Top Analyst Reports for Novo Nordisk, Walmart & AMD
Wednesday, December 27, 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), Walmart Inc. (WMT) and Advanced Micro Devices, Inc. (AMD). 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 Novo Nordisk have outperformed the Zacks Large-Cap Pharmaceuticals industry over the past year (+55.5% vs. +9.1%). The company beat earnings and revenue estimates in third-quarter 2023 due to higher GLP-1 product sales. It has one of the broadest diabetes portfolios in the industry. Ozempic and Rybelsus have been performing well in the diabetes market.
Obesity drug Wegovy has been enjoying increasing demand. Label expansions of diabetes and obesity care drugs in cardiovascular and other indications will likely boost sales. Novo Nordisk raised its 2023 view due to higher demand for Ozempic and Wegovy.
Its diversifying efforts to develop new treatments are encouraging. To tackle the supply constraints of Wegovy in international markets, Novo recently announced initiating a €2.1 billion project to expand its current manufacturing facility in Chartres, France.
(You can read the full research report on Novo Nordisk here >>>)
Walmart’s shares have outperformed the Zacks Retail - Supermarkets industry over the past year (+10.4% vs. +9.3%). The company’s performance was driven by its robust omnichannel operations aimed at improving the overall shopping experience. Walmart’s strategic focus on enhancing delivery services has been especially rewarding.
This is evident from the constant increase in the market share for groceries, which boosted U.S. comparable sales in the second quarter of fiscal 2024. During the quarter, the top and bottom lines grew year over year, encouraging management to raise its guidance for fiscal 2024.
Strong comp sales growth globally and e-commerce growth across all units were upsides. While the gross margin increased year over year, it was partly hurt by an adverse category mix, which is likely to linger in the third quarter. Management also expects variable pay expenses to increase year over year in the third quarter.
(You can read the full research report on Walmart here >>>)
Shares of AMD have outperformed the Zacks Electronics - Semiconductors industry over the past year (+129.2% vs. +102.9%). The company is benefiting from portfolio strength and an expanding partner base. Strong demand for EPYC processors has been a growth driver.
The launch of the Ryzen 8040 series processor with Ryzen AI and Instinct MI300 Series data center AI accelerators bodes well for top-line growth. AMD continues to benefit from acquisitions, including Xilinx and Pensando, which has diversified its business.
For fourth-quarter 2023, AMD expects to witness year-over-year growth in the Data Center and Client segments by double-digit percentage. Sequentially, the Data Center segment’s revenues are expected to grow on a double-digit percentage, while Client is expected to increase. However, weakness in the Gaming and Embedded segment revenues are expected to hurt top-line growth.
(You can read the full research report on AMD here >>>)
Other noteworthy reports we are featuring today include Verizon Communications Inc. (VZ), Caterpillar Inc. (CAT) and Union Pacific Corp. (UNP).
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
Strong Wegovy & Ozempic Demands Boost Novo Nordisk (NVO)
Walmart (WMT) Benefits from Impressive E-Commerce Operations
AMD Rides on Strong Adoption of EPYC & Ryzen Processors
Featured Reports
Verizon (VZ) Rides on Solid Wireless Momentum, 5G Traction
Per the Zacks analyst, Verizon is witnessing significant 5G adoption and fixed wireless broadband momentum with various mix and match pricing plans and collaborations with streaming platforms.
Caterpillar (CAT) to Gain on Strong Demand in End Markets
Per the Zacks analyst, solid backlog, improving end-market demand and focus on making strategic investments in expanded offerings, services and digital initiatives will drive Caterpillar's results.
Union Pacific (UNP) Rides on Dividends Amid Declining Volume
The Zacks analyst likes the shareholder-friendly measures adopted by Union Pacific. The decline in volumes due to soft consumer markets and reduced fuel surcharge revenue is a concern.
Palo Alto (PANW) Rides on Product Strength, Marketing Effort
Per the Zacks analyst, Palo Alto Networks is gaining from solid contributions of its growth-oriented products including Prisma and Cortex. Increasing marketing efforts are also positive.
Acquisitions and Strong Capital Position Benefit Aon (AON)
Per the Zacks Analyst, buyouts and tie-ups have enhanced Aon's capabilities, which, in turn, have driven revenues. Further, a solid capital position remains a key catalyst.
New Customers, Robust Omnipod 5 Sales Aid Insulet (PODD)
The Zacks analyst is bullish about solid new customer gains and increasing volume growth through the U.S. pharmacy channel of Insulet. Also, the robust global uptake of Omnipod 5 seems encouraging.
Solid Sales Volume & Growth Plans Aid Armstrong World (AWI)
Per the Zacks analyst, increasing sales volume trend, contributions from acquisitions and diversity in end markets aid Armstrong World. Also, efficient execution of its growth strategies bode well.
New Upgrades
Imperial (IMO) to Gain from Majority Holding by ExxonMobil
The Zacks analyst thinks that Imperial's financial backing by majority owner ExxonMobil adds to the company's financial stability and investor friendly moves boost optimism surrounding the stocks.
Leer Mine, Long-term contracts Aid Arch Resources (ARCH)
Per the Zacks analyst Arch Resources will gain from its long-term contracts, while contribution from its Leer Mine will ensure supply of high grade coking coal to global markets.
New Technology, Acquisitions Aid Consolidated Water (CWCO)
Per the Zacks analyst Consolidated Water will gain from usage of Reverse Osmosis Technology to convert seawater to meet potable water demand. Contribution from acquired assets boosts its revenues.
New Downgrades
Weak Industrial Segment and Increasing Costs Ail Barnes (B)
Per the Zacks analyst, Barnes is experiencing softness in the Industrial unit due to ongoing United Auto Workers strike within the motion control solutions business. High costs are an added concern.
Sluggishness in Analog Segment Ails Texas Instruments (TXN)
Per the Zacks analyst, widespread weakness in the end-markets especially in industrial and communication equipment markets, are hurting Texas Instruments' Analog segment.
Rising Costs, Loan Concentration Ail Regions Financial (RF)
Per the Zacks analyst, consistently rising expenses affects Regions Financial's bottom line. Also, substantial exposure to commercial loans keeps us apprehensive.
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
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
Caterpillar Inc. (CAT) : Free Stock Analysis Report
Verizon Communications Inc. (VZ) : Free Stock Analysis Report
Novo Nordisk A/S (NVO) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Union Pacific Corporation (UNP) : Free Stock Analysis Report
