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Top Analyst Reports for Alphabet, Novo Nordisk & TotalEnergies

Thursday, January 5, 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 Alphabet Inc. (GOOGL), Adobe Inc. (ADBE) and TotalEnergies SE (TTE). 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 Alphabet have declined -37% over the past year against the Zacks Tech sector's decline of -33.1% and the S&P 500 index's -19.3% decline. The company is faced with a sluggish advertisement market as a result macroeconomic forces beyond its control. Additionally, its growing litigation issues and increasing expenses are are some of the other concerns.

However, Alphabet's strong cloud division is aiding substantial revenue growth. Moreover, expanding data centers will continue to bolster its presence in the cloud space. Further, major updates in its search segment are enhancing the search results.

Also, strong focus on innovation of AI techniques and the home automation space should aid business growth in the long term. The company’s deepening focus on wearables category remains a tailwind. Also, Alphabet’s expanding presence in the autonomous driving space is contributing well.

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

Shares of Adobe have underperformed the Zacks Computer - Software industry over the past year (-35.7% vs. -26.9%) and the broader market's -19.3% decline. The weakening macroeconomic backdrop resulting from Fed tightening in the U.S. and uncertainty in Europe in the wake of the Ukraine war remain major headwinds for Adobe's Digital Media segment. The Zacks analyst also envisions margins pressures on account of elevated expenses.

However, Adobe is benefiting from strong demand for its creative products. The company’s Creative Cloud, Document Cloud and Adobe Experience Cloud products is driving the top-line growth. Additionally, rising subscription revenues and solid momentum across the mobile apps remain major positives.

Further, growth in emerging markets, robust online video creation demand, strong Acrobat adoption and improving average revenue per user remain tailwinds. We remain optimistic about Adobe’s market position, compelling product lines, continued innovation and solid adoption of Creative Cloud.

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

Shares of TotalEnergies have gained +16.9% over the past year against the Zacks Oil and Gas - Refining and Marketing industry’s gain of +24.4%. The company continues to gain from startups, well-spread LNG assets and an expanding upstream portfolio that has exposure to fast-growing hydrocarbon-producing regions.

TotalEnergies streamlines its portfolio through acquisitions, partnerships and divestitures. TotalEnergies is making regular investments to expand the renewable operation and aims to achieve net-zero emissions by 2050. Its production is impacted by the natural decline of oil and natural gas fields.

TotalEnergies remains exposed to acquisition-related risks as these assets contribute a sizable volume to production. TotalEnergies operates in some politically troubled regions, and the ongoing conflict between Russia and Ukraine might affect profitability.

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

Other noteworthy reports we are featuring today include Novo Nordisk A/S (NVO), ConocoPhillips (COP) and Diageo plc (DEO).

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

Alphabet (GOOGL) Benefits From Cloud & Search Initiatives

Adobe (ADBE) Rides on Growing Adoption of Cloud Applications

Expanding LNG & Clean Energy Assets Aid TotalEnergies (TTE)

Featured Reports

ConocoPhillips (COP) Banks On Oil-Rich Bakken Shale Assets
The Zacks analyst is upbeat about 750 undrilled Bakken Shale play locations of ConocoPhillips, which will drive oil production growth. Yet, rising production and operating costs are concerning.

Diageo's (DEO) Robust Pricing & Premiumization Aid Margins
Per the Zacks analyst, Diageo has been witnessing robust margin trends driven by its premiumization efforts and pricing actions. It expects continued organic operating margin growth in FY23.

Dividends & Buyback Aid Canadian National (CNI), Expenses Ail
The Zacks analyst likes the shareholder-friendly measures adopted by Canadian National. However, rising operating expenses are concerning as they are likely to keep the bottom line under pressure.

5G Network Deployment Efforts to Aid Crown Castle (CCI)
Per the Zacks Analyst, Crown Castle is set to benefit from high network investments by wireless carriers to deploy 5G networks. However, customer concentration and rising interest rates are key woes.

Cost Efficiency Program Continues to Drive Ecolab (ECL)
The Zacks analyst is upbeat about Ecolab's cost efficiency program despite its operation in a tough competitive landscape.

Strength in Aviation & Outdoor Segments Aids Garmin (GRMN)
Per the Zacks analyst, growing demand for adventure watches is driving Garmin's outdoor segment. Solid momentum across the aftermarket category is contributing well to Aviation segment revenues.

Ubiquiti (UI) Rides on Proprietary Communication Platform
Per the Zacks analyst, Ubiquiti is likely to benefit from a proprietary network communication platform and an upgraded the UniFi ecosystem that is well equipped to meet end-market customer needs.

New Upgrades

Novo Nordisk (NVO) Rides High on Robust Diabetes Drugs Sales
Per the Zacks analyst, Novo Nordisk has a strong presence in the Diabetes Care market which is driving growth. Label expansion of existing drugs including Ozempic and Rybelsus is likely to boost sales

Growth Projects, Kirkland Buyout Aid Agnico Eagle (AEM)
Per the Zacks analyst, the company will benefit from investment in growth projects to expand output. The Kirkland Gold acquisition has also provided an extensive pipeline of exploration projects.

American Airlines (AAL) Rides on Improving Air-Travel Demand
The Zacks Analyst is impressed with the fact that increased air-travel demand is helping American Airlines carry more passengers and witness more revenues.

New Downgrades

High Input Costs, Supply Constraints to Hurt Astec (ASTE)
The Zacks analyst is concerned that elevated input costs and manufacturing challenges due to supply chain and logistic disruptions will continue to weigh on Astec's results.

Assurant (AIZ) Hurt by High Costs and Decreasing Premiums
Per the Zacks analyst, high cost due to higher administrative expenses weigh on margin expansion. Also, lower premiums from lender-placed insurance within Global Housing affect revenue growth.

Inflationary Pressures Hurt Cracker Barrel's (CBRL) Prospects
Per the Zacks analyst, Cracker Barrel's operations are likely to be affected by commodity and wage inflation and supply chain challenges. Also, decline in traffic from pre-pandemic levels is a concern

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

ConocoPhillips (COP) : Free Stock Analysis Report

Novo Nordisk AS (NVO) : Free Stock Analysis Report

Adobe Inc. (ADBE) : Free Stock Analysis Report

Diageo plc (DEO) : Free Stock Analysis Report

Alphabet Inc. (GOOGL) : Free Stock Analysis Report

TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report

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