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Top Analyst Reports for Apple, Amazon.com & AbbVie

·6 min read

Monday, September 19, 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 Apple Inc. (AAPL), Amazon.com, Inc. (AMZN) and AbbVie Inc. (ABBV). 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 >>>

Apple’s shares have gained +6.0% over the past year, roughly in line against the Zacks Computer - Mini computers industry’s gain of +6.4%. The company is benefiting from continued momentum in the Services and robust performance from iPhone, Mac, Wearables and an expanding App Store ecosystem.

The latest iPhone 14 Pro Max model is witnessing high pre-order which is expected to drive top-line growth. The Zacks analysts expect Apple’s fiscal 2022 revenues to increase 7.2% year over year with Services growing 14.1%.

However, Apple did not provide revenue guidance for the fourth quarter of fiscal 2022. Apple expects year-over-year revenue growth to accelerate during the fiscal fourth quarter on a sequential basis, despite approximately 600 basis points of unfavorable year-over-year impact from forex. Services revenue growth is expected to be lower than the June quarter due to challenging macroeconomic conditions and unfavorable forex.

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

Amazon.com shares have declined -26.7% over the past year against the Zacks Internet - Commerce industry’s decline of -34.7%. The company’s growing expenses associated with supply-chain constraints and labor supply shortages remain concern. Nevertheless, Amazon is gaining on solid Prime momentum owing to ultrafast delivery services and a strong content portfolio. Further, strengthening relationship with third-party sellers is a positive.

Also, growing momentum across Amazon Music is contributing well. Additionally, strong adoption rates of AWS is aiding the company’s cloud dominance. An expanding AWS services portfolio is continuously helping Amazon in gaining further momentum among the customers.

Further, robust Alexa skills and expanding smart home products portfolio are positives. The company’s strong global presence and solid momentum among the small and medium businesses remain tailwinds.

(You can read the full research report on Amazon.com here >>>)

AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+39.2% vs. +11.0%). The company has successfully expanded the labels of its cancer drugs, Imbruvica and Venclexta. It has several new drugs in its portfolio, which have the potential to drive revenues once Humira loses U.S. exclusivity in 2023.

Skyrizi and Rinvoq are going strong bolstered by approval in new indications. It has an impressive late-stage pipeline and several early/mid-stage candidates that have blockbuster potential. Allergan’s acquisition has diversified AbbVie’s revenue base into new therapeutic areas, enhancing its long-term growth potential.

However, there are concerns about long-term sales growth once Humira generics enter the U.S. market. Increasing competition from newer therapies is hurting Imbruvica’s sales

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

Other noteworthy reports we are featuring today include AstraZeneca PLC (AZN), Philip Morris International Inc. (PM), and BlackRock, Inc. (BLK).

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>>>

Today's Must Read

Robust Portfolio, Services Strength to Benefit Apple (AAPL)

Amazon (AMZN) Rides on Prime Strength & Growing AWS Adoption

AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth

Featured Reports

Cancer Drugs Aid AstraZeneca (AZN) Sales Amid China Impact
The Zacks analyst says that AstraZeneca's cancer drugs, Lynparza, Tagrisso and Imfinzi, should keep driving revenues despite slowing sales in China and COVID impact on sales of some drugs.

Phillip Morris (PM) Gains From Smoke-Free Product Category
Per the Zacks analyst, Philip Morris has been gaining from solid focus on the reduced-risk or smokeless products category. In the second quarter of 2022, sales from RRPs increased 8.2% year over year.

Buyouts, Active Equity Focus Aid BlackRock (BLK), Costs Ail
Per the Zacks analyst, BlackRock's acquisition efforts and initiatives to restructure the active equity business will aid the top line. These efforts might lead to higher costs, thus hurting profits.

Growth Goals Aid Trane Technologies (TT), Low Liquidity Ails
The Zacks analyst appreciates Trane Technologies' growth initiatives through increased revenue streams from parts, services, used equipment and rentals. Weak liquidity remains a concern.

Buyouts Aid Genuine Parts' Growth (GPC) Amid High SG&A Costs
Genuine Parts' (GPC) buyouts of Steady, Lausan and Canol, KDG augur well for its top-line growth. But, per the Zacks analyst, soaring SG&A costs led by technology innovation may dent margins.

A Slew of Strategic Deals Continue to Aid Catalent (CTLT)
The Zacks analyst is upbeat about Catalent's robust growth opportunities via its tie-ups and buyouts over the past few months despite its operation in a tough competitive space.

Infrastructure Investment, Cost Management Aid Evergy (EVRG)
Per the Zacks analyst, Evergy's investment of $10.7 billion through 2026 will strengthen its infrastructure, while efficient cost management will drive its performance over the long run.

New Upgrades

Pure Storage (PSTG) Benefits from Robust Product Portfolio
Per the Zacks analyst, Pure Storage's strong portfolio of solutions like Pure as-a-Service and Evergreen is driving the performance. Strength in FlashArray and FlashBlade businesses bodes well.

Helmerich & Payne (HP) to Gain from Proprietary FlexRigs
The Zacks analyst believes that Helmerich & Payne's technologically-advanced FlexRigs help it to consolidate activity levels and maintain strong rig margins.n

Strategic Plan, Rising Rates Aid Associated Banc-Corp (ASB)
Per the Zacks analyst, strategic plan to expand lending capabilities, higher interest rates and a solid balance sheet will keep aiding Associated Banc-Corp amid rising costs and high debt levels.

New Downgrades

Supply Chain Woes & Stiff Competition to Hurt Itron (ITRI)
Per the Zacks analyst, increasing supply challenges and component constraints continue to be a major headwind for Itron. Stiff competition and leveraged balance sheet is an added concern.

Inflationary Pressures Hurt Red Robin's (RRGB) Prospects
Per the Zacks analyst, Red Robin's operations are likely to be affected by higher commodity and wage rate inflation. Also, pandemic induced supply chain disruptions remains a concern.

Allstate (ALL) Increased Cat Loss & Elevated Debt Level Ail
Per the Zacks analyst, exposure to catastrophic events continues to dent Allstate's underwriting profitability. Rising debt remains a concern as it results in escalated interest expenses.

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
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
AstraZeneca PLC (AZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
BlackRock, Inc. (BLK) : Free Stock Analysis Report
Philip Morris International Inc. (PM) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
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