Top Analyst Reports for Procter & Gamble, AbbVie & Walt Disney
Thursday, August 24, 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 The Procter & Gamble Company (PG), AbbVie Inc. (ABBV) and The Walt Disney Company (DIS). 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 >>>
Procter & Gamble shares have outperformed the Zacks Soap and Cleaning Materials industry over the past six months (+11.6% vs. +8.0%). The company continued its robust top and bottom-line surprise trend for the fourth consecutive quarter in the last quarterly release. Also, sales and earnings grew year over year.
Procter & Gamble’s organic sales grew, driven by robust pricing and a favorable mix, along with strength across segments. It has been focused on productivity and cost-saving plans to boost margins. Consequently, management has provided an optimistic view for fiscal 2024.
However, the company has been witnessing supply-chain issues, higher SG&A costs, higher transportation costs, geopolitical challenges, currency headwinds and rising inflation. Procter & Gamble’s significant international presence exposes it to foreign currency risks, which have been weighing on the company’s performance.
(You can read the full research report on Procter & Gamble here >>>)
Shares of AbbVie have gained +9.8% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +23.7%. The company has several new drugs in its portfolio with the potential to drive the top line and make up for lost Humira revenues.
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. The company has several early/mid-stage candidates that have blockbuster potential. AbbVie expects several key data readouts in 2023.
However, the company faces several near-term headwinds like Humira loss of exclusivity, increasing competitive pressure on Imbruvica and economic pressure on Juvederm sales. Nonetheless, though revenues are expected to decline in 2023, AbbVie expects to return to robust sales growth in 2025.
(You can read the full research report on AbbVie here >>>)
Shares of Walt Disney have declined -1.2% over the year-to-date period against the Zacks Media Conglomerates industry’s decline of -1.4%, reflecting concerns about the profitability of the company's streaming business and the long-term outlookf for its media business in the cord-cutting backdrop. Nevertheless, Walt Disney is benefiting from rebounding Parks, Experiences and Products businesses as reflected by the fiscal third quarter results.
Both domestic and international theme parks reported impressive top-line growth. Upcoming attractions like the Frozen theme land at Hong Kong Disneyland and Walt Disney Studios Park in Paris, as well as the Zootopia theme land at Shanghai Disney Resort, are expected to boost the prospects of the theme parks business.
A strong line-up of movies that includes Haunted Mansion, Poor Things and The Creator bodes well for the Media and Entertainment Distribution segment. The company has been nominated for several Emmy awards, which suggests a strong content portfolio.
(You can read the full research report on Walt Disney here >>>)
Other noteworthy reports we are featuring today include HSBC Holdings plc (HSBC), Boston Scientific Corporation (BSX) and Duke Energy Corporation (DUK).
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
P&G's (PG) Productivity & Cost Savings Plan to Aid Margins
AbbVie's (ABBV) Skyrizi, Rinvoq Key to Top-Line Growth
Strong Content Portfolio & Parks Business Aids Disney (DIS)
Featured Reports
New Buyouts Aid Boston Scientific (BSX), Rising Expenses Ail
Per the Zacks analyst, Boston Scientific is expected to strongly gain from its strategic buyouts of Apollo Endosurgery and Acotec. Yet, rising expenses continue to dent profitability.
Solid Investments Aid Duke Energy (DUK), Weak Solvency Woes
Per the Zacks analyst, Duke Energy's investment in infrastructure and expansion projects tend to boost its long-term growth prospects. However, its weak solvency position remains a bottleneck.
Focused Differentiation Aids Waste Management (WM) Liquidity Low
Per the Zacks analyst, differentiation through capitalization of extensive assets ensures long-term profitable growth for Waste Management. Low liquidity a concern.
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.
Revenue Growth, Decline in Costs Aid Molina Healthcare (MOH)
Per the Zacks analyst, Molina Healthcare's rising revenues can be attributed to strong premium revenues and solid membership growth. Efforts to control costs have been driving its margins.
Dolby Laboratories (DLB) To Gain From Strong Product Portfolio
Per the Zacks analyst, Dolby Laboratories is gaining from increased adoption of Dolby Atmos and Dolby Vision. Also, rising demand for new imaging patents and Dolby Cinema are tailwinds.
Order Growth and Stringent Cost Control Benefits Wayfair (W)
Per the Zacks analyst, Wayfair is benefiting from sequential growth in orders and lower costs that is helping it to report positive adjusted EBITDA and free cash flow.
New Upgrades
Business Restructuring, Focus on Asia, Rates Aid HSBC (HSBC)
Per the Zacks analyst, HSBC's restructuring initiatives, Asia focus expansion efforts, emphasis on profitable businesses, higher interest rates and decent loan demand will keep supporting financials.
Increased Demand & Strategic Initiatives Aid KB Home (KBH)
Per the Zacks analyst, increase in net orders, home deliveries and community count aid KB Home. Also, built-to-order model and Returns-Focused Growth Plan add to the uptrend.
Acquisition Of Dealerships & Franchises To Aid Group 1 (GPI)
Per the Zacks analyst, Group 1's (GPI) effort to expand and optimize its portfolio through acquisitions of dealerships and franchises are likely to boost its prospects.
New Downgrades
Weak Volumes & High Costs to Hurt Sealed Air's (SEE) Results
The Zacks analyst is concerned about the downtrend in Sealed Air's volumes owing to weakness in end markets and customer destocking. Inflated labor and operating costs will also hurt margins.
Nu Skin (NUS) Revenues Hurt by Volatile Currency Movements
Per the Zacks analyst, Nu Skin remains troubled by unfavorable currency rates. The company's second-quarter revenues were hurt by currency headwinds, and are likely to bear 2-3% adverse impact in 2023
Low COVID-19 Testing Sales Disrupt Margin for Labcorp (LH)
The Zacks analyst is worried about Labcorp posting a steady decline in adjusted operating income due to lower COVID testing revenues. Unfavorable mix impact from Ascension also continues to weigh in.
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Boston Scientific Corporation (BSX) : Free Stock Analysis Report
Duke Energy Corporation (DUK) : Free Stock Analysis Report
Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
HSBC Holdings plc (HSBC) : Free Stock Analysis Report
