News

Tuesday, April 9, 2024

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 AbbVie Inc. (ABBV), Salesforce, Inc. (CRM) and General Electric Company (GE). 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 >>>

AbbVie’s shares have modestly outperformed the Zacks Large Cap Pharmaceuticals industry over the past six months (+16.3% vs. +15%) on the back of optimism about the company's portfolio of new drugs.

Newer products, Skyrizi and Rinvoq, are performing extremely well, bolstered by approval in new indications, which should support top-line growth in the next few years. AbbVie has several early/mid-stage candidates that have the potential to drive long-term growth. Though revenues declined in 2023, AbbVie expects to return to robust sales growth in 2025.

However, the company faces several near-term headwinds like Humira’s biosimilar erosion, increasing competitive pressure on Imbruvica and weakness in fillers. Estimates have risen slightly ahead of Q1 earnings. AbbVie has a positive record of earnings surprises in recent quarters.

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

Shares of Salesforce have outperformed the Zacks Computer - Software industry over the past year (+57.8% vs. +44%). The company is benefiting from a robust demand environment as customers are undergoing a major digital transformation. Its sustained focus on aligning products with customer needs is driving the top line.

Continued deal wins in the international market are another growth driver. The buyout of Slack has positioned the company as a leader in enterprise team collaboration and improved its competitive standing versus Microsoft Teams. Salesforce’s strategy of continuously expanding generative AI offerings will help it tap the growing opportunities in the space.

However, stiff competition and unfavorable currency fluctuations are concerns. Also, softening IT spending amid the ongoing macroeconomic uncertainties could hurt its growth prospects.

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

General Electric shares have significantly outperformed the Zacks Diversified Operations industry over the past year (+66.2% vs. +11.3%) reflecting the value unlocked by the company's restructuring. The company has been witnessing strength in its Aerospace business, driven by robust demand for commercial engines and services. Rising U.S. & international defense budgets, geopolitical tensions, positive airline & airframer dynamics and robust demand for commercial air travel auger well for the company.

General Electric’s portfolio reshaping actions are likely to unlock values for its shareholders. GE Aerospace’s shareholder-friendly policies are also encouraging. Shares of the company have outperformed the industry in the past six months.

However, it has been dealing with high costs and expenses related to certain projects and restructuring activities, which might affect its margins and profitability. Supply-chain disruptions in the defense market continue to take a toll on its operations. Also, foreign exchange headwinds might be worrying.

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

Other noteworthy reports we are featuring today include BP p.l.c. (BP), The TJX Companies, Inc. (TJX) and UBS Group AG (UBS).

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>>>

Today's Must Read

Featured Reports

BP's Robust Upstream Project Portfolio & Transition Plan Aid
BP has a strong portfolio of upstream projects, backed by impressive production growth and an aggressive energy transition plan. Yet, its high debt exposure concerns the Zacks analyst.

Online Growth to Fuel TJX Companies (TJX), High Costs a Woe
Per the Zacks analyst, TJX Companies is set to keep gaining from robust efforts to boost online sales. However, increased selling, general and administrative costs is a headwind.

Differentiation Aids Waste Management (WM) Amid Competition
Per the Zacks analyst, differentiation through the capitalization of extensive assets ensures long-term profitable growth for Waste Management. Rising competition from other players is an overhang.

Strength in Global Data Services Aid Intercontinental (ICE)
Per the Zacks analyst, Intercontinental is set to grow on solid portfolio, wide range of risk management services, cost synergies and solid capital position. Yet, rising expenses might weigh on margin

A Solid Product Suite Aids Ecolab (ECL) Amid Stiff Competition
The Zacks analyst is upbeat about Ecolab's solid product portfolio despite its operation in a highly competitive market.

Ventas (VTR) to Ride on Healthy Senior Housing Fundamentals
Per the Zacks Analyst, Ventas is well-poised to benefit from the favorable demand backed by an expected rise in senior citizens' population and limited supply, though high interest rates are a concern

Strategic Education (STRA) Rides on Strong Enrollments
Per the Zacks analyst, Strategic Education has been gaining from solid enrollment growth along with its focus on digital learning platforms and competency-based learning models.

New Upgrades

UBS Group's (UBS) Reform & Buyouts Aid Amid High Costs
Per Zacks analysts, UBS Group benefits from its restructuring activities and strategic acquisitions. Yet, elevated expenses and increased litigation provisions are major concerns.

Spectrum Brands (SPB) Cost-Takeout Actions to Aid Margins
Per the Zacks analyst, Spectrum Brands gains from higher pricing, cost improvements and favorable mix, aiding margins. SPB's cost-takeout actions position it to deliver EBITDA growth in fiscal 2024.

BlackBerry (BB) Gains from Momentum in Cybersecurity Unit
Per the Zacks analyst, momentum in the Cybersecurity unit along with rapid adoption of the QNX platform in the Automotive and General Embedded markets are likely to drive BlackBerry's performance.

New Downgrades

Supply Chain Issues, Poor Financials May Hurt Ormat (ORA)
Per the Zacks analyst, supply chain disruptions caused by hostile conflict between Israel and Palestine may cause delay in Ormat's product delivery. Its poor financial position also remains a concern

Price Erosion and Weak Demand Weigh on Chemours (CC)
Per the Zacks analyst, Chemours faces headwinds from declining demand and falling prices in titanium technologies along with weaker demand in advanced materials, which may hurt future sales.

Weak Demand for 3D Printers Hurts 3D Systems (DDD) Prospects
Per the Zacks analyst, 3D Systems' is suffering from uncertain macroeconomic conditions that are keeping customer budgets under pressure. Weak demand remains a concern in the near term.

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