Friday, November 18, 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 Lowe’s Companies, Inc. (LOW), Gilead Sciences, Inc. (GILD) and Intuitive Surgical, Inc. (ISRG). 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 >>>
Lowe’s shares have outperformed the Zacks Building Poducts – Retail industry over the past six months (+10.9% vs. +8.7%). The company remains well positioned to capitalize on demand for the home improvement market, backed by investments in technology, merchandise category and strength in Pro business.
Lowe’s posted sturdy quarterly results wherein the bottom line beat the Zacks Consensus Estimate and grew year over year. Earnings performance benefited from strong operating margin, stemming from gains from the Total Home strategy and the execution of the Perpetual Productivity Improvement initiative. Focus on driving productivity boosted margins.
The Total Home strategy is resonating well with Pro and DIY customers for a while. Management is committed to enhancing the Pro offerings, expanding the company’s market share and driving its operating margin.
(You can read the full research report on Lowe’s here >>>)
Shares of Gilead Sciences have outperformed the Zacks Medical – Biomedical and Genetics industry over the past year (+21.7% vs. -24.0%). The company’s results are driven by continued demand for its HIV portfolio with further share growth for flagship therapy Biktarvy and oncology revenues driven by cell therapy and Trodelvy. Though sales of COVID-19 treatment, Veklury (remdesivir) declined, but came in better than expected.
The approval of new treatments like Sunlenca will strengthen the HIV franchise. The company is also looking to solidify its oncology franchise through internal pipeline development and strategic collaborations. The acquisition of Immunomedics added the breast cancer drug Trodelvy to its portfolio.
However, the loss of Atripla and Truvada’s exclusivity is affecting sales. Although the CAR-T cell therapy franchise is gaining traction, it has a long way to go.
(You can read the full research report on Gilead Sciences here >>>)
Intuitive Surgical’s shares have declined -25.2% over the past year against the Zacks Medical – Instruments industry’s decline of -29.4%. The company is facing macroeconomic and geopolitical headwinds might significantly hurt small businesses operations, thereby posing risks for Intuit’s top-line growth. Additionally, higher costs and expenses due to increased investments in marketing and engineering teams are likely to continue impacting bottom-line results in the near term.
However, Intuit is benefiting from strong momentum in online ecosystem revenues and solid professional tax revenues. The TurboTax Live offering is also driving growth in the Consumer tax business. Solid momentum in the company’s lending product, QuickBooks Capital, remains a positive.
Moreover, the company’s strategy of shifting its business to cloud-based subscription model will help generate stable revenues over the long run. We expect Intuit’s revenues to grow at a CAGR of 13.2% through fiscal 2023-2025.
(You can read the full research report on Intuitive Surgical here >>>)
Other noteworthy reports we are featuring today include Berkshire Hathaway Inc. (BRK.B), Valero Energy Corporation (VLO), and MercadoLibre, Inc. (MELI).
Director of Research
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
Lowe’s (LOW) Digital & Pro Businesses Appear Encouraging
Biktarvy Fuels Gilead (GILD) Amid Generic Competition
Intuitive Surgical (ISRG) Rides on a Solid Global Foothold
MercadoLibre (MELI) Gains From Total Payment Volume Growth
Per the Zacks analyst, MercadoLibre benefits from solid total payment volume growth which is driven by strong momentum across Mercado Pago and mobile-point-of-sale business.
Restructuring Aids Ameriprise (AMP), Asset Outflows a Woe
Per the Zacks analyst, Ameriprise’s efforts to restructure operations and focus on core businesses will support revenues. Yet, outflows in the Asset Management segment and rising costs are concerns.
Paycom Software (PAYC) Benefits From Growing Customer Base
Per the Zacks Analyst, Paycom Software is benefiting from its differentiated employee strategy, measurement capabilities and comprehensive product offerings, that are helping it win new customers.
Strong Design Business Aids AECOM (ACM) Amid Economic Risks
Per the Zacks analyst, AECOM is gaining from accelerating organic growth, business collaborations, a disciplined capital allocation policy and a record design backlog despite economic challenges.
Genpact (G) Gains From AI Product Portfolio, Liquidity Low
Per the Zacks analyst, acquisitions like Rage Framework and Tandem Seven have expanded Genpact’s AI product portfolio. Low liquidity remains a concern.
Air Traffic Aid Spirit Aerosystems (SPR) Amid Weak Solvency
Per the Zacks analyst, improving domestic air traffic tend to provide a boost to Spirit Aerosystems’ commercial business. Yet, its weak solvency position remains a bottleneck.
GoPro (GPRO Performance Benefits from Higher Subscribers
Per the Zacks analyst, GoPro’s performance is gaining from increasing subscribers and expanding direct-to-consumer business. Stiff competition and inflationary pressure remain major concerns.
Berkshire (BRK.B) Poised to Grow on Solid Insurance Business
Per the Zacks analyst, Berkshire is set for growth riding on the strength of solid insurance business that drive earnings and generates maximum return on equity apart from fueling increase in float.
Valero (VLO) Gains On Higher Gulf Coast Refinery Throughput
The Zacks analyst is impressed by Valero’s Gulf Coast refineries, contributing the most to its total throughput volumes. Higher Gulf Coast export volumes will also support its margins.
Murphy USA (MUSA) Gains from Proximity to Walmart Stores
The Zacks analyst likes the proximity of Murphy USA’s fuel stations to Walmart supercenters and the consistent traffic that these stores attract, thereby driving above-average fuel sales volume.n
Cost-Inflation & Forex Woes Weigh on Stanley Black (SWK)
The Zacks analyst is concerned about the volatile demand environment, input cost-inflation and adverse foreign currency movements, which force the company to lower its 2022 earnings forecast.
Higher Costs, Maintenance Outages Ail LyondellBasell (LYB)
Per the Zacks analyst, the company faces headwinds associated with maintenance turnarounds in 2022. Higher raw material and energy costs will also weigh on its margins.
Stiff Competition, Forex Woes Continue to Ail Avantor (AVTR)
The Zacks analyst is worried about Avantor facing fierce competition across its products and the markets in which it operates. Unfavorable currency movement is an added issue.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report
Lowe’s Companies, Inc. (LOW) : Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
Valero Energy Corporation (VLO) : Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report
MercadoLibre, Inc. (MELI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research