plan to transition to DOCSIS 4.0 is noteworthy.

The technology will help it in expanding much faster and at a lower cost compared to competitors. Recovery in its Park and Movie business bodes well for Comcast’s profitability. Its streaming service Peacock is a key catalyst in driving broadband sales. Strong free cash flow generation ability is noteworthy.

However, Comcast persistently suffers from video-subscriber attrition due to cord-cutting. Moreover, broadband prospects are suffering from increased competition from fixed wireless as well as fiber. Additionally, a leveraged balance sheet is a major concern.

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

Other noteworthy reports we are featuring today include AstraZeneca PLC (AZN), Honeywell International Inc. (HON) and The Progressive Corp. (PGR).

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>>>